COGELEC (EPA:COGEC) - Cogelec : H1 2018 Results.

Transparency directive : regulatory news

01/10/2018 17:45

PRESS RELEASE

                                H1 2018 Results
                               Revenue: EUR15.7m
                       Current operating income: EUR1.1m
   Continued international development and initial success stories Enhanced
                financial structure thanks to a successful IPO

Mortagne-sur-Sèvre, France, 1 October 2018, COGELEC (ISIN: FR0013335742/
ticker: COGEC), the French leader in access control for collective housing, is
today publishing its results for the first half of 2018.

The Board of Directors approved the 2018 half-year financial statements at its
meeting of 28 September 2018. They were subject to a limited review by the
Statutory Auditors. The interim financial report is available on the Company's
website (www.cogelec.fr).

IFRS (EURm)                H1 2018                H1              Change
                                                 2017

Revenue                     15.7                 14.4              +8.9%
Gross margin (value)        10.5                  9.2             +14.1%
Personnel expenses          -4.9                 -4.2             +15.8%
External expenses           -3.3                 -2.4             +36.5%
EBITDA                       1.9                  2.5             -26.8%
Current operating
income                       1.1                  1.5             -27.8%
Operating income             0.7                  1.5             -53.5%
As a % of revenue            4.5%                10.4%               -
Net income                   0.03                 0.8                NS
As a % of revenue            0.2%                 5.7%               -

H1 2018 results in line with our expectations

During the course of H1 2018, COGELEC successfully completed its IPO on
Euronext, raising a total of EUR41.7m on the primary and secondary offering.

As previously announced, first-half 2018 revenue amounted to EUR15.7m versus
EUR14.4m in H1 2017, up +8.9%. This growth was driven by Intratone sales and
subscriptions. COGELEC now services over 925,000 housings.

The gross margin climbed 66.8% over the first half on the back of a favourable
product mix.

The rise in personal expenses can be attributed primarily to investments in the
development of our international business (which generated more than EUR880k
over the first half, including external expenses) and the expansion of our R&D
teams, with the recruitment of 6 engineers and the opening of an office in
Nantes. Since the IPO, the Group has hired 8 employees in Germany and
inaugurated a showroom to get our foot in the door as quickly as possible on
this market. COGELEC has also hired 4 employees in the UK, 2 in Belgium and is
in the process of setting up a subsidiary in the Netherlands.

COGELEC currently has 11 sales representatives for Europe, with another 5 set
to arrive in early October, in line with its recruitment plan (target: 23 sales
reps by the end of the year).

External expenses were up EUR0.8m in the first half to EUR3.3m (increase in
fees and communication/advertising expenses associated with the Company's
development in Europe and new product launches).

Current operating income came to EUR1.1m, versus EUR1.5m in H1 2017, and net
income totalled EUR0.03m in H1 2018.

At 30 June 2018, net financial debt was down EUR9.3m, with shareholders' equity
of EUR20.9m and a substantial increase in the closing net cash position to
EUR18.9m.

COGELEC thus boasts a robust financial position, giving it a solid foundation
to pursue its client acquisition strategy both in France and across Europe.

Growth prospects on buoyant markets

Drawing on its substantial innovation momentum, the Group will be launching a
button-intercom system for small building housings, allowing it to address 100%
of the market as opposed to 30% now (small building complexes make up 70% of
the global market).

On the international front, the Group has enjoyed commercial success by
securing several contracts in Germany, most notably with the country's three
main social housing landlords. The Company's sales teams have signed deals to
manage the access control systems for 10 social collective housings in the
Benelux, and for 4 such complexes then 4 private co-owned associations in the
UK.

In accordance with the strategy announced in conjunction with the IPO, COGELEC
is forging ahead with its expansion in France with a broader offer, rolling out
the Intratone solution in 5 targeted European countries, and preparing to take
Kibolt to market in France from Q1 2019, followed by Europe.

Upcoming events
Publication of Q3 2018 revenue: November 15, 2018 after market close.

Contacts

Cogelec
Stéphane Vapillon
Chief Financial Officer
+33 (0)2 72 67 00 92
investors@cogelec.fr

Actifin, financial media relations
Jennifer Jullia
+33 (0)1 56 88 11 19
jjullia@actifin.fr

Actifin, financial communications & PR
Ghislaine Gasparetto
+33 (0)1 56 88 11 22
ggasparetto@actifin.fr

About COGELEC

COGELEC is the French leader in access control systems for building complexes.
As early as 2007, COGELEC created the first universal wireless intercom
solution under the Intratone(r) brand. This unique offering boasts a disruptive
economic model which simultaneously includes equipment, an intercom solution
and an online management tool.

COGELEC has already outfitted 850,000 dwellings, including 150,000 new
dwellings in 2017, out of a potential total of 15.4 million dwellings in
France.

Present on the export market for five years, COGELEC also offers its solutions
in Germany, the United Kingdom, the Netherlands and Belgium through existing
subsidiaries or those currently being launched.

Based on an indirect distribution model associated with a strong local
relationship with end customers (social housing landlords and co-owners'
associations), COGELEC posted solid performances with revenue up nearly 17% to
EUR30.6m in 2017, for current operating income of EUR5m and net income of
EUR2.9m. COGELEC aims to triple its revenue to EUR90 million by 2021. For more
information: www.cogelec.fr

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