COIL CONFIRMS ITS
RECORD EARNINGS FOR 2016
-
All-time high of €8.0 million
for 2016 EBITDA, representing 24.1% of revenues
-
Net income up 30% to €4.7
million
-
Significant improvement in
gearing to 40%, versus 64% in 2015
Brussels, April
28, 2017 (5:45 pm) - COIL, the world leader for aluminium
anodising, is releasing its full-year earnings for 2016.
Strong growth in
business
In a buoyant aluminium market,
COIL achieved record revenues of €33 million in 2016, up 32.3% from
2015. Growth has been driven by the ramping up of sales of
anodising services (+24%) and the very strong development of sales
of packaged offers (including anodising and metal), delivering
year-on-year growth of 115%.
Growth reflects the
diversification of the product-customer mix, thanks in particular
to the broader product ranges introduced. This can be seen in the
significant developments recorded on the aluminium composite panels
market and the strengthening of positions on architectural markets
in Europe, North America and Asia.
Industrial
facilities further strengthened in 2016
In Belgium, the investments in
Line 2 were completed during the first half of the year, notably
incorporating the main mechanical elements from the continuous
anodising line acquired in Italy in 2015. The refurbishment of
Lines 1 and 2, now focused on thin-gauge metal, has contributed to
a significant improvement in their quality and productivity, while
reducing their costs and increasing their production
flexibility.
Line 3 operated at very high
levels throughout the year to satisfy strong demand for
thicker-gauge metal for architectural applications.
As announced, the Company has
permanently shut down Line 4, which never achieved its targets due
to its extreme complexity and limited dimensional capacity. The
elimination of its high operating costs has had a positive impact
on profitability for the year. This line's operations have been
successfully transferred to Lines 1 and 2. The closure of Line 4
will make it possible to set up in its place the new batch
anodising line, acquired in Italy in 2015, as well as the
cut-to-length line (see below).
In Germany, Line 5 maintained a
high level of activity throughout the year in 2016 thanks to
sustained demand for high-gauge natural anodised products.
Investments in the sixth continuous anodising line have continued
to move forward effectively without disrupting or affecting
production quality for Line 5.
Solid earnings
growth
COIL set new records for its
earnings in 2016. Driven by growth in business and effective cost
management, EBITDA is up 16% year-on-year to €8.0 million,
representing 24.1% of revenues.
Operating income climbed 17% to
€5.3 million, factoring in €5.0 million of non-recurring costs.
Excluding these non-recurring costs, operating income growth comes
out at 127% compared with 2015.
With net financial expenses down
to €0.6 million and a €0.1 million tax expense, net income is up
30% from 2015 to €4.7 million.
Condensed income
statement
€'000,000 |
2016 |
2015 |
Change |
Revenues |
33.0 |
24.9 |
+32.3% |
EBITDA |
8.0 |
6.9 |
+15.9% |
% of revenues |
24.1% |
27.5% |
|
Operating
income |
5.3 |
4.6 |
+17.1% |
% of revenues |
16.1% |
18.2% |
|
Pre-tax
income |
4.7 |
3.7 |
+25.7% |
Net
income |
4.7 |
3.6 |
+29.9% |
% of
revenues |
14.1% |
14.4% |
|
Financial
structure further strengthened
COIL's balance sheet at December
31, 2016 is significantly stronger. Shareholders' equity represents
€29.4 million, up 46% from December 31, 2015, taking into
account earnings for the year and the €4.4 million reserved capital
increase carried out in the first quarter of 2016.
Despite investments being ramped
up in Belgium and Germany, net financial debt came to €11.9 million
at December 31, 2016, down 7% from December 31, 2015. The ratio of
net financial debt to equity shows a significant improvement, down
from 64% at December 31, 2015 to 40%.
Continued growth
for the first quarter of 2017
Revenues for the first quarter of
2016 climbed 8% from the first quarter of 2016 to €7.5 million.
