IBA Reports Full Year 2018 Results
21 Mars 2019 - 07:00AM
IBA Reports Full Year 2018 Results
Return to profitability in H2
Louvain-La-Neuve, Belgium, March 21,
2019 - IBA (Ion Beam Applications SA, EURONEXT), the
world’s leading provider of proton therapy solutions for the
treatment of cancer, today announces its consolidated annual
results for the 2018 financial year.
On July 20, 2018, IBA announced that it had
decided to explore new strategic alternatives for IBA Dosimetry
which could include a sale, merger, initial public offering, or
retention of the business. Following the announcement, IBA
initiated a disposal process and determined that all criteria of
IFRS 5 were met in order to present the assets and liabilities of
IBA Dosimetry as assets held-for-sale. As IBA Dosimetry is also a
separate operating segment, it also meets the criteria of
discontinued operations. Consequently the results of this activity
are presented on a separate line in the income statement as
“Profit/(loss) from discontinued operations” in 2018 and in the
comparative numbers for 2017. Active discussions are currently
ongoing on the sale of this division and the Company expects to
inform the market of the outcome of these discussions in Q2
2019.
|
FY 2018 (EUR 000) |
FY 2017 (EUR 000) |
Variance (EUR 000) |
Variance % |
|
|
|
|
|
PT & Other Accelerators |
208 440 |
236 485 |
-28 045 |
-11.9% |
Total Net Sales |
208 440 |
236 485 |
-28 045 |
-11.9% |
REBITDA |
7 782 |
-11 517 |
19 299 |
|
% of Sales |
3.7% |
-4.9% |
|
|
REBIT |
885 |
-17 260 |
18 145 |
|
% of Sales |
0.4 % |
-7.3% |
|
|
Profit Before Tax |
-5 152 |
-23 502 |
18 350 |
|
% of Sales |
-2.5% |
-9.9% |
|
|
|
|
|
|
|
Discontinued operations |
3 171 |
2 457 |
714 |
29.1% |
|
|
|
|
|
NET RESULT |
-4 401 |
-39 201 |
34 800 |
|
% of Sales |
-2.1% |
-16.6 % |
|
|
|
Olivier Legrain, Chief Executive Officer
of IBA commented:: “IBA made good
progress in 2018, having returned to profitability in the second
half of the year and achieving a positive REBIT for the full year,
despite the challenging proton therapy market. Seven Proteus®ONE
contracts were signed in the period with three starting to generate
revenues during the year. The double-digit growth in Proton Therapy
service revenues underlines our confidence in this expanding
revenue stream, and results were also boosted by record orders in
Other Accelerators. We have taken clear steps to strengthen the
business for the long-term as we focus on cementing our position as
proton therapy market global leader. This includes a company-wide
focus on cost control to help us achieve sustained
profitability.
“Despite the short-term unpredictability of the
timing of new contracts, the clinical evidence and real-life
experience with our proton therapy systems is driving expansion in
new and existing markets around the world. With our flexible
product offering, rapid installation capability and commitment to
constant innovation, IBA is well placed to benefit from future
market growth.”
Financial summary *
- Total 2018 revenues of EUR 208.4
million, down 11.9% (2017: EUR 236.5 million), now composed solely
of Proton Therapy and Other Accelerators. The decrease was
predominantly due to a slower PT market. Other Accelerators had a
33% increase in equipment sales, boosted by a record order
intake.
- Equipment and service backlog of
EUR 955 million, comprising an equipment backlog for Proton Therapy
and Other Accelerators of EUR 278 million at full year 2018
including upgrades and services backlog of EUR 677 million.
- Full year REBIT amounted to EUR 0.9
million vs a loss of EUR 17.2 million for the previous year. On a
proforma basis including Dosimetry numbers, REBIT for 2018 would
have amounted to EUR 5.4 million, largely ahead of the break-even
guidance that had been announced over the year. This strong
improvement was largely driven by a record order intake in Other
Accelerators, excellent performance in service and a reduction in
operating expenses as part of the ongoing cost cutting
initiative.
- Full year REBIT margin of 0.4%
versus -7.3% in the prior year (2.1% on a proforma basis vs -4%
LY).
- Dosimetry (discontinued operation)
net profit of EUR 3.2 million, up 29% (2017: EUR 2.5
million), driven by strong cost control and halting of depreciation
in accordance with IFRS 5.
- The Company moved into profit at
both REBIT and Net Income at the Group level in the second half
compared with the first half of 2018.
- Total Group loss of EUR 4.4
million, representing an 89% improvement versus PY (2017: EUR –
39.2 million), driven by the Group wide programme to reduce costs
and the absence of exceptional items.
- Net debt position of EUR -47.1
million (including cash position of Dosimetry for EUR 2.3 million)
at the end of 2018 compared to EUR -15.5 million at the end of
December 2017, driven for around half by temporary working capital
requirements and for half by a lease facility for IBA’s new
building. The Group has sufficient credit lines from its banks to
finance its cash flow requirements. Moreover, the improved 2018
financial results also allow the Group to meet the bank covenants
on its credit lines.
* The above numbers are
stated with Dosimetry as an Asset Held for Sale except when
explicitly mentioned otherwise
Business summary
- Order intake of seven rooms comprising seven Proteus®ONE*
solutions sold in the UK, Italy, China, Singapore and Belgium,
equating to 58% share of the overall market.
