Half-year results, September 30, 2016

Operating loss limited to -€0.78 million

More positive outlook forecast for S2

Six-month period analysis:

• Hardware and Home Décor sales down


• Printing Activity continues to resist well 


• Operating losses limited to -€0.78 million thanks to the careful control of operating costs

Outlook 2016/2017:

• €1.3 million costs savings plan programmed to begin in Q1 2017/2018


• Positive sales forecasts and order backlog on October 31, 2016 standing at €15.4 million compared with €5.5 million in N-1


• Upturn in performance forecast in S2

Consolidated statement of income (April 1 - September 30, 2016)

On November 30^th, 2016, Prismaflex International board closed the accounts for the 2016/2017 SI period. The financial statements were subject to a limited audit review.

 
6 months
6 months


In € million
30.09.16
30.09.15


 
 
 


Total Sales
22.18
25.38


Current operating profit
-0.45
1.05


Operating profit
-0.78
1.05


Financial result excl. foreign exchange
-0.14
-0.18


Foreign exchange losses and gains
0.09
-0.26


Tax
-0.14
-0.14


Result of discontinued operations / equity method proportion
-0.09
-0.11


Net result
-1.07
0.36


Net consolidated result
-1.02
0.37


Cash flow
0.1
1.36


 
 
 


In € million
30.09.16
31.03.16


Consolidated equity capital
11.66
13.00


Net debt
7.63
7.02


Gearing
0.65
0.54

Significant points for the S1 2016/2017 period:

S1 2016/2017 results impacted essentially by 3 key factors:

1/ The global drop in sales (-€3.2 million) with notably:

• Hardware activity down €2.66 million. Sluggish analogue activity for the period and stable LED display sales levels,


• Home Décor activity down €1.09 million due principally to the launch of new product lines by a key customer and stop of aluminium supply.

Simultaneously, Printing activity continues to resist well and is up for the S1 period at €0.55 million.

2/ The increase in fixed and variable production costs for Printing and LED activities (investment in capacity and skills).

3/ The deployment of a costs savings plan (planed savings 1.3 million Euros) with staff cuts in all the Group's subsidiaries.

The impact on operating profit for the period is -€0.2 million (severance payments). The objective is to lower the company's breakeven point to a low cycle level. The first positive effects of the plan are forecast in Q1 2017/2018.

Operating profit stands at -€0.78 million, which is up on forecasts presented with the six-month total sales figures.

The financial result is up on N-1 with slightly lower financial costs and a foreign exchange gain of €0.09 million compared to a €0.26 million loss over the same period of the previous year.

Net result at -€1.07 includes taxes of €0.14 million and the company's share of the business losses at the Chinese JV of €0.09 million.

Overall, net consolidated result for the period stands at -€1.02 million.

Capital structure

Working capital needs at €7.97 million represents 18% of total sales, which is more or less stable compared to the figures for September 2015 (19%) and March 2016 (16%).

Gearing stands at 0.65. Consolidated equity capital stands at €11.66 million compared with €13.00 million on March 31, 2016. Net debt is at €7.63 million against €7.02 million on March 31, 2016. This includes a new real estate lease to increase production printing capacity in France.

Outlook for the year

On October 31, 2016, order backlog, mainly for Hardware, is high at €15.4 million against €5.5 million for the same period the previous year. This includes orders for street furniture and more importantly major orders for LED displays notably from a key German company with delivery planned for Q4 2016/2017 and S1 2017/2018.

S2 2016/2017 figures are expected to record an upward activity trend.

On December 2016, Prismaflex received an order confirmation for analog products in Russia for €2.15 million.

Forthcoming dates

• Conference call: Pierre Henri Bassouls CEO and Emmanuel Guzman, CFO will be available to answer your questions at 10 am on Thursday December 8, 2016. Please contact Actus Lyon on +33 (0)4 72 18 04 90.


• Press release: Q3 2016/2017 sales figures January 19, 2017 after closure

PRISMAFLEX INTERNATIONAL

OUTDOOR ADVERTISING SOLUTIONS MANUFACTURER AND WIDE FORMAT DIGITAL PRINTING

ISIN : FR0004044600-ALPRI - Reuters : ALPRI.PA - Bloomberg : ALPRI.FP

ALTERNEXT Paris

 www.prismaflex.com

Contacts:

Emmanuel Guzman - CFO - phone: +33 (0)4 74 70 68 00 - [email protected]

Amalia Naveira - Analysts/Investors contact - phone: +33 (0)4 72 18 04 92 - [email protected]

Marie-Claude Triquet - Press contact - phone: +33 (0)4 72 18 04 93 - [email protected]

Source: Actusnews