Ghent 25 March 2022 18.30 CET. Press release / regulated info
2021 highlights
- ABO-GROUP achieves record numbers with a 28% increase in revenue to 63.1million
- EBITDA increases from 7.5 to 8.1 Million
- Despite investments and acquisitions, net financial debt is still low at 9.3 millions
Outlook
- Increasing awareness of PFAS issues and climate change will lead to organic growth.
- Continued focus upon external M&A opportunities, illustrated by the first acquisition in 2022 of the soil department of Colsen, a Dutch company
- Priority given to the creation of expert teams in each niche in our three domestic markets
Frank De Palmenaer is the CEO of ABO–GROUP Environment.: Our Group showed the strength and DNA of ABO in 2021. This included the ability to combine strong organic business growth with the complex and successful integration of the Geosonic, Geoplus, Subgeo, Asper acquisitions. The second half of the year saw a rebound in operating margins, which shows that the new activities have become well integrated. With the Euronext Paris additional listing, we are now 8% ahead of the targeted growth path to 100 millions revenue by 2025.
| In 000 | 2021 | 2020 | Change in % | |||
| Revenue | 63,068 | 49,352 | 27.8% | |||
| Total operating income | 64,596 | 49,959 | 29.3% | |||
| EBITDA1 | 8,117 | 7,518 | 8.0% | |||
| Provisions, amortization, and depreciation | -4,973 | -4,478 | 11.1% | |||
| Operating profit | 3,145 | 3,040 | 3.4% | |||
| Financial result | -552 | -503 | 9.7% | |||
| Profit before tax | 2,592 | 2,537 | 2.2% | |||
| Net profit | 2,062 | 2,094 | -1.5% | |||
| Total result | 2,003 | 2,133 | -6.1% | |||
| Earnings per share | 0.19 | 0.20 | -6.1% | |||
| Operating activities generate net cash flow | 6,778 | 8,689 | -22.0% | |||
| Total equity | 20,496 | 18,979 | 8.0% | |||
| Net financial debt | 9,255 | 7,431 | 24.5% | |||
| Total balance sheet | 65,602 | 57,002 | 15.1% |
1EBITDA is defined to be operating profit before depreciation or amortization, and provisions.
2021 highlights
Strong 28% growth in revenue both organically and acquisitive.
ABO-GROUP revenue increased by 28% between 49.4 and 63.1 million in 2021. This was the largest revenue growth. Geosonic France’s acquisitions of Geoplus, Geoplus, Subgeo, Asper and Asper result in 11% revenue growth.
Both the Geotechnology and Environment segments experienced almost the same growth in terms of activities: The revenue of the Environment department grew by 24% to a total of 27.9 millions (compared to 22.4million in 2020), while Geotechnology saw a 31% increase in revenue thanks to the integration with Geosonic in France. This year, Geotechnology had a revenue of 35.1million (26.8 million in 2020). The share of geotechnical activity grew from 54% to 56%.
The French operations continued their strong performance in the first half and now account for more than half the Group’s revenue. They also contributed 53% to the overall revenue. The above-mentioned acquisitions were largely responsible for the overall 38% increase in revenue from 24.1 million in 2020 and 33.2 million this past year. 21%, while existing activities increased by 17%.
The Belgian geotechnical industry continued to grow strongly, and the Environment divisions benefited greatly from the strong increase in demand for asbestos and PFAS. The Translab subsidiary bridges both activities here, and has expanded its originally asbestos-focussed operations using environmentally-targeted laboratory tests. This, along with the 3% growth caused by the Asper acquisition in July, results in an organic increase of 17% which has led to an increase of the total revenue from Belgium from 15.4 to 18.4 million in 2020.
The Group’s Dutch companies also confirmed their strong performance in the first half of the year with a pure organic growth rate of 16%. Despite being under pressure from a tighter labor market, the consulting services sector was still thriving thanks to the large increase in fieldwork.
