SECHE ENVIRONNEMENT (EPA:SCHP) Consolidated financial statements at june 30, 2010

Transparency directive : regulatory news

30/08/2010 17:40

Press Release

Changé, August 30, 2010

             Consolidated financial statements at June 30, 2010

Significant growth in activity: Revenues of EUR 193.0 million, up 8%
  - Healthier industrial markets
  - Balanced growth of the different divisions

Solid results

  - Healthy EBITDA growth, up 7% to EUR 47.4 million, or 24.5% of revenues
  - COI maintained at a high level of EUR 29.8 million or 15.4% of revenues -
    ICC representing 9.2% of revenues after applying revised IFRS 3
    (non-cash and non-recurring effect: EUR (5) million before corporation tax)
    Stronger capital position
  - Increase in cash flow (up 8%) and strong cash generation
  - Debt reduction confirmed and improved balance sheet ratios

Prospects reinforced and targets upgraded for 2010
  - 2010 targets: Revenues up 7% close to EUR 390m- COI close to EUR 65m(1)
  - Market opportunities and commercial dynamism: signing of a public services
    contract with the Urban Community of Strasbourg, worth EUR 420 million over
    20 years

Hime - Saur:
  - Return to growth: Revenues up 2% to EUR 759.8 million
  - Further increase in EBITDA: up 6% to EUR 86.9 million
  - Slight improvement in net income to EUR (28.2) million vs. EUR (29.5)
    million

Commenting on these results, Joël Séché underlined the following:
"Séché Environnement has provided further evidence of its robust, profitable
and cash-generating growth model. Within healthier markets, the Group has
experienced the sustained, balanced growth of its waste treatment and
reprocessing divisions.
Once again, it has published high operating results. If the impact of
non-recurring and non-cash expenses related to the application of revised
accounting standards is stripped out, Group net income would have jumped by 19%,
to EUR 11.9 million.
The increase in self-financing capacity has made it possible to continue with
the debt reduction process and generate abundant cash, while maintaining an
optimized investment level, especially in the field of renewable energies which
offer strong potential.
Séché Environnement has benefited from the regulatory
dynamics of its markets, which are rich in growth opportunities. This is
illustrated by the signing of the contract to manage and improve the energy
efficiency of the household waste incinerator for the Urban Community of
Strasbourg, a major public services contract won by the Group and which
significantly strengthens its commercial positions in Eastern France,
particularly in the Non-Hazardous Waste recovery markets. The contribution of
this contract in 2010 and the performance of the past six months have enabled
Séché Environnement to upgrade its revenue growth targets to +7% for the
current financial year and as soon as this year, to post levels of activity
comparable to those of before the crisis."

(1) vs. "stable revenues and current operating income in value terms", announced
on 15th March, 2010.

Head Office: Les Hêtres - BP 20 - 53811 Changé Cedex

Significant and balanced growth of the different divisions

Séché Environnement benefited from healthier markets in France during H1 2010.
Compared to a weak 2009 comparison, business during the past six months also
benefits from the full contribution of the energy recovery activities within the
Non-Hazardous Waste division.

In this context, the Group posted significant and balanced growth in its waste
treatment divisions in H1 2010.
The growth of the Hazardous Waste division (70% of consolidated revenues)
amounted to 8.2%, with revenues of EUR 134.1 million.

This good performance reflects:

* the dynamism of all the businesses in France (95% of consolidated revenues),
   underpinned by the robustness of the regulated markets (treatment of PCBs,
   decontamination activities, etc.) and the health of businesses involved in
   industrial activity (incineration, chemical purification, etc.). The division
   also benefited from commercial successes with its industrial customers, in
   its waste management outsourcing offerings, so-called "global offerings".
   Accordingly, the division's business in France rose by 8.6%, to EUR 123.5
   million;

* a better performance by the main international markets (5% of consolidated
   revenues), notably in Europe (Spain and Hungary), whereas activity remained
   depressed in Latin America. Overall, international revenues grew by 3.6% over
   the period, to EUR 10.6 million.