- Currently 21 projects have been financially activated and 37
rooms are under development, comprising 14 Proteus®ONE and 7
Proteus®PLUS*.
- The service business continued to grow, with 29 centers under
operation at the end of December 2018. Six IBA proton therapy
centers became operational during the period: Toyohashi, Japan;
Sapporo, Japan; Caen, France; Newport, UK; Groningen, Netherlands;
and Chennai, India at the start of 2019.
- Based on current activated contracts, 50 or more centers are
expected to be under operation by 2023.
- Significant progress towards sustained profitability through a
company-wide focus on operating expenses and cost-efficiency
measures.
- Opening of a new factory at IBA’s headquarters in
Louvain-La-Neuve to assist in the efficient production of IBA’s
technology and contribute to the overall reduction of costs.
- Market authorization received from the Brazilian Health
Regulatory Agency (ANVISA) for a Proteus®ONE single-room solution
during the period, expanding global reach of proton therapy.
- Positive developments reinforcing the growth potential for
proton therapy include:
- Evidence generation through an increasing body of publications
presenting the benefits of proton therapy for various
indications.
- On-going use and validation of the model-based approach at the
University Medical Center Groningen (UMCG) that show positive early
results. An increasing number of institutions in Europe, North
America and Asia are showing interest in this model.
- New treatment techniques such as ARC and FLASH demonstrate
significant potential patient benefits illustrated by the first
irradiation of a Spot Scanning Proton Arc (SPArc) plan at the
Beaumont Health Proton Therapy in Michigan and the first Flash
irradiation in an IBA gantry treatment room at the University
Medical Centre Groningen (UMCG) in The Netherlands.
- Continued commitment to develop clinically relevant proton
therapy treatment innovations to patients with the launch of the
Victoria Advisory Committee, a consortium of worldwide radiation
therapy experts to help define the future of Proton Therapy care,
at the American Society for Radiation Oncology (ASTRO) in
October.
- Hosting of the 8th Annual Proteus® User Meeting in Miami
providing a platform for open dialogue, technical and clinical
discussions, collaboration and real-time feedback from the world’s
largest and most experienced proton therapy community, with more
than 165 participants representing 40 sites in 17 countries.
Dosimetry As explained earlier,
the Dosimetry division has been accounted for as an Asset Held for
Sale at the end of FY18 and its net profit is included in the
P&L as a Discontinued Operation. Dosimetry showed a FY18 net
profit of EUR 3.2 million, up 29% (2017: EUR 2.5
million).
Dosimetry order intake remained close to prior
year levels, while sales were down 6.3% mainly due to slower
backlog conversion. Gross margin slightly decreased versus 2017,
whilst the overall profit margin was more favourable as a result of
sustained cost control.
Active discussions are currently ongoing on a
sale of this division and the Company expect to inform the market
of the outcome of these discussions in Q2 2019.
***ENDS***
The conference call will be held on
Thursday, 21 March 2019 at 15:00 CET /
14:00 GMT / 10:00 EDT / 07:00 PDT and can
be accessed online at:
http://arkadinemea-events.adobeconnect.com/iba2103/event/registration.htmlIf
you would like to participate in the Q&A, please dial (PIN code
74657221#):
Belgium:
+3224035816UK:
+442071943759NL:
+31207095119LU:
+35227300163US:
+16467224916FR:
+33172727403
The presentation will be available on IBA’s
investor relations website and on
https://iba-worldwide.com/content/full-year-2018-results-web-conference-presentation
shortly before the call.
To ensure a timely connection, it is recommended
that users register at least 10 minutes prior to the scheduled
webcast.
Financial calendarFirst Quarter 2019 Business
Update
Wednesday, May 8, 2019General
Assembly
Wednesday May 8, 2019First Half 2019
Results
Thursday, August 22, 2019
Third Quarter 2018 Business
Update
Thursday, November 14, 2019
About IBA
IBA (Ion Beam Applications S.A.) is a global
medical technology company focused on bringing integrated and
innovative solutions for the diagnosis and treatment of cancer. The
company is the worldwide technology leader in the field of proton
therapy, considered the most advanced form of radiation therapy
available today. IBA’s proton therapy solutions are flexible and
adaptable, allowing customers to choose from universal full-scale
proton therapy centers as well as compact, single room solutions.
In addition, IBA also has a radiation dosimetry business and
develops particle accelerators for the medical world and industry.
Headquartered in Belgium and employing about 1,500 people
worldwide, IBA has installed systems across the world.
IBA is listed on the pan-European stock exchange
NYSE EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB). More
information can be found at: www.iba-worldwide.com
*Proteus®ONE and Proteus®PLUS are brand names of
Proteus 235
For further information, please
contact:
IBASoumya
ChandramouliChief Financial Officer+32 10
475 890Investorrelations@iba-group.com
Thomas RaletHead of Corporate
Communication+32 10 475 890communication@iba-group.com
For media and investor
enquiries:Consilium Strategic
CommunicationsJonathan Birt, Matthew Neal, Angela Gray,
Lizzie Seeley+44 (0) 20 3709 5700IBA@consilium-comms.com
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