Rekeep S.p.A.: The Board of Directors approves the Interim Report on Operations at 31 March 2020, which shows a rise in all the main indicators, mainly driven by growth in foreign markets, in spite of the grave emergency and difficulties generated by Covid-19 both in Italy and worldwide

Consolidated highlights for the first quarter of 2020 (compared to the first quarter of 2019)[1]:

  • Revenue: €271.2 million (+13.3% compared to €239.3 million at 31 March 2019);
  • EBITDA: €2 million (+11.5% compared to €28.9 million at 31 March 2019);
  • EBIT: €21.1 million (+10.8% compared to €19.0 million at 31 March 2019);
  • Net Profit: €7.2 million (tripled, compared to €2.4 million at 31 March 2019);
  • Net Financial Indebtedness: €334.8 million (showing an improvement compared to both €366.6 million at 31 December 2019 and €384.8 million at 31 March 2019).
  • Tendered and renewed existing contracts: €224 million (showing a sharp increase compared to €48 million at 31 March 2019);
  • Total portfolio of tendered and renewed existing contracts: €2.9 billion (+15.1% compared to €2.5 billion at 31 March 2019).

Zola Predosa (Bologna), 14 May 2020 – The Board of Directors of Rekeep S.p.A. (“Rekeep”), parent company of the leading Italian group operating in the Integrated Facility Management sector, met today under the chairmanship of Giuliano Di Bernardo, examined and approved the Interim Report on Operations at 31 March 2020, which shows a sharp increase in net profit, turnover (+13.3%) and profit margins (EBITDA: 11.5%; EBIT: +10.8%), as well as a rise in commercial activity with acquisitions and renewals of major contracts mainly as a result of growth on international markets.

“2020 is going to be a complex year for Rekeep, as well as for everyone, and the exceptional impacts of the COVID-19 pandemic will be more conspicuous in the second quarter of the financial year. However, we are confident in the resilience of our Group and our business activities: we have strictly implemented all health and safety protocols to protect all our employees, who are reacting proudly and proactively to the current emergency. Furthermore, as demonstrated by  today’s figures, we now can also take advantage of the diversity of the markets, thanks to our present substantial footprint at international level. We are going to face challenging months in which we will be called upon to make decisions in a timely fashion to manage the emergency on a daily basis, but we will strive to mitigate and prevent impacts on our business with the promptness and flexibility that have always been distinguishing us”, said Giuliano Di Bernardo, Chairman and Chief Executive Officer of Rekeep S.p.A..

Preamble

The rise in Revenues and EBITDA, as well as in Net Profit, during the first quarter of 2020 compared to the first quarter of 2019, was mainly due to the consolidation in the accounts of the results of subsidiary Naprzod SA, the leading healthcare facility management company in Poland acquired on 31 October 2019, which was a veritable turning point in the Group’s international growth, as well as to the acquisition of major orders in France and Turkey. The Group therefore recorded a further increase in revenues and profit margins for the eighth consecutive quarter, despite the fact that the effects of lower business volumes owing to the lockdown were only partially offset by a higher demand for healthcare services, in fact owing to the emergency. Therefore, from the 2020 financial year International Markets are considered to be an integral part of the Group’s core business.

Rekeep Group main Consolidated Results at 31 March 2020

At 31 March 2020, Revenue for the Rekeep Group came to €271.2 million, up by 13.3% compared to €239.3 million in the first quarter of 2019. This increase was mainly attributable to the contribution given by the Group’s foreign subsidiaries.

EBITDA[2] amounted to €32.2 million, showing an improvement of 11.5% compared to €28.9 million recorded at 31 March 2019.

EBIT was €21.1 million, showing an improvement of 10.8% compared to €19.0 million achieved in the same period of 2019.

Net Profit at 31 March 2020 was €7.2 million, tripled compared to €2.4 million at 31 March 2019.

Net Financial Indebtedness at 31 March 2020 amounted to €334.8 million, showing a sharp improvement compared to both €366.6 million at 31 December 2019 and €384.8 million at 31 March 2019.

Business highlights

During the first quarter of 2020, the Rekeep Group won tendered contracts and renewed existing contracts generating new orders for a long-term overall amount of about €224 million, showing an improvement of 366% compared to €48 million at 31 March 2019. Specifically, total contracts awarded on international markets amounted to about 50% of total orders gained during the period (about €67 million in Poland, about €40 million in France and about €4 million in Turkey). In particular, among these were awards of major tenders in Poland for cleaning, catering and medical transportation services for local healthcare facilities and big healthcare contracts in Italy. Furthermore, the Group was awarded a new major 6-year contract in France for the provision of cleaning services on board trains of SNCF – Société Nationale des Chemins de fer Français, the National company of French railways, in the region of Normandie – Paris St Lazare. Furthermore, the subsidiary Servizi Ospedalieri S.p.A. gained laundering contracts with hospital facilities for €26 million, in addition to sterilization and supply of surgical kits for €15 million.

At 31 March 2020 the Rekeep Group’s Backlog was therefore €2,854 million, showing a sharp increase (+15.1%) compared to €2,479 million in the same period of 2019.

[1] On 13 February 2020 the binding agreement was signed for the sale of the total share capital of subsidiary Sicura S.p.A.. According to IFRS5 the transaction has been reported as “Discontinued operation” and the results of operations for the period until the date of sale have been recognised as “Result from discontinued operations.” Likewise, the respective comparative results of operations have been restated and reclassified to the same income statement item.

[2] 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 the 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 it 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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