Rekeep S.p.A.: The Board of Directors approves the draft Separate and Consolidated Financial Statements at 31 December 2019, which show a fresh rise in revenues and profit margins, as well as in the order backlog

Consolidated highlights for 2019 (compared to 2018 and adjusted by the effects of changes in accounting standards)[1]:

  • Revenue: €1 billion (+6.0% compared to €949.9 million at 31 December 2018);
  • Normalized EBITDA[2]: €113.6 million (+2.5% compared to €110.8 million at 31 December 2018);
  • Normalized EBIT2: 6 million (+4.9% compared to €70.2 million at 31 December 2018);
  • Net Profit(*): €3.4 million (compared to €15.8 million at 31 December 2018);
  • Tendered and renewed existing contracts: €727 million (+12.3% compared to €647 million at 31 December 2018);
  • Total portfolio of tendered and renewed existing contracts: €2.8 billion (+9.0% compared to €2.6 billion at 31 December 2018).

(*) It should be noted that the Net Profit at 31 December 2019 relates to a different consolidation perimeter from that for the period ended 31 December 2018 and therefore the comparison is not significant. It is in fact noted that the merger of CMF S.p.A. into its subsidiary Rekeep S.p.A. became effective on 1 July 2018.

Zola Predosa (Bologna), 24 March 2019 – The Board of Directors of Rekeep S.p.A. (“Rekeep”), the parent company of the leading Italian group in the Integrated Facility Management sector, met under the chairmanship of Giuliano Di Bernardo, examined and approved the draft Separate and Consolidated Financial Statements at 31 December 2019, which show an additional increase in revenues and profit margins, for the seventh consecutive quarter, as well as in tendered and renewed existing contracts and total portfolio.

The 2019 financial year once again confirmed our Group’s strong trend of rising revenues and profit margins, thanks to the good performances recorded in all the last quarters. The numbers both of new contracts and of those in our total consolidated portfolio are also continuing to rise, a circumstance that makes us even more confident of the medium- to long-term development of our business,” stated Giuliano Di Bernardo, Chairman and Chief Executive Officer of Rekeep S.p.A. “As regards the situation caused by the worldwide spread of Coronavirus Covid-19, our Group remains fully operational. The personnel in our headquarters services and staff work remotely apart from the exceptions necessary to ensure our Company’s normal operations. The services we deliver in the healthcare area, both in Italy and abroad, which account for about 60% of our activities, are, in fact, absolutely essential for the functioning of hospitals and for providing fundamentally important services in support of medical care. Both Rekeep and our subsidiary Servizi Ospedalieri are responding to requests for enhanced services from public and private hospitals. “We are also continuing to work as normal in various sectors that provide essential services, such as telecommunications, large-scale retail trade or banking. On the contrary, some variations in business volumes may occur as a result of the closure of schools, museums, store chains, a part of the transport and private firms. On account of these interruptions or reductions in our activities, Group companies will make use of the various types of social shock absorbers provided by the Italian Government in order to ensure the continuity of employment of the workers involved and a reduction of costs consistent with the fall in the revenues for the period.”

Rekeep Group main Consolidated Results at 31 December 2019

As of 31 December 2019, Revenue for the Rekeep Group was more than €1.0 billion, up by 6.0% compared to €949.9 million in 2018. This rise was driven by the facility management business and by the laundering sector, as well as by the performance recorded by the Group subsidiaries.

EBITDA[3] (Margine Operativo Lordo) came to €101.5 million, showing an improvement of 2.4% compared to €99.2 million at 31 December 2018. Net of non-recurring and start-up costs, Normalized EBITDA2 was €113.6 million, up by 2.5% compared to €110.8 million at 31 December 2018.

EBIT (Risultato Operativo) was €59.5 million, showing an improvement of 3.4% compared to €57.5 million in the previous year. Normalized EBIT2, net of non-recurring and start-up costs, was €73.6 million, showing an improvement of 4.9% compared to €70.2 million in 2018.

Net Profit was €3.4 million at 31 December 2019 compared to €15.8 million at 31 December 2018. It should be noted that, however, with effect from 1 July 2018, the merger of CMF S.p.A. into its subsidiary Rekeep S.p.A. became effective and that, therefore, the Rekeep Group’s Net Profit for the 2019 financial year was not very significant compared to that achieved at 31 December 2018, since the latter included CMF S.p.A. in the scope of consolidation for two quarters only.

