Record six months for Altrad
By Euan Youdale27 March 2018
Altrad Group has delivered record revenue and earnings in the first six months of its 2018 financial year.
The group’s revenue of €1,678 million, up 61.2% from €1,041 million on the same period last year surpassed internal expectations, said the company. As did its EBITA of €205 million, a rise of 42.4% on the 2017 figure of €144 million. The EBITA margin for the period was 2.2%, slightly down on the previous half at 13.8%.
Besides the company’s core sectors: construction, oil & gas, process industries and power generation, 82% of Altrad’s turnover is now generated from services, with the remaining 18% from the group’s traditional equipment business.
As of the end of February 2018, Altrad had a total backlog of €2,782 million, of which €815 million are on services due for delivery in the current fiscal year. This underpins the management’s confidence the momentum will be maintained to deliver record earnings for the full year, ending 31 August 2018.
The group’s solid EBITDA margin of 12.2% was marginally lower than the same period last year and was impacted by the one-off integration costs associated with the acquisition of Cape, as well as the seasonality of the business which typically achieves higher margins in the second half of the fiscal year. As such, a higher EBITDA margin is expected by the end of the fiscal year.
More than one third of the Group’s activity now occurs outside of Europe, and just under one third in the UK. Altrad has consolidated its position in key markets around the world, with a focus on Europe, Australia, Middle East, Africa and Asia.
Commenting on the Results, CEO Louis Huetz said, “These results showcase the strength and breadth of our expanded business. Our business is underpinned by strong cash flow and profitability, and our strategic focus on Services now provides good visibility on future revenue with a secured order book of nearly €3 billion for delivery over the next few years.
“The completion of the Cape acquisition has enabled the creation of a stronger and more balanced business capable of delivering multi-disciplinary services to industry leaders throughout our chosen markets. The organic growth opportunities for the business remain compelling as we leverage our industry leading platform to achieve better synergies and demonstrate to our client base the benefits of our greater geographic footprint and diversified services.”