Lucibel: First-half 2014 Results in Line With Development Plan

RUEIL-MALMAISON, France, September 15, 2014 /PRNewswire/ --

• Consolidated revenues up 34% to €12.0m 
• Strong sales growth in France: +66% 
• Withdrawal from 'white-label' products trading activity 
• Strong increase in gross margin rate from 34% to 46% 
• A negative €3.6 million at the EBITDA level, reflecting the Group's investment and structuring efforts in preparation for its future growth

 

Lucibel, a specialist in LED (light-emitting diode) lighting solutions, has posted its results for the first half of 2014.  

    EUR millions (consolidated IFRS data, unaudited) H1 2014 H1 2013 % change
    Revenues                                          12.0     9.0     +34%
                                     of which France  10.6     6.4     +66%
                              of which International   1.4     2.6     -45%
    Gross margin                                       5.6     3.1     +81%
                                  as a % of revenues  46.3%   34.4%
    Operating expenses                               (10.3)   (6.2)    +65%
    Current Operating Result                          (4.8)   (3.2)    +50%
                                 of which EBITDA [1]  (3.6)   (2.4)    +52%
    EBIT [2]                                          (4.8)   (3.2)    +48%
    Financial income (charges)                        (0.8)   (0.1)   +665%
    Corporate tax                                      0.9      -      n/a
    Net result                                        (4.7)   (3.3)    +41%

Strong sales growth in France, and a slowdown in international business largely attributable to the withdrawal from a 'white-label' products trading activity  

In France, the first half of 2014 saw a 66% increase in revenues to €10.6 million, versus €6.4 million for the same period of 2013. All the Group's B2B commercial branches contributed to this performance, highlighting the pertinence of the solutions-based approach developed by Lucibel for professional market segments in which the value of LED technology can be optimised. Procédés Hallier, a company specialising in lighting for museums and luxury boutiques, was included in the Group's scope of consolidation following its acquisition on 31 December 2013 and contributed some €1.4 million to first-half 2014 revenues.

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1. EBITDA=Current Operating Result adjusted for non-cash items (notably depreciation and amortization costs, payments in shares)

2. EBIT=Earnings before interest and corporate tax

At the international level, the performance was more nuanced but its growth potential remains intact thanks to Lucibel's extensive network. The Group's international subsidiaries generally continue to experience substantial business volatility from one half-year period to the next, given their still moderate size. Besides, The Group decided in the course of 2013 to withdraw from its 'white-label' products trading activity, which relates mainly to European clients, to concentrate on distributing Lucibel's products. This logical move causes a dip in European sales excluding France, with revenues down from €1.6 million in the first half of 2013 to €0.4 million for the same period of 2014, but improves margins further out.

The Lucibel Middle East subsidiary, set up in 2013, continues to enjoy rapid development, with revenues up 60% to €0.6 million in the first half of 2014. Overall, international business generated revenues of €1.4 million in the first half of 2014, down 45% from the €2.6 million reported for the same period of 2013.

Lucibel took advantage of the first half of the year to reorganise its commercial teams in Belgium and Spain to make the most of the potential offered by these regions. In addition, as part of its strategy of rolling out its international development in stages, Lucibel is preparing to open a sales office in Singapore, having confirmed the potential offered by this market and the local interest in its products. The development of Lucibel's business with major international clients, as highlighted by the recent contracts signed with PSA (see press release issued on 18 July 2014), is also likely to bolster Lucibel's export activity: following the success of the products installed in the first 20 dealerships, PSA is planning to deploy Lucibel's products for export in the coming months.

Significant gross margin growth and operating expenses rising as the Group's scope of consolidation expands 

Thanks to growth in new generation product sales, the optimisation of its industrial processes and the integration of companies acquired in 2013, the Group's gross margin reached 46.3%, versus 34.4% in the first half of 2013, marking a very significant gain of almost 12 percentage points.

In the months ahead, the Group will continue its industrial transition towards a model combining 'offshoring' for standard products, with production handled by its partner Flextronics, and 'nearshoring' for client-required adaptations and specific products. This differentiating strategy will translate notably into the start-up of operations at the Barentin site (Seine-Maritime), previously operated by the Schneider Group (see press release issued on 13 May 2014). The first product runs will come off the assembly lines in October, with volumes increasing progressively until the end of the year.