Net Financial Indebtedness at 31 December 2019 was equal to €366.6 million, substantially in line compared to €347.4 million at 31 December 2018. However, the figure for the 2019 financial year included the financial liability for operating leases following the first-time adoption of the new IFRS16 – Leases from 1 January 2019. Net of this accounting adjustment, Net Financial Indebtedness at 31 December 2019 would be equal to €323.7 million compared to €298.8 million at 31 December 2018 and substantially in line with €320.4 million at 30 September 2019.

Business highlights

During the 2019 financial year, the Rekeep Group won tendered contracts and renewed existing contracts for a long-term aggregate amount of about €727 million, showing an improvement of 12.3% compared to €647 million at 31 December 2018.

As of 31 December 2019, the Rekeep Group won tendered contracts, or renewed existing contracts, for €2.8 billion, showing a sharp rise (+9.0%) compared to €2.6 billion in the 2018 financial year.

Main events occurred after 31 December 2019

On 28 February 2020, Rekeep completed the transfer of the entire share capital of Sicura to Argos Wityu, a pan-European Private Equity fund with a track record of over thirty years. The transaction has an Enterprise Value of €54.5 million. This transfer falls within the scope of Rekeep’s strategy of focusing on its core business, including through the sale of non-strategic assets, and allows the Group to free up financial resources for the implementation of the Business Plan, which includes – among its priority activities – development on international markets. The transaction was completed with Argos Wityu establishing a newco which holds control over Sicura S.p.A. and which sees, as minority shareholders, the management of Sicura itself with a 4.5% investment and Rekeep with a 6.0% investment, with the aim of maintaining an industrial partnership with the Sicura Group.

[1] All the figures in this release take into account the impacts of the first-time adoption of the new IFRS 16, applicable from 1 January 2019.The adoption of this Standard led Rekeep to adapt its financial indicators:

  • EBITDA no longer includes operating lease costs, while EBIT and Net Profit for the period include the depreciation of the right of use asset and interest on lease liabilities;
  • Net Financial Debt includes the financial liability for operating leases calculated as the present value of future lease payments.

[2] Normalized EBIT and Normalized EBITDA: values net of start-up costs (B2C and international development), as well as “non-recurring” income components or costs for operations that are not repeated frequently in the normal course of business and that have a significant impact on the Group companies’ financial position, results of operations and cash flows.

[3] “EBITDA” is defined as operating income before accrual to the provisions for risks and charges and amortization/depreciation, write-downs and write-backs of assets. EBITDA is used by management to monitor and assess the group’s performance and is not an accounting measure under IFRS. Accordingly, EBITDA should not be considered as an alternative to assess the Group’s performance. In view of the fact that EBITDA is not regulated by accounting principles, our determination of EBITDA may differ from the determination made by other companies and may therefore not be comparable to the latter.

Rekeep S.p.A.

Rekeep S.p.A. (“Rekeep”) is the leading Italian operator and one of the main European players in the Integrated Facility Management sector, i.e., it manages and provides integrated services targeted at properties, the environment and in support of healthcare services. Specifically, the services provided by the Rekeep Group are divided into two main business areas: 1. Integrated Facility Management – property management and maintenance services (environmental hygiene, technical and maintenance services, landscaping, logistics, auxiliary services, heat management, lighting, document management, fire prevention and video surveillance systems) delivered also through specialized companies; 2. Laundering & Sterilization – linen rental and industrial laundering services and linen and surgical instruments sterilization for healthcare operations, delivered through the subsidiary Servizi Ospedalieri S.p.A.. Rekeep’s headquarter is located in Zola Predosa (Bologna) and employs more than 27,000 people in Italy and abroad.

Rekeep / Press Office
Chiara Filippi
Ph. +39 051 3515195 / cfilippi@rekeep.com

Image Building / Media Relations
Alfredo Mele, Carlo Musa, Alessandro Beretta
Ph. +39 02 89011300 / rekeep@imagebuilding.it

Rekeep / CFO and Investor Relations
Luca Buglione
Ph. +39 051 35 15 546 / investor@rekeep.com

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