published on 02/23/2021 at 07:08 am
(Boursier.com) – In this year 2020 marked by the Covid-19 pandemic, the group’s turnover Actia Group came out at 438.5 ME, in accordance with the estimate communicated in mid-2020. More than 3/4 of the drop in income was generated in the first half of the year, by the peak of the health crisis and the most restrictive containment measures. No contract has been lost or suspended and only the decline in customer activity weighs on sales volumes. Also, even though the Covid-19 crisis has hit the mobility-related businesses very heavily, Actia Group has benefited from the diversification of its activities, its positioning on cutting-edge solutions, responding to the technological transformation of the passenger car industry. Transport and Telecommunications.
In the 4th quarter of 2020, sales amounted to 132.1 ME, with a drop of 4.8% compared to the same period in 2019. It testifies to the expected recovery. Thus, the decrease in the Automotive division is limited, with regard to the 4th quarter of 2019, to 8.4% against a decrease of 20.3% in the 1st half. The Telecom division, for its part, is recovering very significantly with growth of 22.7% compared to 2019. The Group thus benefits from the resilience of a diversified clientele and from its strengthened commercial efforts.
From a geographical point of view, in 2020, sales of international subsidiaries amounted to 252.5 ME, down 14.1% and those of French companies to 186 ME to 17.9%. In 2020, under the impact of the health crisis, the drop in the volumes of the telematics contract for light vehicles in Sweden and the delay in the SatCom contract in Egypt explain most of the underperformance internationally. Thus, 72.4% of the Group’s revenue was generated there, compared to 75.7% in 2019.
The 4th quarter of the Automotive division amounted to 112.2 ME (8.4%) and generated 84.9% of the Group’s quarterly sales. Compared to the 3rd quarter, activity increased by 19.1%. OEM activities (1) (78.7% of Automotive revenue) fell over the period by 5.2% and 15.7% over the whole of 2020. In the Telematics sector, even if the he year was impacted by the sharp drop in final demand in light vehicles, ACTIA customers are showing good resilience with a gradual rebuilding of order books over the quarters.
Telematics solutions for heavy goods vehicles benefited from a recovery in this market, which had been declining since the 4th quarter of 2019, and posted strong growth at the end of the year. ACTIA’s equipment for special vehicles benefited from sustained activity throughout the year. Less contributing to the Group’s sales, the Diagnostics offer, after performing very well in 2019, is suffering from the sharp decline in the automotive sector, manufacturers reducing their investments, and in passenger transport in general (Bus & Car). This trend is also reflected in the field of infotainment, despite the continued rise of customers in the rail sector.
Aftermarket (2) activities suffered from the sharp drop in demand in the area of fleet management and a slowdown in Technical Control activities, particularly in exports. Investments in new equipment are mostly suspended due to the continuing health crisis, or kept as strictly necessary.
The MDS activity (3) continued to be impacted by the shutdown of customer factories linked to containment, both in France and internationally, and by the decline in the aeronautics sector. ACTIA maintains a very active commercial approach in order to gradually recover better use of its production tools.
Lastly, the Automotive Division continued its work aimed at the emergence of a new Power Division in 2021, by preparing the regrouping of electrification activities including the production of batteries. It should be noted that both commercial and technological investment efforts were maintained in 2020 in order to preserve this important growth driver for the Group in the years to come.
The Telecom Division represents 15.1% of the Group’s quarterly turnover, or 19.9 million euros, up + 22.7%. It was marked by sustained activity at the end of the year without however making up for the delay generated by the health crisis. Important milestones have been reached and additional orders have been placed. These elements, as well as the start of a new SatCom contract in France, will ensure a good level of activity in 2021. Respectively driven by the transformation of the energy landscape and the modernization of rail infrastructures, the underlying trends have remained positive in the Energy and Rail sector.
In an Automotive market deeply marked by the health crisis, ACTIA has shown agility and resilience and has benefited from the depth of its portfolio of customers, solutions and markets. Research and development activities have remained focused on the challenges of orders for the coming years, commercial operations have intensified both in the conquest of short-term opportunities to make up for the decline in end customer activities in times of crisis, but also in the pursuit of the long-term strategy of diversification and search for added value, following the example of the successes in the field of Aeronautics and Space. The Group also continued its modernization, in line with the major investment program carried out between 2017 and 2019. With a modern industrial tool and meeting the highest quality and safety requirements, industrial management solutions (PLM, ERP, NPI) of the latest generations, bringing operational and financial efficiency, will continue to be deployed in 2020 and 2021.
At the same time, the Group maintained strict expenditure control and calibrated each entity on a case-by-case basis. Over the year, the workforce was reduced by more than 200 people, mainly abroad. Long-term partial activity measures (APLD) were negotiated and implemented for certain French establishments at the start of 2021.
The reconstruction of operational profitability which began in the 3rd quarter was reinforced by the level of activity in the 4th quarter. With a view to the closure of the ACTIA India subsidiary, a provision of 3 ME has been made on December 31, 2020. In return for a dollar level at the end of the year very favorable to the Group’s purchases, the valuation on December 31 of currency hedging instruments will weigh for 8.7 ME on the results. Regarding the financial situation, the request for the suspension of the covenants as of December 31, 2020 was accepted by all the banking partners concerned. At the end of the year, the cash flow situation remained favorable and did not require the implementation of new EMPs.
In 2021, ACTIA hopes to recover the level of activity of 2019. This prospect could be confirmed if the tensions on supplies do not worsen. Beyond the uncertainties currently weighing on the global economy, the Group, which is widely diversified and internationalized, is mobilizing, as it always has done, to ensure its long-term development, supported by in-depth expertise in major markets .
(1) OEM : Original Equipment Manufacturers
(2) Aftermarket: Aftermarket, maintenance and repair markets
(3) Manufacturing Design & Services.
Annual results 2020: Tuesday March 30, 2021 (7 a.m.)
SFAF meeting: Wednesday March 31, 2021
Q1 2021 revenue: Thursday May 20.