Emakina results 2015: a very good performance

Income of EUR 70,340,000, up 25%; EBIDTA of EUR 6,070,000, strong growth of 50%

Monday, March 21, 2016 —  

Regulatory information – translation from the official French version

Emakina Group (Alternext Brussels: ALEMK) today announces its annual results for 2015.

Karim Chouikri and Brice Le Blévennec, joint CEOs of Emakina Group, said:

“The Emakina group recorded strong progress in its results in 2015, with growth in its income of 25% and a further improvement in its operating margin of almost 150 basis points. This performance is underpinned by very good commercial dynamics led by all the teams in the group."

1. Key figures

 

In thousands of EUR

2014

2015

Variation

Income

56,136

70,340

+ 25.3%

            Organic growth

+ 10.7%

+ 20.6%

 

Earnings before interest, depreciation and amortisation (EBITDA)

4,053

6,070

+ 49.8%

            Organic growth

+ 25.4%

+ 35.3%

 

Operating margin

+ 7.2%

+ 8.6%

 

Result before tax

-62

1,952

+ 2,014

Net result

-853

1,147

+ 2,000

Karim Chouikri and Brice Le Blévennec, joint CEOs of Emakina Group (ALEMK)

“ The remarkable increase in earnings before interest, depreciation and amortisation (EBITDA) of 50% to EUR 6,070,000 can be attributed to improved efficiency and a better balance between resources and requirements, better cost control and synergies between the entities in the group. Our international expansion also continues, with 57% of income coming from outside Belgium."

"We would like to thank all our clients for their confidence in us, as well as our 700 members of staff for their excellent contribution."

Frédéric Desonnay, CFO Emakina Group, added:

“This improvement in margins over the past three years is the result of major efforts made in house by our managers to keep our costs under control, optimise talent management and ensure the right technological choices with the support of our shareholders and our bankers, not forgetting the contribution made by the financial and administrative teams”. 

2. Key events in 2015

a) New business

In 2015, new national and international clients chose an Emakina group agency as their partner. These included, among others: AstraZeneca,  Bosch  Siemens, Celio,  Carré  de l'Habitat,  Cofely (Engie), Crea Geneve,  Crédit  Mutuel  Arkéa,  De  Lijn,  European  Defence  Agency, Floris  van  Bommel,  Generali,  Goodman,  Greentube, Hypo NÖ, Jimmy Choo,  Kenwood, Kiala (UPS), LolaLiza, Markafoni, Melexis, Merck, Merkur Markt (REWE), Vecos, WE Fashion and brands in the Ales group, such as Caron, Lierac and Phyto.

b) Synergies

All the entities in the group continued to work together on several client projects, thereby enabling widespread sharing of their respective know-how, available resources and specific technologies.

c) Talents

Talent is the main asset within Emakina Group, which does everything possible to attract extraordinary people and help them evolve. At Emakina Group, talented individuals develop their capacities: through contact with their colleagues and with demanding clients; by receiving training; by taking part in research and development programmes.

d) Acquisitions

In September 2015, Emakina acquired 100% of the capital in the digital agency diamond:dogs. With 80 staff and locations in Vienna, Zurich, Salzburg and Zagreb, diamond: dogs enables Emakina to expand in central Europe.

After the close of the year, Emakina acquired 100% of the capital in the Swedish digital agency Dempsey in Stockholm. This operation has a workforce of 15 and, by building on the commercial partnership signed in 2013, enables the Emakina group to strengthen its presence in the Scandinavian countries.

e) Partnerships

In 2015, Emakina Group continued to work together with its partners. They help Emakina offer its clients a wide geographic scope as well as unique local know-how.

In 2015, Emakina Group signed partnerships with Asiance (Korea) and Bubblegum (Spain). They join existing partners Domino (Italy), Metia (UK, USA, Singapore), Piramit (Turkey) and SinnerSchrader (Germany).

f) Launch of EMAKINA / Things

Emakina is innovating by setting up a new skills centre made up of experts in the Internet of Things (IoT).  In an increasingly connected work, this field offers a host of opportunities to build up unique, creative experiences and thus connect brands with their audiences and improve client commitment.

g) Brand Experience Score©

Emakina has unveiled a new approach to ‘Brand Experience’ with an original brand management method and indicator. Brand The Brand Experience Score© is presented on a dedicated website and comparative studies have been carried out on brands in the cosmetics, women’s fashion, D-I-Y and gardening sectors.

General comments

a) Sharp increase in sales

In 2015, the Emakina Group consolidated sales amounted to EUR 70,340,217, compared with EUR 56,135,588 in 2014, a rise of +25.3% (+20.6% at constant scope).

