STRONG GROWTH IN BOTH SALES AND RESULTS OVER THE FIRST HALF-YEAR

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Consolidated data (unaudited) € millionsS1 2017S1 2016Change
Sales197.9182.7+8.3%
EBITDA20.016.7+19.8%
Current operating profit12.49.1+36.3%
Operating profit10.77.6+40.8%
Net profit6.61.8x3.7
Operating cash flow16.312.7+28.3%
Net financial debt38.037.4Ns
Reminder
Edify’s consolidation scope includes de Buyer, Pellenc, Sirem, Usines Métallurgiques de Vallorbe and Zurflüh-Feller, which are fully consolidated, and Gaviota-Simbac, which is proportionally consolidated.
Edify’s half-year financial statements cannot be extrapolated over the full year due to both the significance and strong seasonality of Pellenc’s business (financial performance primarily concentrated over the second half-year).

 

Sales

Consolidated sales totalled €197.9 million for the first six months of the financial year, an increase of 8.3% compared with the same period last year.

Pellenc’s sales increased again as a result of the rise in sales of harvesters, mainly in Italy and the United States.

Sales also continued to move in the right direction for Zurflüh-Feller, due to the recovery of the construction market in France, as well as for Gaviota-Simbac, in both the awnings and roller shutter segments.

Sales were stable for Usines Métallurgiques de Vallorbe which benefited from a slight recovery in the forestry market.

On the other hand, Sirem’s sales decrease in part due to the unfavourable base effect, particularly in the swimming pool cover motors division.

 

Results

Consolidated EBITDA totalled €20.0 million over the half-year, an increase of 19.8% in relation to the previous year, and current operating profit was €12.4 million, up 36.3%.

This improvement relates to most shareholdings and is linked to their healthy sales levels and to good control of their profitability despite the increase in the cost of raw materials.

Net profit grew from €1.8 million last year, an amount which took into account an exceptional expense of €2.9 million related to the updating of a pension scheme, to €6.6 million this year.

 

Financial position

Consolidated net financial debt was €38.0 million at 30 June 2017. It was therefore virtually stable compared with June 2016, and up €15.4 million compared with 31 December 2016, reflecting a seasonal effect on sales and a high level of investments within the various shareholdings.

 

Post-balance sheet events

In July, Zurflüh-Feller finalised the acquisition of Eckermann (sales around €6 million), a German company specialising in components and accessories for roller shutters, offering excellent industrial, commercial and geographic synergies.

In July, Edify sold its shareholding in Sofilab4, La Buvette’s holding company, for €3.9 million.

On 22 September, Edify finalised the acquisition of Thermo Technologies, the holding company that controls Thermocompact Group (sales of approximately €70 million), one of the foremost global specialists in high technology wires for electro-discharge machining and surface coating with precious metals using chemical or electrolytic processes.

In July, Edify increased its available credit line from €63 to €120 million and therefore increased its funds available for new investments to almost €90 million net of the cost of purchasing Thermo Technologies.

 

Corporate profile

Edify is an industrial holding company listed on the Euro-MTF market of the Luxembourg stock exchange.

Its portfolio is comprised of majority and minority shareholdings in French, Spanish and Swiss industrial medium-sized businesses and SMEs, namely Zurflüh-Feller (accessories and systems for roller shutters and industrial closing mechanisms), Sirem (motorised solutions for swimming pool covers, milk tank agitators and aqua fitness equipment), Pellenc (portable power tools and machinery for winegrowing, olive growing and green spaces), Usines Métallurgiques de Vallorbe (filing tools for the jewellery, watchmaking, forestry, car and aeronautical industries), de Buyer (items and utensils for cookery and patisserie), Thermocompact (surface coating with precious metals using chemical or electrolytic processes and high-tech wires for electro-discharge machining), Gaviota-Simbac (components and motors for awnings and roller shutters), Ligier Group (microcars for unlicensed drivers), and Lacroix Emballages (packaging for solid dairy products).

 

 Shareholders’ agenda

Publication of third quarter sales: 30 November 2017

 

Contacts

Edify: Valérie Marqués, Chief Financial Officer (+352 24 83 16 20)
Shan: François-Xavier Dupont (+33 1 44 50 58 74)

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EFFECTIVE TAKEOVER OF THERMOCOMPACT

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Edify has today finalised the acquisition of the entire share capital of Thermo Technologies, the holding company that controls Thermocompact[1], in line with its strategy of investing in leading medium-sized companies in high-growth markets. The currentGroup’s shareholder-executives will reinvest in the business alongside Edify[2].

Thermocompact Group is one of the foremost global specialists in high technology wires (particularly for electro-discharge machining), and surface coating with precious metals using electrolytic processors (silver, gold, tin, nickel, rhodium plating, etc.). It mainly serves cutting edge industries (aeronautics, connectors, medical, telecommunications, etc.) and relies on a manufacturing base made up of four production sites.

Thermocompact has 400 customers across 35 countries and employs 280 people. In 2016, its sales totalled €69.4 million with EBITDA of €8.8 million and current operating profit of €5.5 million.

Edify intends to support Thermocompact in the development of its existing activities and provide it with the necessary resources to enter new markets, such as the vacuum heat treatment sectors in which Thermocompact acquired the French specialist TDSM early in 2017.