Revenues for the Non-Hazardous Waste division (30% of consolidated revenues)
amounted to EUR 58.8 million, representing an increase of +8.6% vs. H1 2009:

* over the period, the division experienced the full contribution of energy
   recovery activities, which were still coming on stream a year ago.
   Accordingly, revenues from the sale of electricity originating from biogas
   recovery rose to EUR 3.7 million at June 30, 2010 vs. EUR 2.5 million a year
   earlier;

* moreover, business for the period compares with a low point reached during
   H1 2009. Accordingly, if the contribution of energy recovery activities is
   stripped out, the division's revenues are up 6.8% compared with the same
   period last year. The division has benefited from the return of volume
   growth, in conjunction with the improved performance of industrial activity
   and regulatory and fiscal incentives (French TGAP, general tax on polluting
   activities) which favor sites that are certified and have an optimum energy
   efficiency rate.

Solid operating results

On the back of this good level of activity, Séché Environnement posted a 6.7%
rise in EBITDA to EUR 47.4 million, or 24.5% of revenues. This positive trend is
due primarily to the contribution of organic growth (EUR +3.4 million).

In terms of scope of activity, the gross operating margin remained at a high
level in France (25.5% of revenues vs. 25.7% of revenues a year ago) whereas it
contracted at international level linked to activity slowdown in Latin America
(8,4% of revenues vs. 11,9% of revenues at June 30, 2009).

The increase in current operating income (+3.8% to EUR 29.8 million or 15.4% of
revenues) reflects the growth in EBITDA. It also includes the one-off impact of
provisions in connection with operating risks, which are fully provisioned to
the tune of EUR 1.4 million.

Impact of non-recurring expenses related to the application of revised
accounting standards

Operating income amounted to EUR 24.5 million, or 12.7% of revenues. The trend
compared with H1 2009 is negatively impacted by EUR 5 million, due to the
effects of the application of revised IFRS 3, resulting in the booking under
expenses of the acquisition costs involved in the merger with the Hime Group.

If this non-recurring and non-cash item is stripped out, H1 2010 operating
income would have risen in line with current operating income, to EUR 29.5
million.

Net income of consolidated companies amounts to 9.2% of revenues

Financial income is positive and higher over the period, at EUR 1.5 million vs.
EUR 0.6 million a year ago. This favorable trend reflects:

* the reduction in the cost of debt, in conjunction with the reduction in net
   debt and the quality of hedging. The cost of net debt amounted to 3.2% over
   the period vs. 3.7% in H1 2009;

* the increased income on Hime convertible bonds (capitalization of
   outstanding interest), representing EUR 0.7 million.

Accordingly, the trend in the net income of consolidated companies (EUR 17.8
million vs. EUR 19.8 million) is primarily affected by the one-off effects of
applying revised IFRS 3 (EUR 3.2 million after corporation tax).

Slight improvement in Hime's contribution to consolidated net income (Group
share)

The variation in the share of associate companies (EUR -9.4 million vs. EUR -9.7
million a year ago) reflects the slightly positive trend in Hime's contribution
(EUR -9.3 million vs. EUR -9.7 million at June 30, 2009).

Net income (Group share) amounted to EUR 8.7 million or 4.5% of revenues (vs.
EUR 10.0 million for H1 2009).

If the application of revised IFRS 3 is stripped out, Group net income would
have risen by 19% to EUR 11.9 million, or 6.1% of revenues.

Increase in self-financing capacity, controlled growth in investments, ongoing
debt reduction and strong cash generation

During the period, net operating cash flow rose by 13.4% to EUR 34.6 million or
nearly 18% of revenues. This significant increase reflects improved operating
flows, mainly characterized by the increase in cash flow, and includes the
growth in net investments (6.6% of revenues), in conjunction with activity and
the ongoing investment in the renewable energy sector (representing EUR 3.3
million).

Net debt declined to EUR 225.9 million (vs. EUR 265.4 million a year earlier),
reducing the net debt/EBITDA ratio to 2.26 and the net debt/equity ratio to 0.66
(vs. respectively 2.70 and 0.76 a year ago).

2010 outlook reinforced - Strasbourg contract takes effect - Growth targets
upgraded

Against the backdrop of a still uncertain economic environment, Séché
Environnement has benefited from its specialist positioning in regulated markets
and markets with high entry barriers for waste treatment and recovery.

The strengthening of regulatory incentives in these markets has proved to be a
source of growth opportunities, underpinning the company's commercial momentum
with both its local authority and industrial customers, as testified by the
signature of a public services contract to manage and improve the energy
efficiency of the household waste incinerator for the Urban Community of
Strasbourg (CUS). The contract is worth EUR 420 million over 20 years.