In geographic terms, the client share ‘outside Belgium’ stood at 57% of total consolidated sales in 2015, compared with 50% a year earlier. Sales in Belgium rose by 7% in 2015.

It is worth noting that the acquisition in September 2015 of the Diamond Dogs communication group in Vienna, Salzburg, Zurich and Zagreb, as well as the acquisition in January 2016 of the Dempsey agency based in Stockholm are the most recent examples of Emakina's wish to operate more widely in Europe in order to support its international clients here as well as possible.

b) 50% rise in EBITDA

The earnings before interest, depreciation and amortisation (EBITDA) amounted to EUR 6,069,790 (EUR 5,485,000 at constant scope) in 2015, compared with EUR 4,053,307 in 2014. Expressed as a percentage of total sales, the EBITDA rose by 7.2% to 8.6% (8.1% at constant scope) between 2014 and 2015.

This positive development of the operating margin results primarily from a better resource occupancy rate combined with cost control, continuing the trends observed since 2013.

The current result (before amortisation of consolidation differences) rose strongly in line with the EBITDA owing to the limited increase in amortisation charges on tangible and intangible fixed assetsand the financial result over 2015 compared with 2014.

c) Positive net result of EUR 2,792,412 before and EUR 1,147,177 after amortisation of goodwill

The net result for 2015 (before amortisation of consolidation differences) rose by EUR 2,026,138 owing to the development of the current result, the lack of any extraordinary result in 2015 compared with the previous year and a stable tax burden.

Amortisation of consolidation differences (imposed by Belgian accounting standards) had a negative impact on the net result of the company of EUR 1,645,235 in 2015, compared with EUR 1,619,758 in 2014. This element of Belgian accounting law which imposes systematic amortisation weighs significantly on the consolidated net result.

4. Financial health

In 2015, the group’s financial health improved thanks to a level of financial indebtedness in line with the growth recorded, lower working capital requirements exerting a positive impact on the cash position and the availability of appropriate credit lines.

5. Outlook for 2016

The Emakina Group management expects an organic increase in its sales at a figure for the year 2016 as a whole based on the commercial debt.

6. Senior management statement

The Board of Directors states that to the best of its knowledge, the condensed and consolidated interim financial statements as closed on 31 December 2015, drawn up in accordance with Belgian accounting standards, give a faithful picture of the assets, the financial situation and the results of the Emakina group. The annual financial report contains an accurate account of the information that has to be included in it.

7. Sundry

a) Auditor’s report

The auditor has confirmed that his audit of the consolidated accounts is complete in terms of substance and has not revealed any significant adjustment to be made to the accounting data presented in the release.

b) Belgian accounting standards

All the consolidated figures set out in the annex have been established in accordance with Belgian accounting standards (in particular as regards the mandatory amortisation of goodwill).These figures provide a summary of the financial results that will be presented in detail in the 2015 annual report.

c) Shareholders’ diary 2016

1 April:                          Annual report 2015 (brochure);

22 April:                       General meeting of shareholders;

16 September:             Publication of first half-yearly results 2016.

CONSOLIDATED FIGURES 2015 – EMAKINA GROUP SA

CONSOLIDATED INCOME STATEMENT (EUR) *

31/12/2015

31/12/2014

31/12/2013

SALES AND SERVICES

70,340,217

56,135,588

50,117,336

Turnover

67,561,421

53,444,947

48,680,249

Variations in projects in progress

-436,797

51,959

298,779

Capitalised production

102,199

129,698

110,489

Other operating income

3,113,394

2,508,984

1,027,819

OPERATING CHARGES (BEFORE AMORTISATION)

-64,270,428

-52,082,281

-47,060,983

Purchase of equipment and services linked to sales

-33,621,620

-26,665,481

-24,146,466

Remuneration, social security charges and pensions

-30,458,796

-25,272,915

-23,048,167

Other operating charges

-190,011

-143,885

133,650

EARNINGS BEFORE INTEREST, DEPRECIATION AND AMORTISATION = EBITDA

6,069,790

4,053,307

3,056,353

AMORTISATION AND DEPRECIATION

-1,898,211

-1,692,033

-1,340,574

Amortisation of intangible and tangible fixed assets

-1,367,209

-1,560,223

-1,370,127

Depreciation of trade receivables

-503,482

-131,810

24,553

Provisions for liabilities and charges

-27,520

0

5,000

OPERATING PROFIT

4,171,579

2,361,274

1,715,779

FINANCIAL RESULTS

-599,806

-460,281

81,283

Financial income

238,706

261,454

754,798

Financial charges

-838,513

-721,735

-673,515

CURRENT PROFIT BEFORE AMORTISATION OF CONSOLIDATION DIFFERENCES

3,571,772

1,900,993

1,797,062

AMORTISATION OF GOODWILL**

-1,645,235

-1,619,758

-1,028,432

CURRENT PROFIT

1,926,537

281,235

768,630

EXTRAORDINARY RESULTS

25,576

-343,151

-43,782

RESULTS BEFORE TAXES

1,952,113

-61,916

724,848

DEFERRED TAXES

-74,957

-61,467

-11,193

INCOME TAX

-729,979

-730,101

-550,762

SHARE IN THE RESULTS OF COMPANIES CONSOLIDATED USING THE EQUITY METHOD

0

0

-14,326

NET PROFIT BEFORE AMORTISATION OF CONSOLIDATION DIFFERENCES.

