1st half of 2018 Results

Report

1st half of 2018 Results

Report

27 September 2018

Net income for the 1st half of 2018 up by 10.2% to €13.0M

Positive trend for orders of new homes and strong growth in the renovation activity

The Board of Directors’ meeting of MAISONS FRANCE CONFORT, held on September 18th, 2018, has approved the accounts for the first half of 2018. These consolidated accounts have been reviewed by its Statutory Auditors.

First half 2018 sales up by 11.5% and net income up by 10.2%

Maisons France Confort Group’s turnover for the 1st half of 2018 reached €410.7M, up by 11.5% compared to last year. This good level of production reflects the unprecedented sales performances recorded during 2017. At constant scope, half year growth reached 9.7%. The BtoC and BtoB renovation activities represent a total turnover of €50M.

The operating income has increased by 4.9% to €19.1M and includes:
– an operating income of the home building activity increased by 17% standing at €20.5M mainly due to an increase in the contribution margin. The operating margin for this activity thus stands at 5.7% against 5.3% for the first half of 2017;

– an operating income of the renovation activity of -€1.4M mainly due to the development of the BtoB renovation activity. The latter is indeed turning towards larger contracts that are more exposed to production time lags and with lower contribution margins in relative value. This context, combined with a classic seasonal effect for this type of activity (H2 production generally higher) and a necessary increase in fixed costs to ensure future development (booked orders up by 83% at end of August), explain this level of income.

For the year as a whole, results for the renovation activity will prove very profitable with a second half in line with the Group’s objectives.

The net income is up by 10.2% at €13.0M in comparison with the €11.8M of the first half of 2017. Net profitability is at a good level and represents 3.2% of sales.

The Group’s financial structure is stong. Group equity stood at €168.5M at June 30th, 2018, the cash position at €106.5M and debt at €75.7M. The cash position net of debt thus stands at €30.8M.

The Group continues to gain market shares and renovation is recording strong growth

The home building sales remain dynamic after a record 2017 financial year and despite the disappearance of a number of government subsidies (interest-free loans less favorable for zones B and C and withdrawal of the “APL accession” housing benefit disqualifying the most modest households from bank loans), leading to a 14.9% market downturn in the 1st half of 2018 (Source Markemetron). Orders are gradually recovering, recording 4,589 sales at the end of August. This represents a turnover of €543.7M (taxes excluded), down by 8.7% in number of sales and 4.8% in value in comparison with 2017 and thus demonstrates the ability of the Group to outperform the market.

At the end of August 2018, the orders recorded for the renovation activity amount to €96.9M. The BtoC activity has reached €36.0M up by 10% versus August 31st, 2017 and the BtoB activity has progressed by 83% to €60.9M.

Growth and continued good profitability expected in 2018

For 2018, given the visibility generated by the order backlog and the level of production in progress, the MAISONS FRANCE CONFORT Group is expecting a new organic growth in sales with a healthy operating profitability.

The group strategy, that has consisted over the last few years in becoming a housing generalist by developing related activities (Services, Renovation, Property development) and its real ability to gain market shares allow the MAISONS FRANCE CONFORT Group to be fully confident in its short- and medium-term route plan.

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