GAM grows 17% in turnover and obtains a profit of 6.1 million euros in the first half of 2019.

17Feb

• The Company's sales grew by 17% to 71.9 million euros in the first half of the year, thanks to improved use of the machinery park and, especially, to the gain in the complementary rental business line where the Company continues to strengthen.
• EBITDA was 20.5 million, up 28%, including the positive impact of applying the IFRS 16 accounting standard, with a sales margin of 28%.
• GAM obtains a €6.1 million profit, with operating profit of 1.3 million euros, representing 37% growth.

Madrid, 29 July 2019. - The Spanish multinational GAM (General de Alquiler de Maquinaria, BME: GALQ) has presented its results for the first half of 2019, with 17% sales growth to 72 million euros, obtaining a net profit of €6.1 million.

The increase in sales is driven by the Company's business in Spain, which grew 23% and accounts for 75% of its revenue. The international segment also experienced 3% growth.

This sales improvement was achieved thanks to higher occupation levels in the machinery park and to strong drive among the complementary rental businesses, which the Company has been promoting for a long time. These business lines: The company is clearly differentiated from competitors in the distribution, purchase-sale, training, maintenance etc. services it provides.

Accumulated EBITDA grew 28% to 20.5 million euros, compared to 16 million euros in the same period in 2018, which was an improvement of two percentage points on the sales margin. It is thus worth highlighting the effect that the application of the new IFRS 16 on Leases in 2019 had on these figures. Isolating this effect, EBITDA grew 12% compared to the same period in 2018 and EBITDA margin was 18 million euros.

The improved turnover and margins resulted in increased Operating Profit of 37%, to 1.3 million euros, and yielded a net profit of 6.1 million euros.

Consolidated data

P & L	30/06/2019	30/06/2019	Var. S12019 Vs S12018
Sales	71.9	61.3	17%
EBITDA	20.5	16.0	28%
% S/Sales	28%	26%	+2 pp
EBIT	5.9	4.6	28%
% S/Sales	8%	8%
Non-recurring expenses	-0.9	-0.4	102%
Long-term debt financial expenses	-2.3	-2.2	6%
Tax	-1.4	-1.1
Net operating profit	1.3	0.9	37%
Items that do not involve cash outflow
Foreign currency exchange variations, and other	1.2	1.0	23%
BINS activation (tax credit)	7.2
Participatory loan financial expenses	-3.6	-3.4	4%
Net result	6.1	-1.6	484%

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