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
|Net financial expense||(1,6)||(0,5)||-|
|Income before taxes||19,2||16,6|
|Income tax, equity-accounted investments & minority interests||(7,1)||(6,9)||-|
Sales and earnings growth
GL events registered another six-month period of double-digit growth. Net sales grew 14.5% to €251.9 million boosted by robust gains by Venue and Event Management of 35.7%. At 30 June 2006, the share of this activity in total sales increased to 44.5%.
Gains by operating profit outpaced sales, increasing 21.1% to €20.8 million. This performance reflected:
- 41.5% growth in operating profit from Global services to €5.8 million. The division's operating margin increased in consequence from 2.9% in the 2005 first half to 4.1%, in line with the Group target range for the period.
- The accelerated expansion of Venue and Event Management with operating profit of €15 million accompanied by an excellent operating margin of 13.4%.
In this same period the Group operating margin improved further, advancing to 8.3%. Net income rose 25.3% to €12.1 million. This performance was driven by rapid growth of the Venue and Event Management division combined with commercial synergies achieved with the Group's business of Global Services.
Competitive advantages from a solid balance sheet and capital resources
Cash flow represented 10% of sales or €25.2 million in the first half assuring the Group the resources to finance its ambitious strategy of internal growth and expansion through acquisitions. This performance was accompanied by a healthy and solid balance sheet with shareholders' equity of €184.8 million. Gearing stood at 43.5% and GL events benefited from a negative WCR of €17.3 million.
Very positive short and medium-term growth outlook
In the first half, GL events maintained its successful track record of expertise, reconfirming the strength of its business model. On this basis the Group established new positions in Brazil in Venue and Event Management with the addition of the Rio de Janeiro Exhibition Centre, in event organization with Fagga Eventos and Global Services with a contract of more than €20 million for the Pan-American Games. Brazil represents a growth model involving the addition of premium worldwide event destinations that GL events will develop in the future.
Sustained by positive trends of the event industry, GL events will pursue its strategy of expansion.
As the leading integrated industry provider, the Group has many competitive advantages:
- A comprehensive offering high value added solutions,
- A unique range of expertise and assets,
- Significant investment capacity and a solid balance sheet,
- A successful track record of development by combining organic growth and acquisitions,
- Optimal diversification of risks: geographical, client, business
- A growing share of recurrent sales.
On this basis, the group maintains its targets of:
- 14% growth in sales for 2006 accompanied by a further improvement in its operating margin,
- Net sales of €700 million by 2008.
The shareholders' equity of Polygone SA, GL events' majority shareholder and holding company for the shareholdings of its key senior executives, was increased by €8 million through different equity subscriptions by two new shareholders Salvepar and Crédit Agricole Private Equity along with two historical institutional shareholders, Banque de Vizille and Aquasourça. This has provided Polygone SA with additional resources to finance, if needed, the development of GL events.
Publication of 2006 third-quarter sales, 24 October 2006 (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