Approves preliminary Consolidated Financial Statements 2013.
The Board of Directors of Biesse S.p.A. during today’s meeting in Pesaro has approved the preliminary financial statements for the financial year ended 31.12.2013.
The Consolidated Results achieved by the Biesse for the 12 months of 2013 are as follows:
- Net revenues € 378.4 million (-1.2% compared with the same period of 2012)
- Value Added € 146.9 million (+4.2% compared with the same period of 2012) representing a margin on revenues of 38.8% (36.8% in 2012)
- Value Added net of non-recurring items € 143.6 million representing a margin on revenues of 37.9%
- EBITDA of € 34.3 million (+51.9% compared with the same period of 2012) representing a margin on revenues of 9.1% (5.9% in 2012)
- EBITDA net of non-recurring items was € 31.0 million representing a margin on revenues of 8.2%
- EBIT of € 18.1 million ( € 0.3 million in 2012) representing a margin on revenues of 4.8%
- EBIT net of non-recurring items was € 15.1 million representing a margin on revenues of 4.0%
- Pre-tax profit of € 14.6 million (negative result of € 5.1 million in 2012) representing a margin on revenues of 3.9%
- Net Profit of € 6.4 million (negative result of € 6.5 million in 2012) representing a margin on revenues of 1.7%
Net Financial PositionThe Group Net Financial Position at 31 December 2013 shows Net Debt of € 23.9 million representing an improvement of € 27.4
million compared to the position at end-June 2013 and of € 26.5 million compared to the situation at end-September 2013. The
delta compared to the position at end-December 2012 was positive for € 32.3 million, due primarily to cash flow generated by the
management of net operating working capital (which has fallen in absolute value to a record low).
Geographical breakdown of revenuesThe geographical breakdown of Group net sales at the end of 2013 is as follows:
- Western Europe 37.5% (39.6% in 2012) of which Italy 11.2% (10.8% in 2012)
- Eastern Europe 18.8% (17.9% in 2012)
- North America 13.5% (10.9% in 2012)
- Asia Pacific 20.7% (19.2% in 2012)
- Rest of the World 9.5% (12.4% in 2012)
Capital employedGroup Net Shareholders’ Funds at 31 December 2013 was € 113.1 million (€ 110.1 million at 31 December 2012).
Net Invested Capital at end-2013 was € 137.0 million (€ 166.3 million at 31 December 2012)
Economic context – Order intakeAlthough clear uncertainties concerning the health of the global economy did not undermine the results achieved by Biesse in 2013, indications from the principal operating sectors remain substantially prudent and do lend full support to expansion of international demand. Diversification of the markets into which it sells has been one of the key elements of Biesse’s successful response to tackling the most recessionary phases, but possible turbulence in some of the geographical regions with the greatest growth potential could represent a tangible obstacle to further commercial penetration.
Some comfort may be taken from the market analyses provided by the trade associations Acimall and UCIMU in Italy and VDMA in Germany which report improvements in order intake and sales for 2013 and projecting growing –albeit moderately growing- optimism for 2014 (+4% + 5%). The analysis is particularly positive for the outlook for the Mechatronics division, the growth of which is closely tied to its capacity for product diversification and therefore of end-users. Biesse’s total order intake in 2013 was € 313 million, +7.8% compared to 2012, broadly similar to the figure for 2011 adjusted for “special” orders that were absent in 2013.
DividendsIn addition to approving the preliminary financial statements for 2013 the Board of Directors also examined the possibility of paying a dividend and discussed the magnitude of any dividend to be paid to Biesse shareholders. Taking into consideration the positive results achieved in the 2013 financial year, the Board of Directors of Biesse approved the proposed payment of a gross dividend of € 0.18 per share (representing a payout del 58,8% of the net profit of the parent company Biesse S.p.A. for 2013) which will be submitted for approval at the Ordinary Meeting of Shareholders called for 29 April 2014 at 09.30 (first convocation) with second convocation if necessary on 30 April 2014 at the same time (second convocation). The total cash payment for the company relating to the dividend as proposed would amount to € 4,843 million (net of treasury shares held by Biesse S.p.A. ) and, with reference to coupon no. 10, would go ex-dividend on 19 May for payment on 22 May 2014, record date 21 May 2014. The remaining net profit after distribution of the dividend will be allocated to the Extraordinary Reserve (parent company Biesse S.p.A.).
Corporate GovernanceToday’s meeting of the Board of Directors also approved the Corporate Governance Report of Biesse for the calendar year 2013 in accordance with article 123-bis of the TUF (Consolidated Financial Law), updated on the basis of the latest regulatory amendments.
Ordinary Meeting of Biesse shareholders:Having approved the preliminary Financial Statements for 2013, the Board of Directors called for an Ordinary Meeting of Biesse Shareholders on 29 April at 09.30 (first convocation) with second convocation on the following day if necessary. The agenda for the meeting includes the following items:
- Approval of the Financial Statements for the year to 31 December 2013, the Directors’ report on operations, the report of the Board of Statutory Auditors and the Independent Auditors’ report; and to discuss all matters arising therefrom. Presentation of the Consolidated Financial statements for the year to 31 December 2013;
- Payment of an ordinary gross dividend of € 0.1873 per share;
Three Year Industrial Plan 2014-2016On 3 March 2014 the Board of Directors of Biesse approved a new Three Year Industrial Plan for the period 2014-2016 which includes the following economic and financial characteristics:
- Consolidated revenues to grow at a CAGR of 7.0% from those reported in 2013
- Value Added to continue to improve (margin on revenues of 41.5% in 2016) ebitda (to rise to a margin on revenues of 13.8% in 2016) and ebit (to rise to a margin on revenues of 10.1% in 2016) both recovering sharply
- Net debt of less than € 20 million in 2016 (net of investments and dividends)
development of Biesse over the medium term, with a constant focus on technology and commercial expansion. The Plan that has been approved anticipates initial prudent growth in the 2014 financial year (particularly in the first half) when, it is expected, risks relating to so-called emerging economies could rise, with a stronger recovery in confidence in the two year period 2015-16.