2,792,412

766,274

1,176,999

NET RESULTS

1,147,177

-853,484

148,567

A. Share of minority interests

 

590,055

278,666

193,264

B. Group share

557,122

-1,132,150

-44,697

 

DATA PER SHARE

31/12/2015

31/12/2014

31/12/2013

NUMBER OF SHARES

3,893,353

3,844,061

3,844,061

NUMBER OF SHARES AND WARRANTS

3,931,293

3,941,781

3,995,211

CURRENT RESULTS / SHARE (in EUR)

0.4948

0.0732

0.1999

CURRENT RESULTS / SHARE AND WARRANT (in EUR)

0.4899

0.0713

0.1924

GROUP SHARE  / SHARE (in EUR)

0.1431

-0.2945

-0.0116

GROUP SHARE / SHARE AND WARRANT (in EUR)

0.1417

-0.2872

-0.0112

NET RESULT / SHARE (in EUR)

0.2947

-0.2220

0.0386

NET RESULT / SHARE AND WARRANT (in EUR)

0.2918

-0.2165

0.0372

 

 

ASSETS (EUR) *

31/12/2015

31/12/2014

31/12/2013

 

 

 

 

FIXED ASSETS

12,922,391

10,176,906

11,171,038

Formation expenses

141,733

195,055

297,600

Intangible assets

1,829,716

2,063,497

2,038,425

Consolidation differences

9,621,685

6,582,723

7,084,341

Tangible assets

1,069,198

1,028,533

1,484,521

Fixed financial assets

260,059

307,098

266,151

CURRENT ASSETS

28,822,802

24,759,590

22,450,532

Stocks and contracts in progress

2,818,607

3,255,404

4,486,882

Deferred taxes

0

79,136

93,041

Amounts receivable within one year

20,560,092

18,474,777

13,845,816

Current investments

65,935

314,201

305,890

Cash at bank and in hand

4,314,371

2,044,869

2,863,659

Deferred charges and accrued income

1,063,797

591,203

855,244

TOTAL ASSETS

41,745,193

34,936,496

33,621,570

 

 

 

 

LIABILITIES (EUR) *

31/12/2015

31/12/2014

31/12/2013

 

 

 

 

CAPITAL AND RESERVES

10,116,550

9,135,600

10,266,607

MINORITY INTERESTS

760,445

670,127

338,629

PROVISIONS FOR LIABILITIES AND CHARGES

105,310

0

0

DEFERRED TAXES AND DEFERRED TAX LIABILITIES

7,889

12,068

44,645

DEBTS

30,754,999

25,118,701

22,971,689

Amounts payable after one year

2,515,600

1,470,618

2,186,146

Amounts payable within one year

27,610,416

23,206,853

20,243,085

Current portion of amounts payable after one year

1,513,116

1,320,845

889,396

Financial debts

3,148,934

4,788,341

6,148,109

Trade debts

7,040,325

4,690,241

3,964,507

Advances received

6,245,727

5,400,122

3,420,199

Taxes, wages and social security

5,520,916

5,233,689

4,443,701

Other amounts payable

4,141,398

1,773,615

1,377,173

Deferred charges and accrued income

628,983

441,230

542,458

TOTAL LIABILITIES

41,745,193

34,936,496

 33,621,570

* Drawn up in accordance with Belgian accounting standards.

** In accordance with the valuation rules, consolidation differences (or goodwill) are amortised over eight years, irrespective of any excess values to be taken into consideration in accordance with Belgian accounting standards.

 

In accordance with the Alternext Brussels regulations, this annual press release is optional.

It will be followed by the publication of the Emakina Group annual financial report 2015 which will contain all the regulatory information. This report will be available on our website, www.emakina.com (“Financial - Reports” section) as of 1 April 2016, in accordance with the applicable legal provisions.

Emakina, Partner in your Digital Transformation
Emakina 2015 results - infographic
Frédéric Desonnay, Brice Le Blévennec and Karim Chouikri
Emakina's CFO Frédéric Desonnay
Joint CEO's Karim Chouikri and Brice Le Blevennec and CFO Frédéric Desonnay