COIL CONFIRMS ITS VERY HIGH LEVEL OF PROFITABILITY IN 2017, DESPITE START-UP COSTS ASSOCIATED WITH THE MAJOR INVESTMENTS IN BELGIUM AND GERMANY

  • 2017 EBITDA up to 26.2% of revenues from 24.1% in 2016
  • Net income of €4.2m, representing 14.1% of revenues, stable versus 2016
  • Gearing unchanged at 40% of equity despite very high levels of investment (€7.2m)
  • Stronger outlook for growth
  • Proposed dividend of €1.00 per share

Brussels, April 26, 2018 (5:45 pm) - COIL, the world leader for aluminium anodising, is releasing its full-year earnings for 2017.

Industrial investment cycle completed successfully

COIL has successfully completed its major industrial investment cycle in Belgium and Germany aiming to further strengthen its production capacity and improve the flexibility of its operations.

The Bernburg site (Germany) has doubled its production capacity for thick-gauge anodised aluminium serving the construction and architecture markets. A new 15,000 tonne capacity continuous anodising line was brought into production in the fourth quarter. Benefiting from the world's best performance standards in terms of dimensions and finishings, since the start of 2018, this Line 6 has been taking on production from Line 3 in Belgium, which, after running for over 33 years, now requires certain refurbishments.

The Landen site (Belgium) has confirmed its high levels of performance, in terms of both quality and productivity, following the investments made in Lines 1 and 2, in 2014 and 2016 respectively. Alongside this, the site has completed its drive to diversify activities with the production of small series of anodised sheets. A new batch anodising line, based on the new Aloxide® process, has been installed, with production starting up in early 2018. This strategic facility is the only one of its kind in the world thanks to its high levels of automation and outstanding dimensional capacity. It is designed for just-in-time sheet treatment in line with the continuous anodised finishings available. Combined with its highly responsive capabilities to support the development of architectural projects, it will also help further diversify the company's range of solutions and client base.

High margin rates maintained

Full-year revenues for 2017 totalled €29.7m, in line with the company's expectations. This is compared with a high basis for comparison, with 32.3% growth and record revenues in 2016.

Despite the drop in sales and the impact of non-productive costs for commissioning Line 6, EBITDA came to €7.8m, with a limited year-on-year contraction of 2.5%. It represents 26.2% of revenues, up from 24.1% in 2016. The contraction in the gross margin and the increase in staff costs have been offset by the reduction in other costs.

Operating income came to €4.9m, with a margin representing 16.7% of revenues, versus 16.1% in 2016.

After €(0.6)m of net financial expenses and a €(0.1)m tax expense, net income represents €4.2m, with a 14.1% margin, stable compared with the previous year.

Condensed income statement

€m20172016
Revenues 29.7 33.0
EBITDA 7.8 8.0
  % of revenues 26.2% 24.1%
Operating income 4.9 5.3
  % of revenues 16.7% 16.1%
Pre-tax income 4.3 4.7
Net income 4.2 4.7
  % of revenues 14.1% 14.1%

Robust financial structure to support development

COIL's balance sheet at December 31, 2017 is stronger. Shareholders' equity is up €2.9m from December 31, 2016 to €32.3m, primarily reflecting income for the year (€4.2m) and the special dividend payment (€1.4m).

In 2017, COIL invested €7.2m, with €2.8m in Germany and €4.4m in Belgium. Despite these major investments, the level of net financial debt after liquid assets is still reasonable, with €13.0m at December 31, 2017. It represents 40% of equity, the same as the previous year.

Stronger outlook for growth

Coil is developing an aggressive strategy to support the anodised aluminium market, which has a very positive long-term outlook. In 2017, the company took a key step forward to accelerate its growth strategy with a broader global client base, notably using "Aloxide" as a means of strengthening the appeal of its offers.

With its reinforced and diversified industrial capabilities, COIL aims to further strengthen its leadership and capitalise on the numerous opportunities for development. In this context, COIL is very confident about the future and is returning to more standard levels of investment (capex), with around €1.5m per year. For 2018, the company is targeting full-year revenues of nearly €30m.

Proposed dividend of €1.00 per share

The Board of Directors will be submitting a proposal at the General Shareholders' Meeting on June 6 for a dividend of €1.00 per share.

Additional information

The financial statements were approved by the Board of Directors on April 26, 2018. They are included in the consolidated annual accounts for 2017, available on the company's financial site (http://investors.coil.be).

The company has decided to no longer report its quarterly revenues from 2018, as the level of sales in the short term can give a distorted view of the company's medium and long-term performance.

Next dates

  • June 6, 2018:          General Meeting
  • July 19, 2018:         2018 first-half revenues
  • October 2, 2018:     2018 first-half earnings
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.  
Euronext Growth Paris
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
2017 earnings



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Source: COIL via Globenewswire