BIO UV GROUP (EPA:ALTUV) - First-half 2018 Results

Transparency directive : regulatory news

18/10/2018 17:45

PRESS RELEASE
Lunel, 18 October 2018

* 30% increase in activity in the third quarter
* Order book of EUR6.4 m at 30 September, of which more than EUR3 m billable in
  2018
* Investment and structuring in the first-half to secure our outlook for 2018:
  o Full-year growth above 15%
  o EBITDA margin growth in the second half
* Reiteration of 2022 ambitions

BIO-UV Group (ISIN code: FR0013345493/Ticker: ALTUV), a specialist in UV water
treatment systems, announced today the publication of its 2018 interim
financial statements.

The Board of Directors approved the 2018 interim financial statements at its
meeting of 18 October 2018. They were subject to a limited review by the
Statutory Auditors. The interim financial report is available on the Company's
website (www.bio-uv.com).

Benoit Gillmann, Chairman & CEO and founder of BIO-UV Group, remarked: "After
our IPO in July we now have the necessary resources to help speed up our growth
dynamic. We also received a boost during the first-half with the USCG
certification which we obtained in the US in June. This certification
multiplies our potential for sales growth on the fast-expanding global ballast
water market, the initial effects of which are already evident. Naturally, the
full effects of these decisive developments are not yet evident in the first
half of the year. But a dynamic has been established. In the third quarter,
Group growth surpassed 30% and given our record high order book, notably in
ballast water treatment systems, we can already anticipate double-digit growth
over the full year. We are therefore forging ahead enthusiastically and
confidently with our business plan, which we expect to deliver solid growth and
profitability from 2018."

Investment and structuring in the first half

In EURk, at 30 June           H1 2018           H1 2017
Revenue                         4,891             5,668
EBITDA                            344               430
Depreciation, amortisation
and provisions                   (391)             (335)
Operating profit (loss)           (47)               95
Group net income                   18                 5

As anticipated, the first-half results do not reflect the sales momentum that
began to take effect in the second half. Nevertheless, during that transition
period, we succeeded in preserving both our EBITDA and net profitability.

This is all the more notable given the investment and team structuring required
in order to be in a position to take full benefit of the significant growth
potential on the Group's different markets.

To accompany this development, the Group can now rely on a stronger financial
structure, incorporating EUR10.2m (EUR8.6m net) from its IPO on the Euronext
Growth Paris at the start of July. At 30 September 2018, BIO-UV Group therefore
had a cash position of more than EUR7m.

Q3 2018: growth of 30%

The Group's programmed acceleration of growth already shows results in the
third quarter, with revenue of EUR3.4m, up 30% in relation to the third quarter
of 2017.

Several growth drivers are set to come into play over the coming months to
underpin this growth trend:

- International expansion (50% of revenue in 2017) is a key component of the
  Group's strategy. Backed by a network of agents and established business
  providers to ensure commercial reach in more than 65 countries, BIO-UV Group
  will focus in particular on key geographical areas like Asia. It was with
  this in mind that it opened a subsidiary in Hong Kong and recruited an
  experienced sales director, Steven Matthew (Lamor, Calgon Carbon, Stem
  Innovation) to oversee future sales growth in all its activities and a
  ramp-up of manufacturing in the region;

- A stronger presence at major international events. BIO-UV Group was
  present at the international aquaculture conference in August (Aqua 2018) and
  at the world's leading international maritime trade fair (SMM) held in
  Hamburg, Germany in September. In November, it will also participate in
  Pollutec, the international trade fair for environmental stakeholders, and
  Piscine Global, the world swimming pool exhibition. Each of these events is
  an opportunity for BIO-UV Group to increase its contacts and achieve a
  potentially rapid commercial transformation;

- Acceleration on the ballast water market. In a rapidly expanding ballast
  water market driven by strict regulations under which all new boats, and from
  September 2019 all existing boats, must be fitted with a ballast water
  treatment system, BIO-UV Group is perfectly placed to benefit from this
  growth market. Thanks to decisive competitive advantages, BIO-UV Group has
  already equipped more than one hundred vessels worldwide to date, including
  major ship owners like MAERSK Lines, MSC Cruise, CMA CGM and Louis Dreyfus
  Armateur, as well as shipyards like Damen, and is currently experiencing a
  ramp-up in its order intake. It is notably benefiting from its OMI and USCG
  certification, which only two other players in the world have obtained to
  date for their UV systems, and which a total of nine have obtained across
  all technologies.

Order book of EUR6.4 m at 30 September, of which more than EUR3 m billable in
2018

BIO-UV Group therefore enjoys excellent visibility at present, with an order
book at 30 September of EUR6.4m billable in 2018, of which EUR3m billable in
2018 and EUR3.3m billable from 2019.

Outlook for 2018: profitability and double-digit growth

On foot of this excellent visibility, BIO-UV Group anticipates total revenue
growth in 2018 of at least 15%, driven in particular by a sharp acceleration of
the ballast water treatment market, which should secure growth of at least 60%
over the full year.

This outlook, combined with cost control, should also enable an improvement in
EBITDA margin in the second half of 2018 in relation to the second half of
2017, and net profitability over the full year.

Reiteration of 2022 ambitions

Beyond 2018, BIO-UV Group reiterates its ambitions for 2022 to achieve revenue
of around EUR40m, and operating margin in excess of 10%.

About BIO-UV GROUP

Created in 2000, BIO-UV Group designs, manufactures and markets innovative
ultraviolet water treatment systems. The range of equipment developed by the
Group is aimed at several markets:

- The recreation market, on which BIO-UV Group is no. 1 in France and in Europe
  for UV water treatment in residential swimming pools, and for the public and
  semi-public community pool de-chlorination market;

- The municipal and industrial markets, on which specific ranges have been
  developed for applications such as: purification, effluent treatment,
  wastewater reuse, process waters, aquaculture, etc.;

- The ballast water treatment market, which has benefited since 2017 from a new
  international regulation requiring all ships to have equipment to treat their
  ballast water.

In 2017, BIO-UV Group generated revenue of EUR10.2 million and EBITDA of EUR1.1
million, representing an EBITDA margin of 11.1%. As of 31 March 2018, the Group
had 61 employees.

BIO-UV Group has been granted the "Entreprise Innovante" label by Bpifrance and
is eligible for the French "PEA-PME" investment scheme.

Contacts:

BIO-UV Group
+33 (0)4 99 13 39 11
invest@bio-uv.com

ACTIFIN, financial communications          ACTIFIN, financial press relations
Alexandre Commerot                         Isabelle Dray
+33 (0)1 56 88 11 11                       +33 (0)1 56 88 11 29
biouv@actifin.fr                           idray@actifin.fr

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