ANOVO is pleased to announce its full year results ending September 30th 2013 which clearly reflect the positive impact of its growth strategy, returning a consolidated Group revenue of €315 million (+24% increase on last year) and an operating profit of €9.2 million (+ €4 million) an increase of 74% on the previous year. The results underline the Group’s ability to grow profitably in a challenging economic environment and within fast moving markets while continuing its focus on developing innovative new services for its clients.
KEY BUSINESS HIGHLIGHTS
International footprint was expanded with the operation in Colombia launching a network of proximity repair services and the first of its depot repair contracts for Telefonica.
Further acquisitions are planned in Brazil for 2014 to support the demand for growth from our customers in this region.
ANOVO Deutschland GmbH was launched from its operation in Düsseldorf in August 2013 providing European-wide customer logistics and repair services for a leading notebook and tablet brand manufacturer.
Regeneration activities were consolidated under a Global Business Unit driving a business in excess of €100M annually providing specialised marketing and delivery of innovative multi-channel programmes for Operator take-back, B2C buy-back, B2B asset recovery and Insurance fulfilment.
New customer contracts have been signed across all business segments notably with a strong performance within core reverse hub and repair businesses and a rapid acceleration of new clients within insurance repair and fulfilment.
Within Spain, a large new contract for the supply of multi-channel integrated Hub and After Sales Services for a market-leading Telco Operator has strengthened ANOVO’s position within the Iberia mobile device returns and repair market.
In Latin America, ANOVO was selected to partner the launch of new customer buy-back services in Chile, Peru, Colombia and Brazil increasing the range of mobile after sales services already supplied to the Telefonica organisation in UK, Spain and Latin America.
Important new contracts were also secured in the re-structured Poland central repair site with warranty accreditation of the Live Box products from ZTE and continued collaboration with IBM for the EMEA-wide screening, repair and warranty management of LCD products.
In France, ANOVO secured a strong foothold in the after sales service market for TV products with the regional contract to service all Philips branded TVs.
In the UK, ANOVO increased significantly its contract volumes for mobile device insurance repair and replenishment through a diversified client base while consolidating its leading after sales service position with mobile device OEMs such as Samsung and Nokia.
In Switzerland, ANOVO formed a new partnership with a leading mobile phone insurance provider supplying a swap and replenishment service for loss and damaged mobile phones, tablets and other insured electronic devices.
All subsidiaries posted positive EBIT results reflecting the success of controlled start-ups in Colombia and Germany, the re-structuring of our Poland activities to one site and the significant ramp-up of new volumes in Iberia.
The focus on reducing cost and continued investments in productivity linked to an enterprise-wide IT strategy have yielded positive results.
Investment in innovative new services in buy-back, insurance fulfilment and returns avoidance have not only secured new contracts within the trading period, but also unlocked significant savings for existing key customers.
Within the year progress has been made with the strengthening of the Senior Management team adding a CIO and a new deputy CFO to the Board, while adding key financial management skills to support the growth of the Regeneration Business Unit. CEO positions have been filled in France, Switzerland and Peru, while renewed Sales teams locally and at Group level are building a strong new business pipeline.
KEY FINANCIAL HIGHLIGHTS
- Figures based on the fiscal year from 1st October to 30th September 2013.
- Total Revenue of €315.1 M split regionally as 34% France, 33% UK, 19% Spain, 7% Latin America and 7% Belgium, Switzerland and Poland.
- Revenue growth driven in the main by core reverse hub and repair activity and new business in Regeneration and Insurance services.
- Group EBIT total of €9.2M with all operating subsidiaries achieving positive results.
- Financial result increased due to higher use of factoring.
- Despite Non-recurring expenses related to re-structuring costs, strong Net result increase of €4.6M.
- Equity and quasi-equity reached €27.9M as of September 2013 (+ €6.3M) with Net result and current account conversion to Equity.
- Working Capital increased impacted by revenue growth.
- Net Debt reached €12.9M with increased factoring facilities.
- Cash at Bank as of September 2013 amounted to €13.7M.
Trading for the first quarter of 2014 has started equally as strongly with results to-date exceeding both revenue and EBIT expectations. The outlook for the full year is for continued growth with the impact of recent acquisitions and new, significant business wins acquired in the first quarter of this year taking a full positive effect.
On the strength of its results, projected business plan and market opportunities immediately open to ANOVO, the Board is pleased to confirm that additional funding is being secured for planned acquisitions and development of its new services portfolio.