Growth has been built around the good level of outsourcing business
(+3.3%) and the strong progress made with sales of packaged offers
(14.3% of revenues for the quarter, versus 10.4% one year
earlier).
Major investment
cycle finalised in 2017
COIL will be completing its major
capital investment cycle in 2017, before returning to more standard
levels of investment, focused primarily on maintaining its
industrial facilities.
In Germany, the Bernburg site will
be further strengthening its specialisation in large-scale
production runs for the architectural industry, with the completion
of a €23.8 million investment plan, covering a continuous anodising
line with cutting-edge technological features. This line will offer
over 15,000 tons of additional capacity and will contribute to the
creation of the world's most modern continuous anodising plant,
with major processing capacity in terms of surface finishings and
sizes.
Its opening will make it possible
to temporarily shut down Line 3 in Belgium. This 15,000 ton line,
which has been the backbone for COIL's architectural operations
since 1985, requires certain improvements and refurbishments.
Lastly, in the fourth quarter of
2017, COIL will be finalising the installation of a next-generation
batch anodising line in Belgium. This line, which already stood out
through its high level of automation, has been substantially
improved in order to increase its dimensional capacity. This
facility, the only one of its kind in the world, will offer an
opportunity to further diversify COIL's core business into
anodising flat-rolled laminated aluminium products. More
specifically, it will enable it to deliver small quantities of
anodised sheets, a major strategic element for designing new
colours and finishings, as well as developing new markets.
This new line - Aloxide - will
notably offer the following benefits:
-
Delivery times reduced to two weeks for
Asia
-
Anodising of sheets more than 3 mm thick
-
Anodising of the four edges of sheets
-
Ability to quickly supply mock-ups for
architectural projects
-
Batch anodising incorporating a flexible
continuous anodising component to enable the transformation of
sheets after anodising
-
Possibility to anodise very small quantities of
sheets with a view to developing new markets and products
-
Lower limit for minimum orders, enabling COIL to
access new markets, such as the interior design market.
Alongside this installation, COIL
will be installing the cut-to-length line, acquired in Italy.
Refurbished and upgraded, this line is expected to considerably
increase the flexibility of the Company's operations, while
reducing its dependence on external companies.
Outlook
Considering the significant scale
of these investments, 2017 is expected to be a year of transition,
particularly with the Company's consolidation of the growth
achieved in 2016 and various non-recurring costs linked to starting
up the new production lines. However, by the end of the year, the
Company will benefit from stronger potential for development,
notably using Aloxide as a means of strengthening the appeal of its
offers.
At the leading-edge of aluminium
anodising, COIL has outstanding fundamentals in place to further
strengthen its value creation on a lasting basis in a market for
which the long-term outlook is very positive. The wide range of
solutions offered by COIL, combined with its unrivalled dimensional
capacities, is further strengthening its position to conquer new
markets.
Thanks to the progress made with
its performances over the past two years, the Company is confident
that it will be able to successfully complete the various projects
underway, further strengthening its growth and profitability from
2018.
Next date:
General Meeting on June 7, 2017
COIL is the world's largest
architectural and industrial anodiser.
Anodising is an electrochemical process - electrolysis - that
develops a natural and protective exterior layer on aluminium that
can be coloured, providing exceptional corrosion protection and/or
increased functionality for the metal.
Anodising preserves all the natural and ecological properties of
aluminium - it retains its high strength-to-weight ratio,
non-magnetic properties and exceptional corrosion resistance
without any impact on the total and repeated recyclability of the
metal.
Anodised aluminium is used across a wide range of architectural,
designer, industrial and automotive applications. |
Alternext
ISIN: BE0160342011 - ALCOI
Reuters: ALCOI.PA
Bloomberg: ALCOI:FP
www.coil.be
COIL
Tim Hutton
Chief Executive Officer
tim.hutton@coil.be
Tel: +32 (0)11 88 01 88
CALYPTUS
Cyril Combe
cyril.combe@calyptus.net
Tel: +33 (0)1 53 65 68 68 |
2016 earnings
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: COIL via Globenewswire
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