Delta Drone : Ten years after the creation of the company, net
income Group share is at break-even (€ 87 K)
DELTA DRONE
Ten years after the creation of the
company,
net income Group share is at break-even
(€ 87 K)
- Net income Group share is at break-even (+87 K€),
- The signed order book is close to €25million, made up mainly of
customers who are leading industrial groups worldwide.
- More than 70% of the activity is based on multi-year contracts
(2 to 5 years),which provides a good basis for medium-term
development,
- Debt is very low, and the group has a potential of €17 million
in additional equity resources, beyond the positive level of
cash.
- The subsidiary Delta Drone International, listed on the Sydney
ASX Stock Exchange (DLT: ASX), has significant growth potential and
is a significant growth driver in the southern hemisphere.
Dardilly, 30 September 2021
|
(In K€) |
FH 2021IFRS |
FY 2020IFRS |
FY 2020English GAAP |
|
TURNOVER |
6 987 |
13 417 |
13 417 |
|
Other products of the activity |
582 |
3 865 |
3 865 |
|
Purchases and inventory changes |
3 533 |
8 305 |
8 305 |
|
Personnel costs |
6 994 |
12 726 |
12 726 |
|
Other income and expenses from current operations |
268 |
549 |
549 |
|
EBITDA |
(3 226) |
(4 298) |
(4 298) |
|
Net depreciation allowances |
1 040 |
1 618 |
3 398 |
|
Net provisions and impairments |
(42) |
(139) |
(139) |
|
CURRENT OPERATIONAL RESULT |
(4 224) |
(5 778) |
(7 558) |
|
Other operating income and expenses |
(118) |
(2 841) |
(2 093) |
|
OPERATIONAL RESULT |
(4 342) |
(8 619) |
(9 651) |
|
Cost of net financial debt |
(101) |
(147) |
- |
|
Other financial income and expenses |
4 283 |
163 |
(582) |
|
RESULT BEFORE TAX |
(160) |
(8 604) |
(10 233) |
|
NET RESULT OF INTEGRATED COMPANIES |
(256) |
(9 233) |
(10 862) |
|
NET INCOME GROUP SHARE |
87 |
(9 956) |
(10 697) |
|
SHAREHOLDERS EQUITY |
20 948 |
13 757 |
10 356 |
|
NET CASH POSITON |
5 389 |
4 769 |
4 769 |
Note:Delta
Drone Group's consolidated financial statements are now presented
in compliance with IFRS standards. This change is justified by the
Group's international dimension and by a homogenization of
presentation standards with its Australian subsidiary Delta Drone
International, listed on the Sydney ASX Stock Exchange (DLT:ASX),
and the accounts are presented in IFRS standards. In addition,
since all listed companies in the sector, including in France,
present their accounts in IFRS, it appeared desirable to use the
same benchmark so that the Group's economic and financial
performance can be more easily compared and evaluated.
1 – The major fact of
the semester: net income group share is positiveWhile
Delta Drone celebrated its 10th anniversary at the beginning of
this year, the group's result is profitable for the first time in
its history. This is a historic turning point for the company,
probably also for the entire sector. Everything suggests that
comparable companies in the civil drone sector, worldwide, with
profit accounts must at best be counted on the fingers of one
hand!
The performance is all the more remarkable as it
is based exclusively on industrial bases, without the impact of
elements of an exceptional nature.It is therefore structural and
sustainable, beyond possible economic turbulence due to exogenous
constraints (health crisis, international geopolitical tensions,
shortage of components, etc.).
The Group's business model is now very clear, it
is based on a strategy of progressive dronification of targeted
sectors of global dimension, by means of professional solutions
complementary to traditional uses, particularly in terms of human
resources. It is therefore a model of gradual and non-disruptive
integration of high-tech tools in the service of greater efficiency
and saferworking conditions.
The maturity of this model required several
years of gestation, sometimes trial and error as in any very
exploratory approach resulting from innovative technologies. The
reasons for this evolution are simple:
- The sector of civilian drones for
professional use is entirely new and there was no reference model
to easily and immediately define what would be the main vectors of
success,
- A confusion has long persisted
between recreational drones and professional drones, leading to the
illusion of an instant and "easy" implementation, weighing on
prices,
- Any strategy must be part of a
global context, making the necessary investments to be financed,
not only commercial and marketing, but also regulatory, customs,
technological, etc.
- The civilian drone industry for
professional use is proving to be a "heavy industry", that is to
say highly capitalistic: it necessarily requires a very high amount
of financial resources in order to prosper and this, given a long
R&D process.
The success of Delta Drone's strategy is based
on professional solutions and associated services, tailored
specifically to target sectors of global dimension. It is not, and
could not be, based on drone technology alone. Indeed, the drone is
only a tool that must fit into a much larger whole, composed of
robotics, electronics, computer science, software and artificial
intelligence.In this respect, the parallel is striking if we look
at the IT sector: no one would think of imagining a computer (we
are talking here about hardware, hardware) empty of any operating
system, software, internet connection, nor without associated
training and maintenance.
It is based on the courage to have been able to
sell or stop activities that corresponded in a certain way to the
period of illusions of the sector, the one during which a simple
drone associated with a few image processing made believe in a
value-added activity, even though potential customers themselves
could easily master the same process at a lower cost.
It is also based on the benefits of a bold
policy of creating an ecosystem around Delta Drone, in particular
through partnerships and equity investments in promising companies
in the sector. These operations have never had an exclusively
financial purpose. On the contrary, they were betting on gradually
bringing out industrial synergies, combining talents and
know-how.
