Friday 28 August 2020
The Board of Directors of Rekeep S.p.A. approves the Consolidated Half-year Financial Report at 30 June 2020
The Board of Directors of Rekeep S.p.A. examined and approved the Consolidated Half-year Financial Report at 30 June 2020.
The main reasons for the rise in Revenues and EBITDA in the first half of 2020 compared to the first half-year of the previous financial period are the consolidation of the results of subsidiary Naprzód SA, the leading company in the healthcare facility management sector in Poland, which was acquired on 31 October 2019, a veritable turning point in the Group’s international growth, as well as the acquisition of major contracts in France and Turkey. The half-year results, however, suffered from the serious adverse impact of the judgment handed down by TAR Lazio, which only partially accepted the appeal filed by the Company on 3 July 2019 against the fine imposed by the ICA in relation to the investigation (procedimento istruttorio) commenced in March 2017 against Rekeep and numerous players in the sector in order to determine whether the aforementioned companies entered into unlawful agreements in relation to the participation in the tender arranged in 2014 by Consip S.p.A. for the awarding of Facility Management services in certain premises that were mainly used as offices by Italian public entities. In particular, the judgment handed down by TAR Lazio confirmed the ICA’s decision on the merits, but partially accepted the appeal filed by Rekeep with respect to the criteria used in calculating the fine, setting the parameters for its recalculation and remanding the case to the ICA to recalculate the fine on the basis of these parameters. The Company, however, which will challenge the judgment handed down by TAR Lazio before the State Council, is certain that it has always conducted itself in compliance with market regulations. Therefore, even if Rekeep continues to have confidence in the correctness of its line of defence, it has deemed it advisable to set aside the maximum amount corresponding to the instructions provided in the abovementioned judgment, in a specific provision for risks recognised in the Interim Consolidated Financial Statements at 30 June 2020, also in view of the uncertainty surrounding the final outcome of the appeal that has been submitted.
Rekeep Group main Consolidated Results at 30 June 2020
At 30 June 2020, the Rekeep Group recorded Revenue of €509.7 million, up by 8.2% compared to €471.0 million in the first half of 2019. This increase was mainly attributable to the contribution given by the foreign Group subsidiaries.
EBITDA amounted to €55.2 million, showing an improvement of 10.1% compared to €50.2 million at 30 Net of the non-recurring provision for risks set aside following the judgment handed down by TAR Lazio that partially accepted the appeal filed by Rekeep against the fine imposed by the ICA in May 2019.June 2019.
Adjusted EBIT (Net of the non-recurring provision for risks set aside following the judgment handed down by TAR Lazio that partially accepted the appeal filed by Rekeep against the fine imposed by the ICA in May 2019) amounted to €30.1 million, substantially in line compared to €31.0 million at 30 June 2019. EBIT was negative for €52.1 million, including the non-recurring provision for risks recognised by the Parent Company Rekeep S.p.A. following the judgment handed down by TAR Lazio, which partially accepted the appeal filed by Rekeep against the fine imposed by the ICA in May 2019 and the recalculation of the amount of the fine.
The Net Result at 30 June 2020 consisted of a loss of €80.6 million, mainly owed to the non-recurring provision for risks set aside following the judgment handed down by TAR Lazio referred to above. The Net Result would consist of a profit of €1.6 million compared to €3.8 million at 30 June 2019, net of the aforesaid non-recurring provision.
The Net Financial Indebtedness at 30 June 2020 amounted to €332.4 million, showing an improvement compared to €366.6 million at 31 December 2019.
Business highlights
During the first half of 2020, the Rekeep Group won tendered contracts and renewed existing contracts generating new orders totalling about €387 million in the long term, showing an improvement of 43.3% compared to €270 million at 30 June 2019. In particular, the total value of the contracts awarded in foreign markets was about 38% of those gained during the period. Among the most important foreign awards note:
- new acquisitions and renewals of contracts for cleaning, catering and medical transportation services at local hospital facilities in Poland;
- the award of 6-year term contracts for cleaning services on SNCF trains in the Normandy-Paris St Lazare area in France.
On the domestic market, the Group gained orders for energy services in Intercenter lots at various Emilia Romagna local health units (ASL), substantial contracts for energy and heat management services with Ater Roma (the local popular housing agency) and, through subsidiary Servizi Ospedalieri, was awarded a number of laundering contracts at hospital facilities in addition to contracts for the sterilisation and supply of surgical kits with a value of about €29 million.
Finally, the contract was renewed for Global Service at TIM properties in the Private sector.
The Rekeep Group’s total backlog of tendered contracts and renewed existing contracts at 30 June 2020 was therefore equal to €2.9 billion, up by 12.0% compared to €2.6 billion at 30 June 2019.
Press release | Q2 2020 Results