This is the first significant public services contract that the Group has won
from a major local authority and strengthens Séché Environnement's commercial
positions in Eastern France, especially in the Non-Hazardous Waste treatment and
reprocessing markets where the Group had little presence.
In keeping with the pattern of the Grenelle de l'Environnement Round Table
policy (reduction of volumes of waste treated, improvement of energetic output
and power production), this operation illustrates the growth opportunities for
the Group resulting from the regulatory dynamics originating from the regulatory
dynamism.
This contract will contribute to the growth in H2 2010 revenues, to the tune of
around EUR 9 million.

The good level of activity recorded in H1 2010 reinforces the growth outlook for
the current financial year. As a result of these very favorable factors, Séché
Environnement has upgraded its revenue growth target to +7% for the current
financial year (i.e. total revenues close to EUR 390m) and expects, in these
conditions, recurring operating income of close to EUR 65 million.

Audited consolidated data in EUR m (IFRS)

At June 30                               2009      2010     Change
                                                           2010/2009

Revenue                                 178.2     193.0      +8.3%
EBITDA                                   44.4      47.4      +6.7%
Current operating income                 28.7      29.8      +3.8%
Financial income                          0.6       1.5        -
Net income from consolidated companies   19.8      17.8     -10.1%
Share of affiliates                      (9.7)     (9.4)       -
Group net income                         10.0       8.7     -13.0%

Financial statements approved by the Board of Directors on August 24, 2010

Hime - Saur

Further growth in operating profitability

EBITDA up 6% at EUR 87 million or 11.4% of revenues

At June 30, 2010, Hime's consolidated net income (Group share) showed a slight
improvement, at EUR (28.2) million vs. EUR (29.5) million a year ago.

The reduction in the net loss reflects:

* An improved level of activity, with consolidated revenues up 2.0% at EUR
   759.8 million (vs. EUR 745.2 million at June 30, 2009):
    > Water (EUR 603.8 million, up 1.1%): the business has benefited from the
      robustness of activities in France and the return to growth of the
      international operation (Spain);
    > Cleanliness (EUR 156.0 million, up 5.3%): the business has benefited
      mainly from the favorable price trend for secondary raw materials.

* A further rise in EBITDA to EUR 86.9 million, (+6%), representing 11.4% of
   revenues (vs. 11.0% a year ago) due to the rise in the prices of secondary
   raw materials in the Cleanliness business and the recovery of margins in the
   international operation;

* Current operating income up 19%, at EUR 30.2 million, in line with the
   growth in EBITDA;

* Control of financial income at EUR (64.8) million, with the reduction in the
   cost of net debt partially absorbing the higher interest expenses on
   convertible bonds;

* The reduction in tax income, in conjunction with the trend in pre-tax income.

Consolidated data in EUR m (IFRS)

At June 30                               2009      2010     Change
                                                           2010/2009

Revenue                                 745.2     759.8      +2.0%
EBITDA                                   82.0      86.9      +6.0%
Current operating income                 25.4      30.2     +18.9%
Financial income                        (64.1)    (64.8)       -
Tax income                                9.7       7.4     -23.7%
Group consolidated net income           (29.5)    (28.2)       -

The results presentation will be available
from August 31, 2010 (11.30am Paris time) at:

http://www.groupe-seche.com/majic/pageServer/1b0100000m/fr/
Presentations-SFAF.html

APPENDICES:
Consolidated income statement at June 30, 2010
Consolidated balance sheet at
June 30, 2010
Consolidated cash flow statement at June 30, 2010

Next results announcement:
Publication of consolidated revenues at September 30, 2010 on October 28, 2010
(after market closes)

About Séché Environnement

Séché Environnement is one of the leading players in the treatment and storage
of all types of non-radioactive industrial and household waste in France. Its
facilities enable it to offer high-quality global solutions that incorporate all
environmental requirements.

It is the leading independent operator in the country with a unique positioning
at the hub of the high value-added waste recovery, treatment and storage
markets.

The Group offers integrated specialized services:

   > treatment (by incineration, physical-chemical treatment and solvent
     regeneration) and processing for energy recovery of hazardous and
     non-hazardous industrial waste (HIW and NHIW);

   > storage of final residue comprised of hazardous or non-hazardous
     industrial waste (HIW and NHIW).

In April 2007, Séché Environnement acquired a 33% stake in Saur Group, the No.
3 player in the Water and Environmental Services sector in France. Since May
2008, Séché Environnement has held an option to purchase an 18% stake in Hime,
the parent holding company of Saur Group, allowing Séché Environnement to
assume ownership of Saur Group by May 2012.

