BIO UV GROUP (EPA:ALTUV) - FIRST-HALF 2019 RESULTS

Transparency directive : regulatory news

23/09/2019 17:45

PRESS RELEASE
Lunel, 23 September 2019

FIRST-HALF 2019 RESULTS

* Business growth of +65%
* Sharp rise in EBITDA amid ongoing strategic investments
* BIO-SEA backlog of EUR16.7m, o/w nearly EUR5m already deliverable and
  billable in 2019
* Strategic acquisition of Triogen Holdings aimed at ramping up growth in
  historic activities

BIO-UV Group (ISIN code: FR0013345493/Ticker: ALTUV), a specialist in UV water
treatment systems, announced today the release of its 2019 interim financial
statements.

The Board of Directors approved the 2019 interim financial statements at its
meeting of 23 September 2019. 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).

In EURk, at 30 June         H1 2019    H1 2018    Var.

Revenue                      8,074      4,891     +65%
Personnel expenses          (2,233)    (1,790)    +25%
Other operating income
and expenses                (5,312)    (2,757)    +93%
EBITDA                        522        345      +51%
Depreciation, amortisation
and provisions                (774)     (391)     +98%
Operating income (expense)    (245)      (47)      NA
Group net income (expense)    (139)       18       NA

Revenue growth of +65%

In the first half of 2019, BIO-UV Group recorded total revenue growth of +65%
compared with the first half of 2018.

This performance was driven by the combined effect of another sharp
acceleration in ballast water treatment business (BIO-SEA), which grew 340%
over the period, and the expansion of historic activities, thanks in large part
to exports.

Sharp rise in EBITDA amid ongoing strategic investments

Operating expenses continued to climb in H1 2019, keeping pace with
persistently robust new orders in the ballast water treatment business, and in
a bid to immediately meet client requests.

BIO-UV Group stresses that this strong momentum was fuelled by regulations,
calling since 2017 for all new vessels worldwide, and since 8 September 2019
for all existing vessels, to install a Ballast Water Management System (BWMS).

In this supportive regulatory environment, requiring substantial investments
for the Group to fully capture the associated momentum, BIO-UV Group improved
its EBITDA +51% from EUR345k in H1 2018 to EUR522k in H1 2019.

After recognising depreciation, amortisation and provisions, stemming in
particular from the initiation in September 2018 of amortisation of development
costs generated on the USCG certification process in the United States, an
operating expense of EUR(245)k was recorded in H1 2019 versus EUR(47)k in H1
2018. As a result, a net expense of (EUR139)k was booked in H1 2019 versus net
income of EUR18k in H1 2018.

A solid financial structure underpinning development

The Group boasts a solid financial structure to underpin its robust
development, featuring shareholders' equity of EUR16.6m and net debt of EUR2.1m
at end-June 2019 (excluding the convertible bonds issued in September) (1).

BIO-UV Group issues EUR3m in convertible bonds

In September, BIO-UV Group issued convertible bonds totalling EUR3m to
partially fund the acquisition of Triogen Holdings Limited, one of the global
leading specialists in the design and manufacture of ozone, UV and AOP
(Advanced Oxidation Process) water treatment systems(1).

BALLAST WATER TREATMENT BUSINESS: EXCELLENT VISIBILITY

BIO-SEA order pipeline of EUR16.7m, o/w nearly EUR5m already deliverable and
billable in 2019

The regulatory obligations imposed on global shipowners, combined with the
stellar reputation of BIO-UV Group for both the performance of its systems and
their double IMO and USCG(2) certification, have seen the Group capture a
substantial share of this global momentum.

At 10 September 2019, BIO-UV Group enjoyed enhanced visibility over its Ballast
Water Treatment business (BIO-SEA), not only for the fiscal year in progress
but also extending beyond, with total BWTS orders of EUR16.7m (an increase of
more than 50% since 30 June), EUR4.7m of which is billable in 2019 and EUR12M
billable in and after 2020.

With this backlog, coupled with the revenue recorded in the six months to 30
June 2019, the Group has already secured growth of more than 70% in the Ballast
Water Treatment business in fiscal year 2019.

This momentum is poised to continue, and even accelerate, with the entry into
force on 8 September 2019 of the regulation for existing vessels, requiring
global shipowners to install Ballast Water Treatment Systems on all ships in
their fleet.

(1) Press Release of 19 September 2019
(2) IMO: International Maritime Organisation - USCG: United States Coast Guard

HISTORIC ACTIVITIES: AN ACQUISITION FOR FASTER GROWTH

Strategic acquisition of Triogen Holdings Limited, a SUEZ Water Technologies &
Solutions (WTS) entity

In September, BIO-UV Group announced the acquisition of Triogen Holdings
Limited, one of the global leading specialists in the design and manufacture of
ozone, UV and AOP (Advanced Oxidation Process) water treatment systems(3).

In addition to buying Triogen, the Group also entered into a business contract
and a licensing agreement. Under the business contract, with an initial term of
four years, the company (a member of the SUEZ WTS division) has undertaken to
purchase a minimum amount of licensed products manufactured by the new entity
from BIO-UV Group, over a three-year period.

This deal presents BIO-UV Group with an opportunity to ramp up development in
its historic markets, thanks to the considerable synergies generated with
Triogen, including:

- More cross-selling opportunities, with access to new geographical areas, in
  particular in Asia and Europe;

- Complementary products and certifications, which will boost BIO-UV's growth
  potential in its historic activities. The acquisition will bolster BIO-UV
  Group's portfolio with the addition of ozone solutions and advanced oxidation
  process (AOP) technology, in which Triogen has built an international
  reputation. At the same time, Triogen will benefit from BIO-UV's leadership
  in UV technology to accelerate its growth in markets with strong demand.

Reiteration of 2022 ambitions

In light of its successful first-half 2019, BIO-UV Group reiterates its organic
growth targets for 2022, namely to achieve revenue of around EUR40m and an
operating margin in excess of 10% over the same period. A new roadmap will be
defined within the next few months including the acquisition of Triogen.

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 recreative 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 commercial
  and semi commercial community pool dechlorination 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.

BIO-UV Group has been granted the "Innovative Company" 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
Alexandre COMMEROT
+33 (0)1 56 88 11 11
biouv@actifin.fr

Press relations
Isabelle DRAY
+33 (0)1 56 88 11 29
idray@actifin.fr

(3) Press Release of 19 September 2019

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03/04/2023 19:00

BIO UV GROUP (EPA:ALTUV) - FIRST-HALF 2019 RESULTS

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