As an integrated Group operating in all event professions, GL events works in three major segments:
event organisation, event venue management and services for fairs, congresses and events.
© Odile Decq architect / Felice Varini – Altitude 150
|Consolidated net sales||301,9||235,0||+28,5 %|
|Net financial expense||-3,1||-2,6||-18 %|
|Amortisation of goodwill||-1,5||- 0,2|
|Income excluding exceptionals and goodwill amortization||11,9||9,3||+29 %|
|Net attributable income||11,0||9,2||+20 %|
Year 2002 performance exceeded forecasts
The 28.5% increase in sales (+8% on a like-for-like basis) reflected good performances in all of GL's three businesses. With sales of €32mn in 2002, Venue and Event Management in particular surged 133% in relation to the prior year with an organic growth up 44%.
Gains also achieved in terms of profitability
For year 2002, EBIT totaled €22.5mn, an increase of 32% in relation to 2001.
The EBIT margin advanced from 7.25% in 2001 to 7.45% in 2002.
For Global Services and Fittings-Museum Fittings-Systems, the EBIT margin held steady in relation to 2001. In contrast, Venue and Event Management saw its EBIT margin surge from 5.6% to 9.9%.
An amortisation charge related to goodwill acquired since 2000, has been recorded for €1.5mn.
Net attributable income totaled €11mn versus €9.2mn in 2001. Excluding exceptional items and goodwill amortization, Group income increased 29% to €11.9mn.
In addition, the Group's financial position remain contained with a gearing of 59.3% in 2002 versus 80.0% as at June 30,2002 and 55.4% in 2001).
The effectiveness of the Group's growth model has been confirmed
- Initial targets were surpassed despite adverse economic trends.
- Strong growth by Venue and Event Management which benefits from many competitive advantages: sales offering good visibility with secure sources of revenue, further market share gains (trade shows-exhibitions-events-conventions), limited requirements in terms of capital outlays.
Supported by a favorable regulatory environment ('Sapin' law) and a competitive field where the number of players remains limited, sustained growth in this business (adding an estimated two contracts per year) should contribute to further gains in the Group's profit margin through a global offer of sites and services, negative working capital requirements and an improving capital turnover performance.
- A solid position in its markets: 2003 sales are secured through significant contributions from recurrent services plus contracts signed to date for several nonrecurring events which already represent the equivalent of last year's non recurrent major contracts sales. Générale Location in this way successfully leverages its international notoriety and leadership position to facilitate market access.
"Despite unfavorable economic trends, Générale Location achieved an excellent performance in 2002 and its significant competitive advantages enable it to face the future with confidence" stated Olivier Ginon, Chairman.
Venue and Event Management should pursue its growth trajectory, boosted notably by the management of the Floral Park of Paris beginning in 2003 (contributing total annual sales, including associated Global Services, of €5.5mn) and the April 2004 launch of the International Convention Center of Barcelona.
By pursuing the globalization of its offer, GL should benefit from positive trends of sustained growth. For the first six months of 2003 the group is forecasting a 5% growth of its turnover.
The Board of Directors decided to propose to the next Shareholders' Annual Meeting the payment of a net dividend (excluding the tax credit) of €0.32.
GL events, bringing people together
Managing Director Corporate Finances and Administration : Erick ROSTAGNAT
Telephone : + 33 4 72 31 54 20
Fax : + 33 4 26 20 42 00
Email : email@example.com
Code ISIN : FR0000066672
Code Bloomberg : GLO FP
Code Reuter : GLTN.PA
Code FTSE : 581