2CRSi SA 2021/22 Consolidated annual results*
Strasbourg (France), 11 July 2022 - 2CRSi (ISIN: FR0013341781), a designer and manufacturer of high-performance energy-efficient IT solutions, releases its consolidated annual results for financial year 2021/22 ended 28 February 2022.
The Group turned in consolidated full-year revenue of €183.6 million in 2021/22, up 12.4% year-on-year despite an unfavourable comparison base stemming from the bankruptcy of its main client, Blade (revenue of €17.9m in 2020/21), early in the year (2 March 2021). The conditions created by Covid and Brexit generated additional costs and lead times affecting operational performance. Sales could have been significantly improved if relations with existing and prospective clients had gone ahead in a business as usual setting. The technological innovations of products designed and manufactured by 2CRSi and Tranquil-IT need to be seen, tested and validated. Furthermore, the Group continued its global expansion, opening a new Canadian subsidiary in 2021. As an international, or more precisely “multi-local” group, 2CRSi is capable of overcoming global geopolitical challenges: revenue earned in France made up just 13% of total revenue (vs. 16% last year) and the Group’s top 10 clients only accounted for 35% (vs. 43% in 2020/21). 79% of revenue is generated in the Group's countries of operation. The Group has no exposure to Ukraine, Belarus or Russia.
CONSOLIDATED ANNUAL RESULTS FOR FY 2021/22
2CRSi’s gross margin stood at 23.2%, compared with 20.6% in 2020/21. Despite a relatively stable number of employees (+4.56%), personnel expenses were up 20.6%, particularly due to an accounting reclassification at Boston Server and Storage Solutions (Germany). Excluding this impact, personnal expenses increased by 12%, in line with activity. External expenses increased by 16.8% over the year. Thanks to a boost in sales of services, EBITDA rose 29.8% year-on-year to €9.5m, i.e. an EBITDA margin of 5.2% of total revenue, up 70 basis points. Depreciation, amortisation and provisions amounted to €8.3m versus €6.6m the previous year With financial expenses dropping from €(5.0)m to €(3.0)m, Group net income (expense) improved significantly from €(4.2)m last year to €(1.6)m this year.
At the end of financial year 2021/22, inventories were up sharply to €56.6m, compared with €32.2m at 28 February 2021 (reflecting in particular the creation of strategic inventories of parts to address shortages and the recovery of Blade assets at the start of the year. Conversely, inventories were down slightly compared to end-August 2021 (€57.4m).
At 28 February 2022, 2CRSi recorded current financial receivables of €5.9m versus €28.1m last year, due in large part to payments (€10.5m) for the acquisition of Blade by hubiC (Mr Octave Klaba) and the recovery of the remaining equipment. In addition, the Group is continuing to reduce its bank debt, which fell from €38.8m to €28.0m. Net FCF held steady at €2.9m at 28 February 2022 versus €3.1m at 28 February 2021. In addition, on 4 July 2022, the Group recorded unused credit lines totalling €3.5m.
CHANGES IN GOVERNANCE: Lilla Merabet, former Vice-Chair of the Grand Est Region, in charge of Competitiveness, Digital Technology and the Excellence Division, and former Director of Fondation de France, will be recommended as a new independent director at the next AGM on 31/08/2022, replacing Dominique Henneresse, who resigned. A company director certified by the Institut Français des Administrateurs and Sciences Po, Lilla Merabet currently manages the Force Foundation for research and innovation in healthcare and regularly provides executive mentoring and transition management consulting services. Marie de Lauzon left her position as Deputy Chief Executive Officer on 6 May 2022 and resigned from her office as director on 9 July 2022. The company expresses its gratitude to Dominique and Marie for their hard work and service during their terms of office.
CURRENT FINANCIAL YEAR AND OUTLOOK 2CRSi boasted multiple major new commercial successes (https://investors.2crsi.com/fr/communiques-de-presse/) during the financial year spanning all regions of operation, including the record-setting €73m contract earned in March, a large order for thousands of servers in April, and developments in Germany, the United States, Africa, the Middle East and India. Thanks to the investments and recruitments made, and its capacity for innovation, 2CRSi is particularly confident it will be able to forge ahead with its expansion. Against this backdrop, the Group will detail its long-term vision by the end of the year when it presents its new strategic plan, “Mission 2027”, a profitable growth plan driven by the strong ambition of achieving 1% market share on the global IT server segment. * The financial statements were approved by the Board of Directors on Monday, 11 July and are currently being audited - END -
Next event: Annual General Meeting on 31 August 2022.
About 2CRSi Founded in Strasbourg (France), 2CRSi group develops, produces and sells customised, high-performance and environment-friendly servers. In the 2021-22 financial year, the Group generated revenue of €183,6 million. The Group today has around 400 employees and markets its offer of innovative solutions (processing, storage and network) in more than 50 countries. 2CRSi has been listed since June 2018 on the regulated market of Euronext in Paris (ISIN Code: FR0013341781). For further information please visit: www.2crsi.com.
Contacts
[1] Includes items associated with right-of-use assets (IFRS 16). Regulatory filing PDF file File: 2CRSi SA : 2021/22 Consolidated annual results* |
Language: | English |
Company: | 2CRSi SA |
32, rue Jacobi-Netter | |
67200 Strasbourg | |
France | |
Phone: | +33 3 68 41 10 70 |
E-mail: | investors@2crsi.com |
Internet: | www.2crsi.com |
ISIN: | FR0013341781 |
Euronext Ticker: | 2CRSI |
AMF Category: | Inside information / News release on accounts, results |
EQS News ID: | 1395527 |
End of Announcement | EQS News Service |
1395527 11-Jul-2022 CET/CEST