Tuesday 24 March 2020
Approved the draft Separate and Consolidated Financial Statements at 31 December 2019: fresh rise in revenues and profit margins, as well as in the order backlog
Revenue for the Rekeep Group was more than €1.0 billion (+ 6.0%). Ebitda came to €113.6 million (+2,5%).
Consolidated highlights for 2019
(compared to 2018 and adjusted by the effects of changes in accounting standards):
- Revenue: €1 billion (+6.0% compared to €949.9 million at 31 December 2018)
- Normalized EBITDA: €113.6 million (+2.5% compared to €110.8 million at 31 December 2018);
- Normalized EBIT: €73.6 million (+4.9% compared to €70.2 million at 31 December 2018);
- Net Profit: €3.4 million (compared to €15.8 million at 31 December 2018);
- Tendered and renewed existing contracts: €727 million (+12.3% compared to €647 million at 31 December 2018);
- Total portfolio of tendered and renewed existing contracts: €2.8 billion (+9.0% compared to €2.6 billion at 31 December 2018).
The Board of Directors of Rekeep S.p.A. examined and approved the draft Separate and Consolidated Financial Statements at 31 December 2019, which show an additional increase in revenues and profit margins, for the seventh consecutive quarter, as well as in tendered and renewed existing contracts and total portfolio.
“The 2019 financial year once again confirmed our Group’s strong trend of rising revenues and profit margins, thanks to the good performances recorded in all the last quarters. The numbers both of new contracts and of those in our total consolidated portfolio are also continuing to rise, a circumstance that makes us even more confident of the medium- to long-term development of our business,” stated Giuliano Di Bernardo, Chairman and Chief Executive Officer of Rekeep S.p.A. “As regards the situation caused by the worldwide spread of Coronavirus Covid-19, our Group remains fully operational. The personnel in our headquarters services and staff work remotely apart from the exceptions necessary to ensure our Company’s normal operations. The services we deliver in the healthcare area, both in Italy and abroad, which account for about 60% of our activities, are, in fact, absolutely essential for the functioning of hospitals and for providing fundamentally important services in support of medical care. Both Rekeep and our subsidiary Servizi Ospedalieri are responding to requests for enhanced services from public and private hospitals. “We are also continuing to work as normal in various sectors that provide essential services, such as telecommunications, large-scale retail trade or banking. On the contrary, some variations in business volumes may occur as a result of the closure of schools, museums, store chains, a part of the transport and private firms. On account of these interruptions or reductions in our activities, Group companies will make use of the various types of social shock absorbers provided by the Italian Government in order to ensure the continuity of employment of the workers involved and a reduction of costs consistent with the fall in the revenues for the period.”
Rekeep Group main Consolidated Results at 31 December 2019
As of 31 December 2019, Revenue for the Rekeep Group was more than €1.0 billion, up by 6.0% compared to €949.9 million in 2018. This rise was driven by the facility management business and by the laundering sector, as well as by the performance recorded by the Group subsidiaries.
EBITDA (Margine Operativo Lordo) came to €101.5 million, showing an improvement of 2.4% compared to €99.2 million at 31 December 2018. Net of non-recurring and start-up costs, Normalized EBITDA was €113.6 million, up by 2.5% compared to €110.8 million at 31 December 2018.
EBIT (Risultato Operativo) was €59.5 million, showing an improvement of 3.4% compared to €57.5 million in the previous year. Normalized EBIT, net of non-recurring and start-up costs, was €73.6 million, showing an improvement of 4.9% compared to €70.2 million in 2018.
Net Profit was €3.4 million at 31 December 2019 compared to €15.8 million at 31 December 2018. It should be noted that, however, with effect from 1 July 2018, the merger of CMF S.p.A. into its subsidiary Rekeep S.p.A. became effective and that, therefore, the Rekeep Group’s Net Profit for the 2019 financial year was not very significant compared to that achieved at 31 December 2018, since the latter included CMF S.p.A. in the scope of consolidation for two quarters only.
Net Financial Indebtedness at 31 December 2019 was equal to €366.6 million, substantially in line compared to €347.4 million at 31 December 2018. However, the figure for the 2019 financial year included the financial liability for operating leases following the first-time adoption of the new IFRS16 – Leases from 1 January 2019. Net of this accounting adjustment, Net Financial Indebtedness at 31 December 2019 would be equal to €323.7 million compared to €298.8 million at 31 December 2018 and substantially in line with €320.4 million at 30 September 2019.
Business highlights
During the 2019 financial year, the Rekeep Group won tendered contracts and renewed existing contracts for a long-term aggregate amount of about €727 million, showing an improvement of 12.3% compared to €647 million at 31 December 2018.
As of 31 December 2019, the Rekeep Group won tendered contracts, or renewed existing contracts, for €2.8 billion, showing a sharp rise (+9.0%) compared to €2.6 billion in the 2018 financial year.