At the EBITDA level, Lucibel posted a negative €3.6 million for the first half of 2014, reflecting the investment and structuring efforts currently underway that are essential for the achievement of the Group's development goals. The growth in operating expenses is notably attributable to the significant increase in the Group's scope of consolidation, following the inclusion last year of Cordel (from 1 March 2013) and then Procédés Hallier (from 31 December 2013). Lucibel has also built up its expertise and resources in terms of central functions, in preparation for the challenges ahead as it expands. The Group's workforce numbered 210 as of 30 June 2014.

After amortisation, depreciation, provisions and other income and charges, the Group's EBIT was a negative €4.8 million. After interest and deferred tax income related to the acquisition of Cordel, the Group's bottom line showed a net loss of €4.7 million for the first half of 2014. 

Balance sheet strengthened prior to the Group's Alternext listing 

After deducting the first-half net loss, the Group's shareholders' equity stood at €1.3 million as of 30 June 2014. Its equity has since been increased by €17.1 million via transactions carried out after the half-year accounting closing, ahead of the admission of Lucibel's shares to trading on Alternext Paris (see press release issued on 15 July 2014).

The Group launched a €7.6 million private placement among new French and international investors, with the support of its existing institutional shareholders (Aster and CM-CIC Capital Innovation). Alongside this fundraising operation, the company converted into shares all of the 1,200,000 convertible bonds issued in December 2013, in accordance with the terms of the bond issuance agreement. This conversion lifted Lucibel SA's equity by a further €9.5 million.

Following these two transactions, Lucibel's share capital comprises 7,546,201 shares, on an undiluted basis. The funds raised and the Alternext listing will enable Lucibel to sustain its organic growth, particularly by expanding its sales and marketing network in France and internationally, to pursue its targeted acquisition strategy and to boost its capacity for innovation.

A product range undergoing continuous innovation 

Thanks to its internal R&D and Product Development teams, Lucibel is constantly enhancing its range to enable its clients to benefit from ongoing improvements in LED technology, notably in terms of energy efficiency. The recently-launched new generation of spotlights (Powerlights) have already attracted their first orders. Moreover, Lucibel has been noting a high interest from its customers for its Tubular LED, a waterproof product designed notably for underground car parks. Lastly, the Group has extended its offering with innovative solutions integrating the LiFi technology which allows data transmission through to the light output.

Lucibel will present its new products at a number of international trade fairs coming up this autumn in Belgium (HVAC & ECL in Brussels, 17-18 September 2014), Turkey (LED & LED Lighting Exhibition in Istanbul, 25-28 September 2014), Italy (Illuminotronica in Padua, 9-11 October 2014), Morocco (Elec Expo in Casablanca, 15-18 October 2014) and the UK (LuxLive in London, 19-20 November 2014).

Outlook 

In view of the trends observed since the beginning of the year, the Group looks set for another year of robust growth. Thanks to this, coupled with controlled operating expenses, Lucibel believes that it can meet its target of achieving breakeven at the EBITDA level in 2015.

In the words of Lucibel Chairman and CEO Frédéric Granotier, "The growing interest in LED lighting shown by major companies suggests that we are approaching the point at which this technology will start to be systematically adopted. Our strong sales growth in France, which remains our main market, proves that our solutions-based approach allows us to compete favourably with the traditional lighting players.

Our current efforts in terms of innovation, investment and structuring lay the foundations for our future growth. In the months ahead, Lucibel intends to demonstrate through its product innovation that the scope for LED technology applications extends well beyond lighting and that our Group is a fully-fledged player in these new key markets".

Next financial publication 

28 October 2014, after the market closing: third quarter 2014 revenues 

Furthermore, Lucibel will be meeting investors at the Mid Cap Event on 2-3 October (Paris, France - Palais Brongniart) then at the Clean Green Event on 12-13 November (Paris, France - Espace Pierre Cardin).

About Lucibel 

Lucibel is a French innovative company which designs new-generation lighting products and solutions based on LED technology in France and markets them in almost 30 countries. For further information, please visit the company's website http://www.lucibel.com

Lucibel is listed on Alternext Paris/Ticker: ALUCI/ISIN code: FR0011884378 

Lucibel is eligible for French equity savings plans (PEA), SME equity savings plans (PEA-PME) and innovation investment funds (FCPI) 

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APPENDICES 

CONSOLIDATED INCOME STATEMENT (IFRS, unaudited) 

