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
SALES GROWTH AND GAINS IN MARGIN IN THE FIRST HALF
|M€||H1 2007||H1 2006||Change|
|Net financial expense||(1,4)||(1,6)||-|
|Income before taxes||29,6||19,2|
|Net income of fully consolidated subsidiaries||20,2||13,4||+50,9%|
|Net income before minority interests||20,3||13,1||+54,5%|
In the 2007 first half GL events sales rose 32.6% over the equivalent prior year period to €333.9 million. At comparable structure and exchange rates sales grew 28.5%.
Venue and event management accounted for 52% of first-half sales for €172 million, up 53.5%. Synergies between the Group's two complementary businesses and presence of GL events on major events such as the World Cup of Cricket boosted the performance of Services. As a result, the latter grew 15.8% in the period to €162 million.
Operating profit totalled €31 million, advancing 49.3% compared to H1 06, accompanied by a one point gain in the operating margin to 9.3%:
- Venue and event management pursued its expansion with an operating margin of 15.9%.
- Services remain superficially affected by the recognition of part of its margin under the results of the Venue and event management division (for services sold through the venues). Operating profit of the business totalled €3.7 million or 2.3% of sales. The Group has moreover taken measures to improve the margin of the activity of installations that registered a decline in the first half.
Benefiting from an effective management of financial charges, net income of fully consolidated subsidiaries increased 50.9% giving a net margin of 6%.
CASH FLOW AND BALANCE SHEET AT 30 JUNE 2007
Cash flow increased 27% to €30.5 million. Use of working capital totalled €14.6 million in the first half, reflecting the seasonal trends of GL events' activity. Operating cash flow totalled €21.9 million. In the first half, the Group made significant capital expenditures for €30 million, notably for Venue and event Management in Rio de Janeiro and Budapest.
The positive performances in the first half 2007 strengthened the balance sheet of GL events at 30 June. Shareholders' equity totalled €224.9 million with borrowings of €79.3 million for a gearing of 35%. The continued expansion of venue management enables the group to progressively build up working capital funds (negative WCR) that totalled €45.6 million at 30 June.
After taking into account the acquisitions of Agor and Promotor, finalized in July, borrowings of GL events totalled €257 million at 31 August 2007 for a gearing of 112%.
GL EVENTS SIGNED THE MANAGEMENT OF AN EXCEPTIONAL SITE IN THE HEART OF PARIS
GL events signed the management of the Hôtel Salomon de Rothschild in partnership with Ludéric Evénements. Located in the heart of Paris 8th, this 1.400 m² venue includes a garden of 2.200 m². The Hôtel Salomon de Rothschild represents an exceptional historical site for the hosting of corporate and cultural events.
Currently under renovation, the site will be re-opened in September 2008 and should generate sales on a full-year basis of €6 million. It will benefit from the Group's event organization resources and its proximity to major customers to promote the qualities of the venue.
This new concession strengthens the Group's position in the French capital, increasing the portfolio of venues held or managed by the Group to 24, representing total available space of 976.000 m².
CONFIRMATION OF 2007 OBJECTIVES
GL events is a contributor to the Rugby World Cup, having been selected for three calls for tender for temporary installations, including the hospitality facilities for the Stade de France and 12 cities currently hosting the events (France + Cardiff and Edinburg). In the second half, GL events will produce, among others, one of the major events in Brazil, the Biennial International Book Fair of Rio de Janeiro, in Italy the Flormart International Exhibition of Gardening and Floriculture in Padua and in France the Equita International Horse Show in Lyon.
The Group maintains its targets for 2007 for:
- Sales growth of 25% or annual sales of €620 million
- Gains in margins.
2007 third-quarter sales: 23 October 2007 (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
Erick Rostagnat - Managing Director Corporate Finances and Administration:
Tel : +33(0)4 72 31 54 20