The acquisition of Thermo Technologies will be followed by a takeover bid and, if appropriate, by a squeeze-out in relation to shares held by minority shareholders in Thermocompact, at €45.20 per share, subject to the fairness opinion of the independent expert and the compliance notice of the French Financial Markets Authority, the Autorité des Marchés Financiers.

The proposed bid will allow the minority shareholders to sell their shares under financial conditions equivalent to those granted to the owners of Thermo Technologies.

Thermo Technologies shareholders who also have a direct shareholding in the capital of Thermocompact have already committed to tender their shares to said bid[3].

Edify was advised by the firms CMS Francis Lefebvre (Lyon) in relation to the legal aspects of the transaction, Accuracy for the financial part, Neovian Partner for strategy and Expertises Galtier for environmental matters.

Gilles Mollard, Chief Executive Officer of Thermocompact, stated, “Our combination with Edify stems from a shared entrepreneurial approach and a common strategic vision. It will provide us with increased resources to continue our expansion into new international markets and to support innovation in high technology wires and metal coatings. We are taking this new direction with both confidence and enthusiasm.”

Jean-François Lours, Chief Executive Officer of Edify, added, “We are delighted to team up with Gilles Mollard to support Thermocompact in its future challenges and developments. This company from Haute-Savoie (in the French Alps) has developed outstanding expertise, which has made its international expansion a success. We share the management team’s strong growth ambition for the coming years.”

 

[1] Thermocompact is 84.5% held by Thermo Technologies and is listed on Compartment C of Euronext Paris.
[2] Within the next three months, Gilles Mollard, Bernard Mollard and Jean-Claude Cornier will be reinvesting in Thermo Technologies, directly or indirectly, on the same valuation basis as Edify.
[3] Thermocompact shareholders who also have a shareholding in Thermo Technologies hold 4.1% of the share capital of Thermocompact.

 

Corporate profile

Edify is an industrial holding company listed on the Euro-MTF market of the Luxembourg stock exchange.

Its portfolio is comprised of majority and minority shareholdings in French, Spanish and Swiss industrial medium-sized businesses and SMEs, namely Zurflüh-Feller (accessories and systems for roller shutters and industrial closing mechanisms), Sirem (motorised solutions for spa baths, swimming pools and milk tanks), Pellenc (portable power tools and machinery for winegrowing, olive growing and green spaces), les Usines Métallurgiques de Vallorbe (filing tools for the jewellery, watchmaking, forestry, car and aeronautical industries), de Buyer (items and utensils for cookery and patisserie), Thermocompact (surface coating with precious metals using chemical or electrolytic processes and high-tech wires for electro-discharge machining), Gaviota-Simbac (components and motors for awnings and roller shutters), Ligier Group (microcars for unlicensed drivers), and Lacroix Emballages (packaging for solid dairy products).

 

Contacts

Edify: Valérie Marqués, Chief Financial Officer (+352 24 83 16 20)
Shan: François-Xavier Dupont (+33 1 44 50 58 74)

 

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EDIFY DOUBLES ITS FINANCING CAPACITY

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In order to finance its growth strategy, EDIFY has secured additional financial resources by increasing its available credit facility from €63 million to €120 million.

The transaction has been arranged by Crédit Mutuel-CM11 Group. It is based on the original banking pool, comprising Banque Européenne du Crédit Mutuel, BNP Paribas, Crédit Agricole des Savoie, LCL and Société Générale. This transaction reflects their confidence in both the strategy implemented by EDIFY and the equity investments in its portfolio.

After settlement of the Thermo Technologies acquisition (holding company of Thermocompact)[1] set to take place in the coming weeks, Edify will have undrawn funds of €90 million, enabling it to continue its investments and consider more significant acquisitions.

Arranger: Crédit Mutuel Group (Patrick MARET, Franck PHILIPPE and Christelle GALAND)
Lenders: Banque Européenne du Crédit Mutuel, BNP Paribas, Crédit Agricole des Savoie, LCL and Société Générale
Lenders’ Counsel: Cabinet De Gaulle Fleurance & Associés (Thibault HUBERT and May JARJOUR)
EDIFY SA’s Counsel: Watson Farley & Williams practice (Laurence MARTINEZ-BELLET and Christophe GARCIA)

[1] The takeover of Thermo Technologies should take effect in September providing conditions precedent are lifted as scheduled.

 

CORPORATE PROFILE

Edify is an industrial holding company listed on the Euro-MTF market of the Luxembourg stock exchange.

Its portfolio is comprised of majority and minority shareholdings in French, Spanish and Swiss industrial medium-size businesses and SMEs, namely Zurflüh-Feller (accessories and systems for roller shutters and industrial closing mechanisms), Sirem (motorised solutions for swimming pool covers, milk tank agitators and aqua fitness equipment), Pellenc (portable power tools and machinery for winegrowing, olive growing and green spaces), les Usines Métallurgiques de Vallorbe (filing tools for the jewellery, watchmaking, forestry, car and aeronautical industries), Ligier Group (microcars for unlicensed drivers), Lacroix Emballages (packaging for solid dairy products), Gaviota-Simbac (components and motors for awnings and roller shutters), and de Buyer (items and utensils for cookery and patisserie).

 

CONTACTS

Edify: Valérie Marqués, Chief Financial Officer (+352 24 83 16 20)
Shan: François-Xavier Dupont (+33 1 44 50 58 74) – Diane de Brisis (+33 1 47 03 47 36)

 

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