Finally, it is based on the constant desire to
create an international group, sometimes at the cost of investments
without a future in geographical areas in the form of a mirage
(USA). However, perseverance has made it possible to bring out
abroad two poles that are extremely promising for growth, in Africa
and Australia. Here again, the model was established on the basis
of a value-added offer, addressed to a specific market, that of
mines.
2 – Further development
will continue to require financial resources
As already mentioned above, the sector of
civilian drones for professional use is very capitalistic. In this
regard, it is no longer a question, for Delta Drone, of financing
losses, but of accompanying, supporting and amplifying development,
both technological and geographical.
In addition to the available cash (2.6 million €
at 24/09/2021), the Group still has a potential of €17 million in
additional resources, due to the Ornan contract signed in October
2020 with the American investment fund Yorkville Advisors.
It is true that this type of financing
inevitably leads to a phenomenon of dilution for shareholders.
However, no one knows today the extent of this dilution, since the
number of shares resulting from these mechanisms is directly
related to the level of the stock market price, and therefore to
the amount of the market capitalization: the higher the market
capitalization, the less the extent of the dilution. All features
of the Ornan contract are public and available on the Delta Drone
website (www.deltadrone.com). Similarly, a constantly updated
monitoring table, indicating in particular the number of shares
created and the number of bonds still to be converted, is also
available on the website.
At the same time, Delta Drone has almost no bank
debts. The Group therefore has a very solid balance sheet structure
in which equity and cash represent significant part of the balance
sheet total (61% and 16% respectively).
3 –
Detailed commentary on the half-year accounts
Simultaneously with the publication of this
press release, the complete half-year financial statements (balance
sheet, income statement and annex) are made available on line, in
French and English, on the company's website (www.deltadrone.com).
The reader will find all the information necessary for a complete
understanding of the half-year accounts. These accounts have been
the subject of a limited review and a report by the Statutory
Auditors.
However, two key points should be
remembered:
- EBITDA was negative at €3,226K,
divided into three divisions:
professional solutions (-2,480 K€), training
(-170 K€) and Mining professional turnkey solutions (-576 K€). For
the first two divisions mentioned, the performance observed is
essentially the result of a lack of invoiced turnover, in direct
connection with the various difficulties arising from the health
crisis. It is certain that the situation has disrupted business
projects that were well advanced before the crisis. Regarding the
third pole, which concerns the Australian subsidiary Delta Drone
International, the effects of the pandemic are also in question, to
which are added the first installation costs in Australia.
- Other financial income and expenses
were positive at €4,283K. They result from the inclusion at their
"fair value", as required in IFRS, of the holdings making up the
Group's investment portfolio. Far from being simple financial
investments, these investments in high-potential start-ups are the
result of an industrial approach, aimed at gradually creating an
ecosystem around Delta Drone, a source of multiple highly
operational synergies.
4 – Short-term perspectives: the exit
from the health crisis can only be gradual
Because of its roots on three continents, Delta
Drone must reason with a global vision of the current situation. It
is therefore clear that the pandemic is not evolving in the same
way in all regions of the world. It continues to severely disrupt
international travel and trade, it has also created a worrying
situation of shortage of certain components essential to the
manufacture of systems.
Despite this context, which remains tense,
- The first installations of the ISS
Spotter system (security solution) have been completed in France.
On the other hand, installations, although planned abroad (about
ten, especially in Africa), are still pending.
- The first Countbot missions
(warehouse inventory solution) have started and the mission
schedule is growing week after week, in France and Europe. However,
they remain dependent on the production constraints of the systems,
linked to the supply of components.
- The activity in Africa in the
mining sector (Rocketmine) is experiencing satisfactory
development, with the recent renewal of several major multi-year
contracts (South Africa, Ghana) and the opening of several new
countries (Namibia, Zambia). In Australia, the recent acquisition
of Arvista Pty Ltd is a decisive and indispensable step to expand
locally.
- The strategy of dronification of
the private security sector in France could experience a
significant acceleration, in connection with the difficulty for the
entire sector to recruit new security guards. Faced with this
shortage of human resources that is becoming structural, the offer
that consists in offering mixed teams combining physical security
agents and "cyber-agents", that is to say technological solutions
such as ISS Spotter, finds a new echo in the minds of
customers.
- The success of the first joint work
carried out by Delta Drone with several of these participations
leads us to believe that this synergy movement will greatly
increase in the coming months. In any case, they make it possible
to considerably strengthen the Group's supply capacity.
In conclusion of all these considerations,
consolidated revenue is expected to increase significantly compared
to the previous year for the full year 2021. In terms of results,
every effort is being made to ensure that the trend observed in the
first half of the year can be confirmed in the second half.
About Delta Drone: Delta Drone
Group is a recognized international player in the field of civilian
drones for professional use. It develops a range of professional
solutions based on drone technology as well as all associated
services that form a complete value chain.Delta Drone shares are
listed on the Euronext Growth Paris market – ISIN code:
FR0011522168 BSA Y – ISIN code: FR 0013400991www.deltadrone.com
| Investor
contact: AELIUMJerome Gacoin |
Press
contacts:OPEN 2
EUROPEMarie-Laure Laville |
| +33 1 75 77 54
65 |
+33 1 55 02 15 13 |
|
jgacoin@aelium.fr |
ml.laville@open2europe.comSarah Ousahla+33 1 55 02 15
31s.ousahla@open2europe.com |