Amplitude Surgical – 2017-18 Annual Results

Sales of over €100 Million, up +8% Like-for-Like, and Solid EBITDA Growth of +17% - Seite 3

During the 2017-18 financial year, Amplitude Surgical continued to record solid growth in activity with sales totaling €100.3 million, up +7.5% in actual terms and +8.2% like-for-like (constant currency and scope).

This performance was the result of a sustained commercial momentum both on the French market, +9.4% to €63.6 million, where the Group is continuing to significantly outperform the market, and at international subsidiary level, +12.5% at constant currency to €26.6 million. Sales of Novastep products – innovative solutions for lower-limb (foot and ankle) surgery – have really begun to take off, and totaled €6.6 million over the year with growth of +50% overseas, notably on the American market.

The gross margin was 75.5%, a similar level to that recorded in 2016-17, with the benefits of the industrial integration, following the acquisition of Sofab, offseted by the negative currency effect, notably vis-à-vis the Brazilian real and the Australian and US dollars.

During the year, the Group continued its investments, notably human investments, to conquer and develop its target markets. Thus, at June 30, 2018, Amplitude Surgical had a workforce of 428 staff, compared with 368 at end-June 2017; a third of this increase is related to staff at companies acquired by the Group over the period. Personnel costs thus increased by +14% to €26.6 million. Simultaneously, for R&D, Amplitude Surgical stabilized the budget at €6.8 million and teams at 64 staff.

Given the stabilization of overheads, Group EBITDA was up +16.6% at €18.1 million, giving a +140 bp increase in the EBITDA margin to 18%. The weakening of the main currencies affected EBITDA to the tune of €0.4 million. Restated for the costs associated with the launch of the Japanese and US subsidiaries, EBITDA would be €19.9 million, a +21.3% improvement, i.e. 19.8% of sales.

The annual Core Operating Profit was €2.2 million, compared with a figure close to zero in 2016-17, despite non-recurring elements. There was a slight Operating Loss of €0.2 million, versus a loss of €1.0 million in 2016-17, following the writing down of a further €2.6 million provision of to cover the entire risk associated with its dispute with URSSAF (social security contribution collection authority) regarding tax on medical devices.

There was a financial loss of €8.1 million. Beyond a €6.5 million cost of debt, this figure also reflects net currency impacts of €2.8 million, due to the strengthening of the euro versus the US and Australian dollars and Brazilian real, and financial income of €1.2 million associated with the completion of the Sofab group’s acquisition at a lower price than anticipated.