COMPAGNIE D'ENTREPRISES CFE SA PRESS RELEASE
Wednesday 17 May 2023 - 7 :00 CET
regulated information
Quarterly information at 31 March 2023
Wednesday 17 May 2023 - 7:00 CET
regulated information
Quarterly information at 31 March 2023
- Sustained growth in turnover: + 11.1%
- Strong order book, albeit down from the very high level of 31 December 2022
- Net financial debt amounts to EUR 89.6 million, a slight increase compared to 31 March 2022
- Payment of the dividend of EUR 0.40 gross per share on 24 May 2023
- Outlook for 2023: return on equity (ROE) is expected to be close to the long-term target of 15%.
1. Key figures
Revenue
In million €
31/03/2023
31/03/2022
Change
Real Estate Development | 36.5 | 15.1 | +141.7% |
Multitechnics | 75.6 | 73.7 | +2.6% |
Construction & Renovation | 214.8 | 184.8 | +16.2% |
Holding & Investments and | (23.7) | (0.8) | n.s. |
eliminations between segments | |||
Total | 303.2 | 272.8 | +11.1% |
Order book
In million €
31/03/2023
31/12/2022
Change
Multitechnics | 344,7 | 368,9 | -6,6% |
Construction & Renovation | 1.142,0 | 1.264,1 | -9,7% |
Other segments | 65,4 | 82,1 | -20,3% |
Total | 1.552,1 | 1.715,1 | -9,5% |
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Wednesday 17 May 2023 - 7:00 CET
regulated information
2. Analysis by segment
Real Estate Development Segment (BPI Real Estate)
EVOLUTION OF THE CAPITAL EMPLOYED
BREAKDOWN BY STAGE OF PROJECT DEVELOPMENT
In million € | 31/03/2023 | 31/12/2022 | ||||
Unsold units post completion | 0 | 0 | ||||
Properties under construction | 61 | 52 | ||||
Properties in development | 154 | 151 | ||||
Total capital employed | 203 | |||||
215 | ||||||
BREAKDOWN BY COUNTRY | ||||||
In million € | 31/03/2023 | 31/12/2022 | ||||
Belgium | 109 | 108 | ||||
Grand Duchy of Luxembourg | 28 | 27 | ||||
Poland | 78 | 68 | ||||
Total capital employed | 203 | |||||
215 |
The marketing of projects launched before the summer of 2022 is highly satisfactory. However, the pace of sales is slower for projects that have just started construction or that are in the pre- commercialisation phase. This evolution confirms the difficult market conditions in the three countries in which BPI Real Estate operates following rising interest rates and construction prices.
Capital employed
Capital employed remained stable in Belgium and Luxembourg. On the other hand, in Poland, the stock of projects in the marketing phase is increasing.
Wood Hub
No significant transactions took place during the first quarter of 2023, but BPI Real Estate has reached an agreement with Ethias for the sale of the Wood Hub building, which is scheduled for the second half of 2023. This 7,300 m² building in Auderghem, the future headquarters of CFE and its Brussels subsidiaries, is considered one of the most ambitious buildings in the Benelux in terms of sustainability thanks to its mixed wood and concrete structure, its primary energy requirement of no more than 8.59 KWh per m² and its BREAAM Outstanding and WELL Platinum certifications. The building, which will be delivered at the end of 2023, is an example of the collaboration between the CFE group's various subsidiaries: the project is being developed by BPI Real Estate, the construction is being carried out by BPC Group and Wood Shapers, and the technical aspects by VMA, which will also deploy its VMANAGER digital platform to manage the building centrally and intelligently.
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Wednesday 17 May 2023 - 7:00 CET
regulated information
Multitechnics Segment
KEY FIGURES
In million €
Revenue
Order book
31/03/2023
75.6
344.7
31/12/2022
338.8
368.9
31/03/2022
73.7
417.8
REVENUE
VMA achieved a revenue of EUR 53.8 million, which is up 15%, driven by the strong progress of the ZIN project. The maintenance business is also growing significantly.
On the other hand, MOBIX's revenue is down due to the reduction in service orders resulting from framework agreements for track and catenary installation. The LuWa project (modernisation, management and maintenance of public lighting in the Walloon structural network) is entering its final phase in terms of the modernisation work.
ORDER BOOK
The order book stands at EUR 344.7 million, down 6.6% compared to 31 December 2022, mainly due to the reduction in the volume of new tenders launched by Infrabel.
VMA has won several large orders for the programming and assembling of robot lines for automotive manufacturers, mainly in Germany.
Construction & Renovation Segment
KEY FIGURES
In million €
Revenue
Order book
REVENUE
31/03/2023
214.8
1,142.0
31/12/2022
798.7
1,264.1
31/03/2022
184.8
1,196.2
Revenue in the first half of 2022 amounted to EUR 214.8 million, up 16.2% compared to the first quarter of 2022.
Activity was particularly strong in Brussels and Wallonia, while in Flanders several large projects such as Blok 21/24 Nieuw Zuid in Antwerp are in the start-up phase. The structural work of the ZIN project has been completed and it is now entering the finishing phase.
In Luxembourg, CLE is completing several residential projects for BPI Real Estate, contributing to a high level of activity.
In Poland, the construction of the battery factory for Northvolt is nearing completion. In addition to building sites for BPI Real Estate, CFE is carrying out several industrial projects and logistics platforms.
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Wednesday 17 May 2023 - 7:00 CET
regulated information
In Germany, the first project under construction (a logistics centre) is progressing well.
ORDER BOOK
The order book amounted to EUR 1.14 billion as at 31 March 2023, compared to EUR 1.26 billion at 31 December 2022.
The crisis affecting the residential and office market is weighing on order intake. Numerous property developers have decided to freeze or postpone their projects. CFE nevertheless managed to partially mitigate the effects of this by developing its industrial and logistics businesses. For example, MBG won a major order for INEOS in the port of Antwerp.
Holding & Investments Segment
Green Offshore
The Rentel and SeaMade offshore wind farms produced just over 800 GWh of green electricity in the first quarter of 2023. The weather conditions were generally favourable. Furthermore, the new regulatory framework for green certificates has not yet been formalised.
Rent-A-Port
In April 2023, a new investor participated in a capital increase in Infra Asia Investment (Hong Kong) LTD (IAI) which, through its subsidiaries, is developing five industrial zones in northern Vietnam under the trade name "Deep C".
As a result of the USD 23.8 million capital increase, Rent-A-Port's stake in IAI was diluted from 94% to 84%. This transaction, which shows the value and potential of IAI, will have no impact on the income statement as Rent-A-Port maintains its exclusive control over IAI.
PPP Eupen
Belgium's German-speaking community has decided to terminate the DBFM contract for five schools in the city of Eupen. Its decision was motivated by the desire to take over the management and maintenance of the school buildings directly and to finance them itself. This transaction is expected to be finalised on 30 June 2023. As a reminder, CFE has a 19% stake in the concession company and a 25% stake in the company in charge of maintenance which started in 2014. This transaction will have a favourable impact on the half-yearly results.
3. Outlook for 2023
In a difficult macro-economic context, particularly for the residential and office property market, CFE expects a return on equity for 2023 close to its long-term objective of 15%.
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CFE - Compagnie d'Entreprises SA published this content on 17 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2023 07:39:05 UTC.
