Delta Drone - Sharp increase in operating result - The relevance of the strategic model asserts itself
30 Septembre 2020 - 6:00PM
Delta Drone - Sharp increase in operating result - The relevance of
the strategic model asserts itself
Sharp increase in operating
resultThe relevance of the strategic model asserts
itself
- Revenue for the 1st half of 2020: +16.8% to €
6.9 M
- EBITDA (1) (corrected for non-recurring items): € -0.9
M (€ -2 M at June 30, 2019)
- Sales/termination of loss-generating and non-strategic
activities
- First commercial successes thanks to the organization of two
divisions: “professional solutions” and “associated services”
- Accounts in line with the 2020-2021 strategic plan
- EBITDA: Operating income before depreciation and amortization
and provisions
Dardilly, September 30, 2020 at 6PM
(In K€) |
FY 2019 |
S1 2019 |
S1 2020 |
Turnover |
15 987 |
5 893 |
6 885 |
Other incomes |
1 561 |
695 |
1 224 |
Operating expenses (Purchases + ACE) |
8 477 |
3 638 |
3 833 |
ADDED VALUE |
9 071 |
2 950 |
4 276 |
Personnel expenses |
13 985 |
5 512 |
6 373 |
EBITDA (1) |
(4 914) |
(2 562) |
(2 097) |
Non-recurring expenses (strategic plan impact) |
|
480 |
1 167 |
OPERATING PROFIT before DAP* |
(4 833) |
(2 082) |
(930) |
Depreciation & provisions (2) |
1 995 |
996 |
853 |
OPERATING PROFIT (1) – (2) |
(6 909) |
(3 558) |
(2 950) |
Financial result |
513 |
553 |
(202) |
Exceptional result |
(1 356) |
(591) |
(51) |
Depreciation, amortization - Goodwill |
1 670 |
703 |
920 |
CONSOLIDATED NET RESULT |
(10 081) |
(4 544) |
(4 403) |
EQUITY and similar |
9 734 |
10 230 |
8 755 |
NET CASH |
1 817 |
3 494 |
2 158 |
*DAP: Depreciation and provisions
1 – The strategic model is now
establishedThe Group's activity now revolves exclusively
around two divisions: the "professional solutions" and the
"associated services" division. The “professional solutions”
division corresponds to a range of 5 systems: ISS Spotter (security
& safety), Countbot (warehouse inventory), Atmos (events),
Rocketmine (mines) and SafeSprayBot (decontamination).The
"associated services" division integrates all the support elements
of the value chain necessary for the operability of the systems:
operator training, regulatory management, installation, after-sales
service, maintenance in operational conditions. It also includes a
traditional private security activity that accelerates the
dronification of the sector.
As a result of this new organization, several
operations have been carried out since the start of 2020 and
sometimes later than June 30, the date the half-yearly accounts
closed, in part because of the constraints arising from the health
crisis:
- Sale of the Hydrogeosphere subsidiary,
- MTSI subsidiary on hold,
- Closure of the Delta Drone site in Moirans (38),
- Shut down of low value-added service activities in France
(daily missions with structural losses)
- Complete reorganization of the Delta Drone Africa subsidiary
(formerly Delta Drone Maroc)
- Reorganization of the Aer'Ness division, leading to the Interim
and Event activities withdrawing from the scope. Coincidentally,
Delta Drone now owns 85% of the Aer'Ness division focused on
private security,
- Relocation of the head office and opening of a center dedicated
to the production and assembly of systems in Dardilly, in an
independent building of 2,000 m2,
- Creation of a new Rocktemine Australia subsidiary, dedicated to
the mining sector,
- Signing of an agreement to bring Delta Drone South Africa
closer to the Australian company Parazero Ltd.
For the whole range of professional solutions,
business prospects are promising. Specifically, the first
commercial successes of the ISS Spotter solution should be
particularly commended. Indeed, 10 ISS Spotter automatic version
systems, soon to be assembled in the new production site in
Dardilly, are scheduled to be delivered and installed at customer
sites before the end of the year. They represent a cumulative
volume of activity of over € 1.5 M for the contracts total
lifetime.
2 – Significant improvement in operating
profitability
As expected, the Group keeps on improving its
operating structure with the increase in added value, which stood
at € 4.2 M compared with € 2.9 M for the first half of 2019 and €
1.0 M for the first half of 2018.In the first half of 2019, Delta
Drone reported an EBITDA (Operating result before depreciation and
provisions) of € -2.5 M which had to be restated for non-recurring
items (structural measures to lower operating costs through two
successive plans) and resulted in a “restated” EBITDA of € -2
M (cf. Press release of 09/24/19).It must be noted that, in
facts, the EBITDA for the first half of 2020 did amount to € -2 M,
which reflects the consistency and rigor of the analysis.Given the
various events listed above, the EBITDA for the first half of 2020,
which amounts to € -2 M, must be restated similarly for
non-recurring items resulting in a “restated” EBITDA of €
-0.9 M.Therefore, the operating breakeven is now in sight,
especially fostered by the development of sales of professional
solutions and associated services.
Regarding the consolidated accounting net
income, it should be noted that the loss of € -4,403K results in
the amount of € 1,773K from calculated charges (allocations)
without impact on flows.
3 – Soundness of the balance sheet
structure and confidence of institutional shareholders
Insofar as the sustainability of a company in
the start-up phase in an emerging market is essentially conditioned
by the level of cash flow and subject to the vagaries of access to
bank financing, Delta Drone has always favored, since 2014, a
measured recourse to debt mechanisms.Thus, as of June 30, 2020, the
amount of financial debt is very limited, representing only 24.8%
of shareholders' equity and similar. For information, almost the
entirety of this debt arises from debts contributed by acquired
companies.In line with this policy of prudence, Delta Drone has
only very moderately used the measures set up by the public
authorities related to the health crisis, whether it be State
guaranteed loan, deferral of charges, partial unemployment,
etc.After the entry on March 27, 2020 of the company OTT Ventures
as a new reference shareholder, a second meaningful sign of
confidence in the future of the Group materialized. During the
summer, between July and September, the company Nextstage, a loyal
shareholder of Delta Drone since 2013, exercised over 10 million
BSAy, despite a unit exercise price of € 0.075, much higher than
the current stock market price.
4 – Evolution of the boards of
directors
During its meeting, the Board of Directors acted
the resignation of Mrs. Anne Trotoux-Coppermann. On the Chairman's
proposal, the Board co-opted Ms. Nicole Anschutz as a new director.
Ms. Anschutz is Director of Communication and Brand of the Devoteam
group, one of the leading players in the digital transformation
sector.
5 – Confirmation of the 2020-2021 plan
objectives
The sharp reduction in operating loss observed
in the first half of the year, combined with the successful
commercial launch of the solutions, allows to consider reaching
operating breakeven. This is perfectly aligned with the objectives
of the 2020 - 2021 plan which is based on 3 key axes: a
consolidated turnover of € 30 M, a positive operating profitability
of 10% as well as 30% of the activity carried out outside
France.
The detailed half-year accounts are available on
the website www.deltadrone.com
About Delta Drone: The Delta
Drone Group is an international player in the field of civilian
drones for professional use. It provides a range of professional
solutions specifically designed for targeted sectors, as well as a
complete selection of related services. Delta Drone is listed on
Euronext Growth Paris – ISIN code: FR0011522168 Also listed on
Euronext Growth the BSA Y – ISIN code: FR
0013400991www.deltadrone.com
- PR_30092020_DELTADRONE_RS2020