                  Amounts in thousands of euros                30.06.2014 30.06.2013
    Revenue                                                        12 012      8 954
    Purchases consumed                                            (5 716)    (4 996)
    External expenses                                             (4 207)    (2 992)
    Employee expenses                                             (6 409)    (3 777)
    Taxes and duties                                                (168)       (97)
    Net additions to amortization, depreciation and provisions      (667)      (633)
    Other income and expenses from operations                         399        374
    Operating profit (loss) from ordinary activities              (4 756)    (3 167)
    Other operating income and expenses                               (6)       (45)
    Operating profit (loss)                                       (4 762)    (3 212)
    Share of profit (loss) of equity-accounted entities              (36)       (35)
    Operating profit (loss) after share of net profit (loss)
    of equity-accounted companies                                 (4 798)    (3 247)
    Income from cash and cash equivalent                                3        (1)
    Cost of gross financial debt excluding bond loan                (139)       (60)
    Cost of convertible bond loan                                   (576)          -
    Cost of net financial debt                                      (712)       (61)
    Other financial income and expenses                              (38)       (37)
    Net financial income                                            (750)       (98)
    Corporate income tax                                              850         10
    Net profit (loss)                                             (4 698)    (3 335)
    Of which attributable to shareholders of the parent           (4 701)    (3 324)
    Of which attributable to non-controlling interests                  3       (11)

CONSOLIDATED BALANCE SHEET (IFRS, unaudited) 

    ASSETS - in thousands of euros 30.06.2014 31.12.2013
    Goodwill                            8 512      9 495
    Intangible assets                   3 844      2 169
    Property, plant and equipment         387        314
    Equity-accounted entities               -          -
    Loans and deposits                    137        119
    Deferred tax assets                     4          4
    Total non-current assets           12 884     12 101
    Inventory                           6 038      4 070
    Trade receivable                    6 365      7 453
    Other current assets                2 565      1 446
    Current tax receivables               163         83
    Cash and cash equivalents           3 156      9 306
    Total current assets               18 287     22 358
    TOTAL ASSETS                       31 171     34 459

CONSOLIDATED CASH FLOW STATEMENT (IFRS, unaudited) 

                            Amounts in thousands of euros             30.06.2014  30.06.2013
    Consolidated net profit (including amount attributable to non-controlling

    interests)                                                            (4 698)     (3 335)
    Share of profits of equity-accounted entities                             36          35
    Net additions to amortization, depreciation and provisions (excluding
    impairment of current assets, which is recognized in "Change in trade
    receivables" and "Change in inventories" below)                          412         492
    Share-based payments                                                     478         161
    Gains/(losses) on disposal of assets                                       5          39
    Cash flow from operations after the cost of net
   financial debt and taxes                                               (3 767)     (2 608)
    Elimination of cost of net financial debt                                712          61
    Corporate income tax income/(expenses)                                  (850)        (10)
    Cash flow from operations before the cost of net financial debt and

    taxes (A)                                                             (3 905)     (2 557)
    Corporate income tax paid                                               (123)        245
    Change in inventories                                                 (1 967)        375
    Change in trade receivables                                              753      (1 336)
    Change in trade payables                                               1 226         719
    Change in other operating assets and liabilities                        (524)     (1 199)
    Cash flow from operating activities (B)                               (4 540)     (3 753)
    Cash flow related to the purchase of intangible
    assets and property, plant and equipment                                (164)       (107)
    Capitalized development expenses                                        (328)       (204)
    Proceeds from the sale of intangible assets and property, plant and

    equipment                                                                  -          13
    Cash flow related to loans and deposits                                   (9)         (8)
    Investment in equity-accounted entities                                    -         (51)
    Proceeds from the sale of non-current financial assets                     -          16
    Net cash flow from business combinations                                   -        (890)
    Cash flow from investing activities (C)                                 (501)     (1 231)
    Capital increases, net of issuance costs                                  41       6 060
    Repayment of borrowings and financial liabilities                       (528)       (546)
    Issuance of borrowings and financial liabilities                           7         207
    Issuance of convertible bond loan                                          -           -
    Change in financial liabilities from factoring                          (505)        188
    Net interest expense paid                                               (162)       (113)
    Cash flow from financing activities (D)                               (1 147)      5 796
    Impact of movements in exchange rates (E)                                  2           7
    Net change in cash and cash equivalents (B+C+D+E)                     (6 188)        819
    Opening cash and cash equivalents (*)                                  9 307       1 347
    Closing cash and cash equivalents                                      3 119       2 166
    * Including bank accounts in credit shown in the statement of financial
    position under "Current financial liabilities"                  30/06/201436 30/06/2013-

 

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