EBITDA rises to 8.1 Million
EBITDA was 8.1 million, a 559 thousand increase. After a decline in margins in the first half due to the integration cost of the French acquisitions in France, there is now a clear recovery with an EBITDA margin at 13.3% compared with the revenue in second half. The integration of acquisitions is moving well and it is anticipated that they will be able contribute positively to Group profitability in 2022.
The problem of a tight labor market remains. To support growth, the Group will continue to actively search for qualified profiles while focusing on the education and training of existing employees. The future will be a focus on rising salaries due to both expected and recent indexations. It will also continue to pay attention to short-term absorption of staff shortages via temporary employment agencies.
Depreciations increased from $4.5 to $5.0 million. ABO-GROUP continues to invest to upgrade and expand its machinery to be able respond to its customers’ needs. A number of new machines were bought in 2021, including several drill- and probing equipments, as well specialised laboratory equipment.
Due to the higher debt, the financial result has slightly increased. The Group could still rely on a tax credit for R&D in France, which amounts to 355 000 (compared to 270000 in 2020). The net profit was 2.0 million, or 0.19 per share.
Solid 6.8 Million Operating Cash Flow and Net Debt of 1.1x EBITDA
Due to strong revenue growth, the net cash flow from operating activities was 6.8million (-22% more than 2020). The trade receivables, other short-term assets, and trade payables, both increased by 3.75 million. This resulted in the operating capital increasing by 730 000 at the close of the year.
Due to the recent acquisitions as well as investments in operating capital, fixed assets, and operating capital, the net financial obligation increased by 25%, rising from 7.4million at the end 2020 to 9.3million. The Group has room to make new acquisitions with a debt ratio of 1.1x to its operating result before deduction.
The total balance sheet increased from 57.0 million to 65.6 millions. This is mainly due the recent acquisitions as well as the increase in operating capital. However, the liabilities side saw an increase in both short- and long-term obligations. The total equity also increased to 20.5 million, an increase of 19.0 million from the end in 2020. The equity ratio was healthy at 31.2%.
Below is the complete consolidated income statement, balance sheet, statement of changes equity and consolidated cash flow statement.
Outlook
2022 began with the momentum of 2021, with a initial acquisition being an indicator for further growth ambitions.
ABO-GROUP continues to build on its momentum in 2021 and has a strong first quarter of the year. The order books for all the subsidiaries are filled well, which gives confidence for the remainder.
In addition, the Group was able to announce their first acquisition in 2022. The Group announced the acquisition of Colsen in Zeeland (the Netherlands), and is still actively seeking other targets that will enhance its product portfolio and geographic reach within its domestic market. The Group expects that more announcements will follow.
The Board and operating managements believe that the Group is on track to achieve the targeted growth that was outlined last Year, with the goal of reaching the revenue cap at 100 million by 2025. The Group’s strong organic growth numbers in 2021 show that it is able to expand its activities independently. ABO-GROUP, in combination with targeted acquisitions that tap new markets, segments, or skills, is well positioned for the technical market leadership it seeks in its domestic markets.
Financial calendar
22/04/2022: Publication and invitation to the General Meeting of the 2021 year report
25/05/2021 General Meeting
16/09/2021 – Figures for the first six months of 2022
Statement of the statutory audit
Paul Eelen, EY Bedrijfsrevisoren BV’s statutory auditor, has confirmed that there has not been any material misstatement in either the consolidated income statement or the consolidated statements of comprehensive income.
About the ABO–GROUP
ABO-GROUP, a listed engineering office, specializes in geotechnology, soil remediation, and environment. ABO-GROUP is internationally active through its Consultancy and Testing & Monitoring divisions. ABO-GROUP ensures that its clients receive a sustainable solution. Visit the ABO-GROUP website.www.abo-group.euFor a more detailed description of Group activities, please click here.
For more information:
Frank De Palmenaer
CEO ABO-Group Environment NV
[email protected]
T: +32 (0)9 242 88 66
Derbystraat 255, Maaltecenter Blok G, B-9051 Ghent (SDW), Belgium
This press release can be found on our website www.abo-group.eu
- ABO-Group Environment annual results for 2021
