Friday 28 March 2025
Approved the draft Separate and the Consolidated Financial Statements at 31 December 2024
Good EBITDA growth thanks to foreign development and a NFP still impacted by the increase in the fair value of the Put Option granted to the minority shareholder of Rekeep Polska as a result of the subsidiary having gained in value.
The Board of Directors of Rekeep S.p.A. met today under the chairmanship of Claudio Levorato, and examined and approved the draft Separate and Consolidated Financial Statements at 31 December 2024, which show good EBITDA growth thanks to foreign development, and a NFP still impacted by the increase in the fair value of the Put Option granted to the minority shareholder of Rekeep Polska as a result of the subsidiary having gained in value.
Claudio Levorato, Chairman of Rekeep S.p.A., has stated as follows: “In a year of great uncertainty and complexity, Rekeep has demonstrated great strength and a capacity for growth in international markets that give us confidence for the future. The success of the debt refinancing, which allowed us to manage the Group's main maturity well in advance by substantially extending its term, has also demonstrated the strong appreciation the national and international financial community has for our work, with a demand equal to four times the offer for the New Bonds from approximately 180 European and British institutional investors, which has allowed us to increase the value of the bond issue, compared to that proposed at launch, and to improve the terms and conditions of the offer. Thanks to our ability to innovate, we therefore continue to face every challenge with courage and long-term vision, being confident that the results obtained will continue to be in line with the objectives declared to the market.”
INTRODUCTION
Revenue, EBITDA and EBIT were positively impacted by the out-of-court settlement agreement signed by the subsidiary Rekeep Saudi CO Ltd with the former customer OPS LCC to settle the disputes that had arisen between the parties in relation to the facility management services contract for the Riyadh metro. In particular, the agreement provides for the subsidiary to receive a compensation in the amount of €29 million, which was paid by the counterparty on 31 January 2025, and the waiver of the international arbitration procedure, involving both the subsidiary Rekeep Saudi and the parent company Rekeep, which was formally concluded in January 2025.
REKEEP GROUP MAIN CONSOLIDATED RESULTS AT 31 DECEMBER 2024
At 31 December 2024, Revenue for the Rekeep Group stood at €1.26 billion, up compared to €1.19 billion at 31 December 2023, mainly thanks to the Group's good performance in international markets. In particular, it is worth noting the growth of approximately 34% in turnover of the subsidiary Rekeep Polska in 2024 compared to 2023. Revenue stood at € 1.23 billion, net of the payment of compensation of €29 million to the subsidiary Rekeep Saudi CO Ltd following the out-of-court settlement of the international arbitration concluded with the counterparty OPS.
Adjusted EBITDA amounted to €155.9 million at 31 December 2024, up compared to €128.1 million at 31 December 2023. This increase was positively impacted both by the contribution given by the subsidiary Rekeep Polska and, as mentioned, by the out-of-court settlement agreement signed on 16 December 2024 by the subsidiary Rekeep Saudi CO Ltd, based in Saudi Arabia, with the former customer OPS LCC to settle the disputes that had arisen between the parties in relation to the facility management services contract for the Riyadh metro. After excluding this effect, EBITDA was €126.9 million, up by €16.5 million compared to EBITDA for the same period of 2023, which was €110.4 million, net of the positive effect of the tax credit of €17.7 million.
Adjusted EBIT amounted to €98.3 million at 31 December 2024, for the same reasons, up compared to €71.6 million at 31 December in the previous year. After excluding the effect of the transaction of the Saudi subsidiary, EBIT amounted to €69.3 million at 31 December 2024, showing an increase of €15.5 million compared to EBIT at 31 December 2023, which amounted to €53.8 million, net of the positive effect of the tax credit of €17.7 million.
Therefore, Net Profit stood at €1.2 million at 31 December 2024, showing an improvement compared to the Net Loss of €12.5 million at 31 December 2023.
Net Financial Indebtedness amounted to €527.2 million at 31 December 2024, compared to €461.0 million at 31 December 2023. This change was attributable both to an increase in the value of the contingent liability for the Put Option on the acquisition of an additional 20% stake in the share capital of the subsidiary Rekeep Polska following the adjustment to its fair value, and to an increase in net operating working capital. It should be noted that the value of Net Financial Debt does not include the positive effect of €29 million from the out-of-court settlement agreement signed by the subsidiary Rekeep Saudi CO Ltd and paid by the counterparty on 31 January 2025.
BUSINESS HIGHLIGHTS
As at 31 December 2024, the Rekeep Group won tendered contracts and renewed existing contracts generating new orders totaling about €370 million compared to €748 million at 31 December 2023. In particular, the value of the contracts awarded in the healthcare sector was equal to about 66% of total.
The Rekeep Group’s total backlog of tendered contracts and renewed existing contracts was equal to €2.7 billion at 31 December 2024 compared to €3.1 billion at 31 December 2023.
SIGNIFICANT EVENTS AFTER 31 DECEMBER 2024
On 20 February 2025, Rekeep successfully completed the refinancing of the main part of the Group's financial debt. In particular, following the finalization of the senior secured bond due 2029 for a total principal amount of €360 million at a rate of 9.00% p.a., payable every six months in arrears, with an issue price of 97.5%, the Company proceeded with the full early repayment of the previous senior secured bond due 2026, issued for a total principal amount of €370 million, plus accrued and unpaid interest, and additional amounts. The transaction made it possible to manage the main maturity of the Group's financial debt well in advance, thus allowing its term to be extended in a substantial manner.
