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 income: +30.5%
Growth targets for 2006 sales exceed 10%
|As % of sales||7,65%||7,20%||-||7,9%|
|Net financial expense||-2,1||-2,1||-||-2,3|
|Net income of fully consolidated companies||21,1||15,9||32,4%||14,8|
Strong across-the-board growth
GL events Group continued to produce profitable growth in 2005 as margins improved in response to a 29.8% surge in EBIT to €33.2 million.
This further rise in the EBIT margin to 7.65% reflects the growing contribution of Venue and Event Management (now accounting for 35% of sales) and GL events' unique positioning covering the entire event industry spectrum.
With net financial expenses unchanged in 2005, net income surged sharply 30.5% to €20 million.
Venue and Event Management (sales of €149.1 million) registered particularly strong gains (organic growth of 25.5% and overall growth of 81%). The operating profit of this division was €17.6 million or 11.8% of sales.
Global Services also posted solid gains, advancing 4.4% to €285.1 million with an operating profit of €15.6 million and a margin of 5.5%. This performance includes the costs from restructuring a subsidiary in the United Kingdom. In addition, operating profit of approximately €1.7 million generated by Global Services was booked by Venue Management. Finally, this division participated in a number of prestigious events among which may be noted the World Summit on the Information Society in Tunis, the Euromed Summit in Barcelona, the launching of the A380 Airbus.
With cash flows of €44.3 million representing more than 10% of sales, a free cash flow increasing sharply to €20.4 million and a gearing of 38.8% GL events' financial position is particularly sound. On this basis, the General Meeting of 19 May in Lyon will be asked to approve a dividend per share of €0.52, an increase of 26.8%.
A proactive investment strategy for sustained profitable growth
Through its strategy upstream integration of event industry services, GL events has achieved a unique market position based on a comprehensive offering. By integrating its full range of expertise in event design, organization and hosting, the group has successfully responded to market demand for integrated high added value solutions.
GL events will pursue this strategy, notably by expanding its network of venues and developing its ability to design and duplicate events in area and with international one. The successful capital increase of November 2005 provided it with additional resources to finance this growth and achieve its sales target of €700 million for 2008.
In 2006, GL events will be present at a large number of events, providing an increasing contribution to their design, hosting and associated services. The cities of Clermont-Ferrand and Saint-Etienne renewed their confidence in the group by entrusting it with the management of their convention centres through concession agreements for an additional 10 and 12 years respectively. In addition, the extension of the Lyon Convention Centre which will double of size with in particular the hall with a 3,000-seat capacity, will be put into service in June.
Noteworthy events of 2006 first-half will include:
- The Commonwealth Games in Melbourne, in the second week of March,
- The FIFA World Football Cup in Germany in June with orders for approximately €4.5 million,
- The Toulouse International Trade Fair, organized and hosted by the Toulouse Exhibition Centre,
- The Cannes Film Festival, in May,
- The Barcelona F1 Grand Prix, on 12 to 14 May, for which the contract has been renewed to 2011,
- Congrès Euro PCR, in the first half of May, organized by Europa Organisation aso...
Based on favourable trends for the event communications sector, visibility provided by current orders and acquisition projects, the group announces sales guidance for sales growth in 2006 exceeding 10%.
Publication of 2006 first-quarter sales, Tuesday 25 April 2006 (after trading hours)
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 : firstname.lastname@example.org
Code ISIN : FR0000066672
Code Bloomberg : GLO FP
Code Reuter : GLTN.PA
Code FTSE : 581