Tuesday 28 March 2017
MFM, the Board of Directors approves the consolidated financial statements as of and for the year ended December 31, 2016
Strong increase in Profit and significant decrease in Net Financial Indebtedness.
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Strong increase in Profit and significant decrease in Net Financial Indebtedness for 2016 (as compared to 2015):
• Revenue: €929.1 million (compared to €955.7 million);
• EBITDA : €95.9 million (compared to €93.1 million);
• EBIT: €73.3 million (compared to €9.0 million);
• Profit for the period: €33.5 million (compared to a Loss for the period of €45.4 million);
• Net Financial Indebtedness: €194 million (improving from €242 million).
Our 2015 consolidated results were adversely affected, to a significant extent, by the €48.5 million provision for risks and charges that we had set aside in 2015 following the sanction issued against us by the Italian Competition Authority (“ICA”). Excluding the effect of the partial release of such provision in 2016, profit for 2016 would have been €17.2 million.
The meeting of the Board of Directors of Manutencoop Facility Management S.p.A. (“MFM”), chaired by Mr. Marco Canale, examined and approved the Consolidated Financial Statements and the Financial Statements for 2016, which registered a significant growth in Profit for the period.
“Our 2016 results were solid, with a significant increase in Profit for the period, which will allow us to continue to generate cash” – said Mr. Aldo Chiarini, Manutencoop Facility Management S.p.A.’s CEO – “our goal is therefore to continue the growth process we have already started, by exploring new business opportunities which will allow our Group to enter a further growth phase, also for the upcoming years.”
Our 2016 results were affected, especially with regard to EBIT and Profit for the period, by the €16.3 million net reversal to the provision we had set aside in 2015 in connection with the ICA decision, following the ruling of the Administrative Regional Tribunal based in Rome, as confirmed by the Italian State Council on March 1, 2017, which substantially reduced the sanction issued by the ICA against us on the basis of an alleged infringement of competition rules in the context of a tender arranged by Consip in 2012 for the provision of cleaning services for school buildings.
In particular, MFM had set aside in its 2015 financial statements the amount of the entire sanction, equal to €48.5 million, which, following the ruling of the Administrative Regional Tribunal, was reduced to €14.7 million.
Excluding the effect of the partial release of such provision in 2016, profit for 2016 would in any event have increased, totalling €17.2 million, compared to €3.1 million in 2015 , primarily due to the positive effects of the cost saving initiatives we have put in place for the past few years.
Main consolidated results as of and for the year ended December 31, 2016
For the year ended December 31, 2016, total revenue for the MFM group was €929.1 million, representing a 2.8% decrease from €955.7 million in 2015, primarily attributable to the difficult market and macroeconomic conditions.
EBITDA (margine operativo lordo) increased to €95.9 million from €93.1 million in 2015.
EBIT (risultato operativo) increased to €73.3 million from €9.0 million in 2015.
Profit for the period was €33.5 million, representing a 173.9% increase from a Loss for the period of €45.4 million in 2015. Excluding the effect of the partial release of the abovementioned provision for risks in 2016, profit for 2016 would in any event have increased, totalling €17.2 million, compared to €3.1 million in 2015 (adjusted to exclude the effect of the provision we originally made for the entire value of the ICA’s original sanction), primarily due to the positive effects of the cost saving initiatives we have put in place for the past few years
Net Financial Indebtedness for 2016 was equal to €194 million, a significant improvement from 2015 (€242 million), primarily due to the reduction in the average collection time of trade receivables from our customers.
Business highlights
In 2016, the MFM group won tendered contracts, or renewed existing contracts, for an aggregate amount of approximately €651 million, compared to €742 million in 2015.
As of December 31, 2016, the MFM group’s total backlog, including both renewals and new contracts, amounted to €2,845 million, in line with the backlog as of December 31, 2015 (€2,847 million).
