COGELEC (EPA:COGEC) - Cogelec : H1 2019 Results.

Transparency directive : regulatory news

30/09/2019 17:40

PRESS RELEASE

                                H1 2019 Results
                            Solid growth in France
                     Fast-paced international development
                        Confirmation of 2021 ambitions

Mortagne-sur-Sèvre, France, 30 September 2019 - COGELEC (ISIN:
FR0013335742/ticker: COGEC), the French leader in access control systems for
building complexes, is today releasing its results for the first half of
2019.

The Board of Directors approved the 2019 half-year financial statements at its
meeting of 30 September 2019. These financial statements were audited, and the
associated certification reports are currently being prepared.

International accounting standard IFRS 16, concerning the treatment of leases
in the consolidated financial statements, came into force on 1 January 2019.
The COGELEC Group chose to apply this standard using the simplified retroactive
approach, in which there are no adjustments for the previous year. Note that
the implementation of IFRS 16 requires a change in the presentation of the
consolidated financial statements as approved at 30 June 2019, with the balance
sheet showing a liability in respect of future lease payments and an asset in
respect of rights-of-use. On the income statement, the lease expense previously
recognised under operating costs is now to be recognised partly as a
depreciation charge and partly as a financial cost.

                          H1 2019             Impact
IFRS EURm)                IFRS 16   H1 2018   Change    IFRS 16

Revenue                     19.0     15.7     +21.1%
  - France                  17.3     14.5     +19.0%
  - Exports                  1.7      1.2     +47.2%
Gross margin                11.9      9.7     +23.4%
As a % of revenue           63.0%    61.9%       -
Personnel expenses          -7.0     -4.4     +59.1%
External charges            -3.8     -2.9     +28.6%     + 0.3
EBITDA(1)                    1.0      1.9     -55.7%     + 0.3
Depreciation and
amortisation
allocations/reversals       -1.4     -0.9     +64.0%     - 0.3
Current operating income    -0.5      1.1     -42.5%
Operating income            -0.4      0.7     -64.5%
Financial result           -0.08     -0.15      NS         NS
Tax expenses                -0.9     -0.5     +68.6%
Net income                  -1.4      0.03       -

(1) COGELEC defines EBITDA as operating income before depreciation,
amortisation and impairment of assets, net of reversals.

Solid growth in France
First-half 2019 revenue amounted to EUR19.0m versus EUR15.7m in H1 2018, up
21.1%. This growth was driven in France by equipment sales (EUR14.2m, +18.8%)
and subscriptions (EUR4.8m, +28.7%). COGELEC now services over one million
homes. The gross margin was up 23.4% at EUR11.9m, representing 63% of revenue.
This growth confirms the increase in terms of subscribers.

In line with the ambitious recruitment plan both internationally and in France,
and in accordance with our expectations H1 2019 showed an increase in personnel
expenses to EUR7.0m vs. EUR4.4m a year earlier with the finalisation of
international recruitment (+40 persons) and the strengthening of the R&D and
production teams in France as part of Kibolt's industrialisation. COGELEC had a
total of 235 employees at 30 June 2019 vs. 167 employees at 30 June 2018.

With a dynamic innovation policy and the implementation of subsidiaries
internationally, external charges were also higher at EUR3.8m vs. EUR2.9m,
including in particular an increase in accounting, legal and consulting costs
(patent study) and an increase in communication and advertising budgets for our
operations in Europe.

In accordance with IFRS 16, rental expenses are restated for an amount of
EUR0.26m with an impact on allocations to depreciation, amortisation and
provisions of EUR0.3m.

EBITDA therefore came out at EUR1.0m and operating income at -EUR0.4m. The tax
expense is up, compared to the same period of the previous year, which
benefited from a deferred tax income. Net income showed a loss of -EUR1.4m.

At 30 June 2019, shareholders' equity stood at EUR17.8m vs. EUR19.5m at 31
December 2018. Financial debt was higher at EUR8.6m vs. EUR7.9m at 31 December
2018, including EUR1.8m, in accordance with IFRS 16. The Group ended H1 2019
with a gross cash position of EUR14.9m.

2019: COGELEC is implementing its roadmap, in accordance with the strategic
plan

The strategy announced at the initial public offering is progressing as
planned:

- The opening of subsidiaries and the recruitment plan in 5 target countries
   in Europe (Germany, Belgium, Luxembourg, Netherlands and United Kingdom)
   are in the completion phase. The Group now has 53 fully operational
   employees internationally;

- The launch of new products with, in particular, the marketing of the Kibolt
   universal key which has been very favourably received and whose initial
   sales are expected before the end of the 2019 financial year;

- The strengthening of the R&D teams for the development of new product
   ranges intended for building complexes such as the Connect.it solution for
   connected building halls, digital interactive display tables or the
   connected letterbox label.

Over the whole of 2019, COGELEC will benefit from the ongoing solid growth of
Intratone in France and the intensive commercial activity implemented in the
Group's European operations.

Longer term, COGELEC has confirmed its target of achieving revenue of EUR90
million by 2021.

The financial report for the 2019 interim financial statements has been made
                        public and filed with the AMF.
            It is available in English on the Company's website at:
              https://www.cogelec.fr/en/investors/documentations/

                                Upcoming events
                 Third quarter 2019 revenue: 24 October, 2019

Contacts

Cogelec
Véronique Pochet
Chief Financial Officer
+33 (0)2 72 67 00 91
investors@cogelec.fr

Actifin, Financial Press Relations
Jennifer Jullia
+33 (0)1 56 88 11 19
jjullia@actifin.fr

Actifin, Financial Communication
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 brand.

COGELEC has already outfitted 1 million homes, out of a potential total of 15.4
million homes in France. COGELEC is an international group also offering its
solutions in Germany, the United Kingdom, the Netherlands, Belgium and
Luxembourg.

Based on an indirect distribution model, combined with very close-knit
relations with end clients (social landlords and building complex management
associations), COGELEC posted revenue of nearly EUR34m in 2018.
COGELEC is listed on Euronext, compartment C and is listed on the CAC SMALL,
CAC MID & SMALL and CAC ALL TRADABLE indices.

For more information: www.cogelec.fr

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