Séché Environnement has been listed on Eurolist by Euronext since
November 27, 1997.

Eurolist - Compartment B - ISIN: FR 0000039139 - Bloomberg: SCHP.FP -
Reuters: CCHE.PA)

Contact

Séché Environnement

Manuel Andersen
Head of Investor Relations
+33 (0)1 53 21 53 60
m.andersen@groupe-seche.com

                                    Important notice

This press release may contain forward-looking information or statements. This
information represents either trends or targets at the date of the press
release's publication and may not be considered as results forecasts or as any
other type of performance indicators. This information is by nature subject to
risks and uncertainties which are difficult to foresee and are usually beyond
the Company's control, which may imply that expected results and developments
differ significantly from announced trends and targets. These risks notably
include those described in the Company's Registration Document, which is
available on its website at www.groupe-seche.com. This information there fore
does not reflect the Company's future performances, which may differ
significantly therefrom, and no guarantees can be given regarding the
fulfillment of any forecasts. The Company makes no commitment on the updating of
this information. More comprehensive information on the Company may be obtained
in the Documentation section of its website at www.groupe.seche.com. This press
release represents neither an offer of shares nor a solicitation in view of an
offer of shares in any country whatsoever, including the United States.
Distribution of this press release may be subject to the laws and regulations in
force in France or abroad. Persons in possession of this press release must be
aware of these restrictions and observe them.

APPENDICES

Consolidated income statement at June 30, 2010

En KEUR                               30/06/2009   30/06/2010

REVENUES                               178 168      192 994

EBIDTA                                  44 398       47 368

CURRENT OPERATING INCOME                28 693       29 779

OPERATING INCOME                        28 378       24 503

FINANCIAL INCOME                           610        1 509

Taxes                                   (9 218)      (8 185)

INCOME OF CONSOLIDATED COMPANIES        19 771       17 827

Share of income of affiliates           (9 745)      (9 360)

Minority interests                          59         (274)

NET INCOME (group share)                 9 967        8 742

Consolidated balance sheet at June 30, 2010

EN KEUR                                    31/12/2009   30/06/2010

NON-CURRENTS ASSETS                         591 928      567 868

CURRENT ASSETS (excl. cash and cash
equivalents)                                136 406      132 163

Cash and cash equivalents                    19 108       25 006

    TOTAL ASSETS                            747 441      725 038

SHAREHOLDER'S EQUITY                        359 685      340 010

Financial Debt                              264 346      250 896

Hedging instruments                           5 251        5 396

Provisions                                   17 235       19 134

Other non-current liabilities (> 1 an)      100 924      109 601

TOTAL LIABILITIES                           747 441      725 038

Consolidated statement of cash flows at June 30, 2010

En KEUR                                             31/12/09  30/06/09  30/06/10

CASH FLOW before tax and financial expenses         94 570    43 814    47 294

CHANGE IN WORKING CAPITAL REQUIREMENT
RELATED TO THE ACTIVITY                             -4 423     6 369     5 062

Tax paid                                           -18 051    -8 884    -4 286

NET CASH FLOW FROM OPERATING ACTIVITIES             72 096    41 299    48 069

Cost of acquisition of fixed assets                -30 757   -21 365   -14 192
Income from disposals of fixed assets                5 560       450     1 321
Net cash flow on acquisitions & disposals
of subsidiaries                                         96       807       -11

NET CASH FLOW FROM INVESTMENTS                     -25 100   -20 107   -12 881

Dividends paid to equity holders of
the parent co.                                     -11 130   -11 143   -11 154
Receipts and repayments of borrowings               -4 584     1 671   -13 493
Interests paid                                     -10 726    -5 219    -4 522
Other cash                                               1      -197        -3

NET CASH FLOW FINANCING ACTIVITIES                 -26 440   -14 691   -29 169

VARIATION IN CASH                                   20 556     6 501     6 019

Impact of changes in foreign exchange rates            -102      -74       110
OPENING CASH POSITION                                -1 832   -1 832    18 622
CLOSING CASH POSITION                                18 622    4 397    24 747

            Main Offices : Les Hêtres - BP 20 - 53811 Changé Cedex

                         Press Release of August 30, 2010

SECHE ENVIRONNEMENT's latest news

11/03/2024 21:02

SECHE ENVIRONNEMENT (EPA:SCHP) Consolidated financial statements at june 30, 2010

Transparency directive : regulatory news

SECHE ENVIRONNEMENT's latest news

Other stories