09/21/2020 | Press release | Archived content
Travagliato (BS), 21 September 2020 - Today, the Board of Directors of Antares Vision approved the consolidated Six-monthly Financial Report as at 30 June 2020.
Emidio Zorzella, Chairman and CEO of Antares Vision: 'The first half of the year was marked by the COVID-19 health emergency, which affected all sectors, and certainly caused us to slow down, as well. In any case, our business showed a good level of resilience: the results have exceeded expectations and confirmed the solidity of our value proposition and the strength of our vision. Our industrial journey continues without hesitation: we established a new branch in Germany, we acquired two companies that are of strategic importance for our business (Tradeticity in tracking and Convel in inspection technologies), and we signed an important partnership with IMA. The current situation, however, remains highly complex. Although short-term uncertainty remains, we have increased faith in our flexibility and ability to be responsive to change; we have an increasingly clear and concrete vision of the journey towards the development of our industrial plan'.
Massimo Bonardi, CEO and Technical director of Antares Vision: 'The COVID emergency left its mark on the global economy and brought to the surface new priorities, such as the health and safety of people; as a consequence, it has ascribed a new role to technology, as a new way of facing and meeting these new needs. Our mission to protect products, people and brands is, therefore, absolutely consistent with the need for safety, integrity, transparency, and sustainability. That is why we are ready to face any development with the passion and enthusiasm that are our trademarks, wishing and hoping that gradually we will reach a new normal'.
Main consolidated results as at 30 June 2020
The Consolidated Interim Financial Statements were drafted in accordance with the international accounting standards and present a Value of Production of EUR 63.3 million, essentially in line with the first half of 2019 (EUR 63.0 million). Revenues amount to EUR 58.3 million, also thanks to the contribution of FT System (which turned out to be a successful acquisition that came at the right moment) and are comparable to the EUR 59.2 million of the first half of 2019.
The Gross Margin, which amounts to EUR 46.9 million, +5.3% compared to EUR 44.5 million in the first half of 2019, confirms the improvement trend and represents a percentage of 80.3% of turnover (75.2% in the first half of 2019). The significantly improved margins (+5.1 p.p.) are linked to the growing and greater impact of the after-sales services component and to a decrease in commissions, and to the use of internal rather than external resources in the installation processes. This has been possible thanks to the prescient resource internalisation process which was launched last year as a conscious investment to deal with the growth that is expected for the near future and which allowed us to handle and partially overcome the restrictions in the mobility of people.
These developments also had a positive impact on Added Value (equal to EUR 36.7 million, +4.6% compared to EUR 35.1 million in the first half of 2019) which, in a similar manner, increased its percentage on the turnover by 3.8 p.p., going from 59.2% in the first half of 2019 to 63.0% in the first half of 2020.
The Earnings before interest, taxes, depreciation, and amortisation (EBITDA) amounted to EUR 15.3 million, compared to EUR 19.0 million in the first half of 2019, i.e. 26.3% of turnover (32.0% in the first half of 2019). This dynamic can be better understood if we take into account the exceptional nature of 2019 (as also evidenced by the high margins), which had benefited from the installation of higher quantities of tracking solutions meant to fight the counterfeiting of medicines following the entry into force in Europe of the EU-FMD regulation (9 February 2019). In fact, we can see a growth of 22% in the EBITDA in the first half of 2020 if we compare it with the figures for the second half of 2019 (EUR 12.6 million), which does not include the impact of the EU regulation and which, equally, includes the positive contribution of FT system since the last quarter of the year.
The Earnings before interest and taxes (EBIT) amounted to EUR 13.8 million, compared to EUR 18.3 million in the first half of 2019, i.e. 23.6% of turnover (30.8% in the first half of 2019). Similarly, the comparison with the EBIT of the second half of 2019 (EUR 11.3 million) shows an increase of 22%, despite the fact that the first half of 2020 incorporated higher amortisations linked to the capitalisation of development costs and to leased goods recorded in accordance with the financial method.
The data presented above do not include certain extraordinary items, reclassified below the EBIT and consisting of the costs incurred for extraordinary acquisition transactions (EUR 0.3 million), of extraordinary reorganisation costs (EUR 0.3 million), contractual contingent liabilities (EUR 0.9 million), as well as of the amortisations deriving from the Purchase Price Allocation (PPA) in relation to the acquisition of FT System (EUR 0.7 million).
The Adjusted Earnings before Taxes amounted to EUR 13.0 million, compared to EUR 17.3 million in the first half of 2019, i.e. 22.3% of turnover (29.2% in the first half of 2019).
