Xilam shares climbed over 12% on the Paris Bourse on Friday, following the publication of 2023 annual results marked by much stronger than expected cash generation.

The animation studio said that last year it generated a record free cash flow of 12.6 million euros, giving it a year-end net cash position of 3.8 million euros.

This improvement also led to a sharp reduction in net financial debt, down to 7.3 million euros from 15.9 million euros a year earlier.

Operating income recurring amounted to 5.1 million euros, more than double the figure for 2022.

Despite a sharp drop in forecast sales for 2024, the Group is maintaining its guidance of operating income recurring close to breakeven this year.

'As announced six months ago following the cancellation of two major series, 2024 will be a transitional year', reacted Euroland analysts in a note.

We also hope that the Group will soon be able to live up to its ambitions, namely a return to sustainable, profitable growth", they added.

Euroland is maintaining its 'neutral' opinion and its price target of eight euros in the absence of any catalysts on the share over the next 12 months, while saying it will remain on the lookout for 'positive' signals.

At 11:45 a.m., with a gain of over 12%, the share was one of the strongest performers on a Paris market down 1.5%. Although the share price has risen by 12% since January 1, its decline over the past 12 months is still 83%.

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