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
|Millions of euros||2003||2002||Change|
|Consolidated sales||339,8||301,9||+ 12.6 %|
|EBIT||26,0||22,5||+ 15.5 %|
|% of sales||7,65%||7,45%|
|Net financial expense||(2,2)||(3,1)|
|Amortization of goodwill||(1,7)||(1,5)|
|Tax and minority interests||(8,5)||(7,8)|
|Income excluding exceptionals and goodwill||15,3||11,6|
|Net attributable profit||12,8||11,0||+ 15.5 %|
Further gains in profitability
In 2003, the good level of activity (sales up 12.6% including 8.3% for organic growth) combined with further gains in margins resulted in EBIT of €26 million, up 15.5% in relation to 2002.
The total EBIT margin rose to 7.65% versus 7.45% in 2002 and 7.25% in 2001.
This improvement reflects:
- significant gains in the margin for Global Services (6% to 7.3%) and Venue and Event Management (9.9% to 11.3%) despite a decline registered by Fittings, currently being repositioned (9.6% to 5.9%).
- the increasing importance of Venue and Event Management in the mix of total consolidated sales (11% in 2002 to 17.5% in 2003)
Goodwill amortization recorded in 2003 represented €1.7 million compared with €1.5 million in 2002. Net attributable profit accordingly stood at €12.8 million versus €11 million in 2002, an increase of 15.5%.
A strengthened financial situation
Generating significant cash flows and with a structurally negative WCR, the Group has a sound financial situation which was further strengthened by the successful equity issue of July 2003. At 2003 year-end, gearing accordingly stood at 36% versus 59% in 2002.
With its significant financial resources, GL events will actively pursue internal and external growth opportunities. Its principal growth vectors continue to be its portfolio of venues under management, international markets, the acquisition of additional market share in global services and corporate and event engineering.
"GL events produced an good performance in 2003, registering growth of 12.6% in sales and 15.5% in net income. The favourable response by our shareholders and financial partners to the equity issue of July 2003 has given us additional financial resources. This enables us to pursue our growth strategy under optimal conditions, continuing to balance strong commercial growth with acquisitions which enhance the group's earnings potential. Under these conditions, we remain particularly confident about the prospects for sustained growth." stated Olivier Ginon, Chairman.
Venue and Event Management will maintain its growth trajectory which will be boosted in 2004 notably by the full-year contribution of Europa Organisation, two Clermont-Ferrand venues and the development of the Paris Floral Park.
While sales from Fittings are expected to decline, Global Services will in contrast benefit from contributions from Athens Olympic Games (€15mn) and the Barcelona Universal Forum of Cultures (€10mn). In 2004, the contribution to revenue of large world events will exceed the performance registered in 2003.
The responses to invitations to tender concerning the management of major venues of the Grand Palais and the POPB are also awaited in 2004.
Given these favourable trends for sustained long-term growth, a high recurrency rate of its business and a situation which is already promising, the group forecasts growth in sales of approximately 5% in 2004.
At the next General Meeting, the Board of Directors will ask shareholders to approve a dividend excluding the credit for income tax already paid (avoir fiscal) of €0.37, representing an increase of 15.6%.
2004 first-quarter sales on 21 April 2004 (after the close of trading)
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