The NSE Group, which specializes in the design, manufacture and maintenance of high-tech electronic equipment specifically for defense, civil aviation, IT, medical care and railways, today has consolidated results for the 2021 fiscal year (ending December 31, 2021). Will be announced. ). NSE is listed on Euronext Growth in Paris.
Fiscal Year 2021 remained a difficult environment, and the health crisis continued to affect the activities of the Group, with delays in orders for design and integration activities, primarily from the second half of the year to 2022, and a constant disadvantage to the public. .. Aviation studies. However, NSE was able to mitigate these impacts by relying on the good performance of the service BU and its activities and the diversification of the target market, especially La Defense.
Therefore, sales in 2021 showed a slight decrease at 66.6ME.
During the year, the Group maintained structural operational rationalization measures and continued to implement industrial and commercial efficiency measures plans in priority areas. By working on operational excellence and cost-based improvements, we were able to maintain high levels of profitability, especially in the second half of the year. The final result for the fiscal year is 4.1 ME compared to 2021.
These very good results allow the Group to accelerate de-leveraging and achieve a net cash position of + 5.3ME (excluding rental debt), including a high gross cash position of 12.2ME.
In 2022, the Group remained attractive in the market, and Fiscal Year 2022 got off to a good start, especially with higher orders than the same period in 2021. Therefore, the Group will continue to grow its activities in 2022 while maintaining a high level of profitability.
In 2021, NSE achieved new robust operational performance. In 2021, EBITDA was € 8.2 million annually, with an EBITDA margin of 12.3% compared to revenue. However, this performance is slightly lower by 1.2 ME compared to 2020 due to the reduction of activity in 2 out of 3 BUs. NSE was able to manage and maintain operating expenses of 61.6ME compared to 62.6ME in the previous year. High level of profitability.
Personnel expenses (sales increased by 13%), which increased to support business growth in the first half of the year, stabilized in the second half and reached 25.2 ME (+ 9.6%).
After net depreciation and provisions fell from 2020 to € 2.4 million, the current operating profit for the year was € 5.8 million, compared to € 6.5 million in 2020.
The group generated operating profit of approximately € 5.8 million as of December 31, 2021, compared to € 7 million in 2020. This decline is partly explained by the decline in sales and the lack of net income of € 500,000. In 2020, linked to the sale of real estate (Cuers site).
With the annual cost of financial debt stable at 0.2ME, the financial results improved by 0.6ME thanks to the rise in exchange rates during the period.
After considering the mechanically reduced 1.6 ME tax amount (compared to the 2 ME tax amount at the end of fiscal year 2020), the Group’s net income was 2021 as the decline in sales affected operating profitability. Is up to 4.1ME.
Due to the significant improvement of WCR 8.9 ME as of December 31, 2021 due to the normalization of business results and accounts receivable for the current period, cash flow before net financial debt expenses was 8.1 ME, which is + 15.3 Activities for ME. These flows primarily cover flows related to -4.8 ME investments, including the acquisition of a minority stake in NSE Automatech in the first half of 2021, and investments related to 3,12 ME industrial recovery plans and normal development. I am.
Free cash flow generated in 2021 enables net repayment of 2.1 ME borrowings (including rental contracts). This includes the total repayment amount of 5.3ME.
Thus, total cash reached a high level of 12.2 ME in 2021 and the cash position after deducting financial debt (excluding IFRS 163) was 5.3 ME, an improvement of +9.2 ME compared to the previous year. Fiscal year 2020.
In 2022, Service BU will continue to drive the Group’s performance, especially thanks to the momentum of its overseas subsidiaries. Performance is also supported by the expected rebounds in the integrated BU under the impact of activity diversification resulting from recovery plans. Design BUs should also return to growth, especially in night flight “NVIS” correction activities with night vision goggles, as purchase orders are strong. In addition, the development of new products such as helicopter weapon control systems is on track to generate revenue from 2022.
To support the growth of its activities, the Group will pursue strategies based on developing new markets, increasing competitiveness and developing international offers. In this regard, current geopolitical disputes have the potential to generate new orders in the field of defense from customers of NSE, a major contractor.
NSE will also continue to implement ambitious industrial investment plans to support its diversification and development over the next semester. In particular, new versions of ERP in Services BU, and integrated BU.
NSE will also maintain strict control over expenses, which should enable it to achieve a profitable next fiscal year.
Note that NSE is also working on implementing a corporate social responsibility (CSR) approach in early 2021. This approach includes all teams and a rating system with specific actions on social environmental and governance (ESG) progress. schedule. The CSR report will be published at the end of the first half of 2022.
Next press release: Earnings for the first half of 2022, July 29, 2022 after market closure.