The Adjusted Net Earnings amounted to EUR 10.3 million, compared to EUR 12.3 million in the first half of 2019, i.e. 17.7% of turnover (20.8% in the first half of 2019).
The Earnings before Taxes and the Net Earnings amounted to EUR 6.2 million (EUR 15.2 million in the first half of 2019) and EUR 4.6 million (EUR 10.6 million in the first half of 2019), respectively. These results, compared to their adjusted counterparts, other than the extraordinary items described above, also discount non-monetary items represented by the effect of the valuation at fair value of the warrants issued in 2019 on the occasion of the business aggregation with Alp.I (IAS 32) for a negative value of EUR 2.0 million, the net unrealised foreign exchange losses for EUR 1.4 million, the write-downs of financial derivative instruments for EUR 1.0 million, and the write-downs in connected undertakings for EUR 0.2 million. The same type of adjustments was recorded in the results of the first half of 2019.
The Shareholders' Equity amounts to EUR 122.0 million, an increase from EUR 117.6 million in 2019 and benefits from the profits of the financial year.
The Net Financial Position (excluding the effects of mark-to-market recording of warrants and of the valuation of derivatives at fair value) is positive and stands at EUR 9.0 million, compared to the positive value of EUR 15.3 million as at 31 December 2019.
The change in the Net Financial Position adjusted by EUR 6.3 million is the combination of a positive operational free cash flow of approximately EUR 13 million which financed a good part of the disbursement (excluding the liquid assets acquired) of EUR 14.2 million, linked to the acquisitions of Tradeticity and Convel, as well as investments in fixed assets, financial charges, and extraordinary monetary expenses.
The consistent operational free cash flow is due to the EBITDA and to the positive dynamic of the working capital which benefited from the care displayed in the collection of trade receivables.
Approximately EUR 65 million of new cash resources were collected by obtaining medium/long-term loans, negotiated with primary credit institutions at particularly favourable conditions, thanks to the excellent credit rating of Antares Vision, without guarantees and with minimal covenants with which the company complied fully. These cash resources were collected for the creation of a reserve for possible future important acquisition transactions.
Significant events following the end of the semester and business outlook
As has been shown, in the past few months we were faced with an unprecedented health emergency with the fast and global diffusion of COVID-19 and the consequent disruption on the life of people and undertakings. This inevitably caused a slowdown and extended deadlines; there were, however, no cancellations.
Antares Vision continues its development plan: the fact that the investments did not end after the end of the semester provides proof thereof.
On 30 July 2020, Antares Vision announced the participation in Neurala (US$ 290 thousand), a Boston-based innovative startup in Artificial Intelligence applied to visual inspection technologies. The journey of Antares Vision in Artificial Intelligence started last year with the acquisition of a minority investment in Orobix, a company founded in Bergamo in 2009, of which Antares Vision owns 37.5%. The investment in Artificial Intelligence is absolutely consistent with the technological development megatrends; the strategy is to boost current data inspection and management solutions through Artificial Intelligence with learning models that can add value in foreseeable terms.
In addition and in order to strengthen the emerging markets, on 17 August 2020 Antares Vision established a new branch in Shenzhen (China), which is added to the Hong Kong branch - which became operational in 2019 - further increasing the direct monitoring of the Chinese market, very sensitive to matters of quality and anti-counterfeiting, especially in the pharmaceutical and convenience goods sector.
Investor Relations Manager
In compliance with the new provisions of Borsa Italiana regarding amendments to the AIM Issuers Regulation, which envisage the appointment of an Investor Relations Manager, we would like to remind you that, on 8 April 2019, the Board of Directors appointed Alioscia Berto in this role. Antares Vision is assisted by IR Top Consulting in the capacity of IR Advisor.
Publication of the Six-monthly Financial Report
Antares Vision would like to inform you that the consolidated Six-monthly Financial Report as at 30 June 2020 is available to the public at the Company's registered office in Travagliato (BS), Via del Ferro 16, and is also published on the Company's website at www.antaresvision.com.
For further information
Antares Vision S.p.A.
Via del Ferro, no. 16
25039 - Travagliato (BS)
Alioscia Berto (CFO and Investor Relations Manager)
Tel.: + 030 72 83 500
E-mail: [email protected]
Nominated Adviser and Specialist
Equita SIM S.p.A.
Via Filippo Turati, no. 9
20121 - Milan
Tel.: +39 02 6204 1
E-mail: [email protected]
IR Top Consulting
Via Bigli, n. 19
20121 - Milan
Tel.: +39 02 45473884
Maria Antonietta Pireddu
E-mail: [email protected]
E-mail: [email protected]