/ The board of directors of Manitou BF, meeting on this day, approved the accounts for 2019. Michel Denis, President and Chief Executive Officer stated: "With a revenue of more than €2 billion and a net profit of €96 million, Manitou Group ended the 2019 financial year on an all-time high. In line with our strategy, we continued to develop both geographically and in terms of expanding our product and service ranges. This performance was the result of the strengthening of our worldwide presence, particularly in the United States, the implementation of additional research and development resources and the increase in production capacity undertaken year after year.
In a general economic slowdown since mid-2019, the Group's business has been gradually reduced while maintaining a good increase in our profitability during the year. As a result, our recurring operating income increased by 15% compared to 2018 and stands at 7.1% of sales.
Since the beginning of 2020, we have been seeing good order intake and very limited effects of export restrictions from China. We anticipate, for 2020, a 10% decrease in sales compared to 2019 and, taking into account the above-mentioned factors, a current operating profit of around 6% of sales, with uncertainty about the impact of the coronavirus, not estimated at present time".
Percentage figures in brackets express a percentage of turnover.
First-time application of IFRS 16 standard as from 1 January 2019 (the financial impacts are described in appendix; no restatement for 2018)
Auditing procedures performed
* like for like, at constant scope and exchange rate:
- for 2019 acquisitions (Mawsley Machinery Ltd at the end of October 2019), subtraction of their contribution, from the date of their acquisition, to December 31, 2019. There is no exit in 2019. There is no acquisition nor exit in 2018.
- application of the prior year's exchange rate
** at constant accounting standard (IAS17)
1 EBITDA: Earnings before interest, taxes, depreciation, and amortization, restated from IFRS 16 impact
2 Gearing : Financial ratio measuring the net debt divided by shareholders' equity, restated from IFRS 16 impact .
/ Business review by division
The Material Handling & Access Division (MHA) reported revenue of €1,456 million in 2019, up +13% compared to 2018 (+12% at constant exchange rate and scope).
The division continued its capacity building and innovation efforts. The construction of a new production site for aerial work platforms has been initiated, with work scheduled to begin in early 2021.
The MHA division's recurring operating income thus rose by €16.3 million (+16.3%) to €116.3 million (8.0% of sales) compared with €100.0 million in 2018 (7.7% of sales).
The Compact Equipment Products Division (CEP) achieved revenue of €328 million in 2019, a rise of +5% over the 12 months (+1% at constant exchange rate and scope).
The division's performance was impacted by recurring difficulties in recruiting staff for production sites and by the strengthening dollar, which had a negative impact on the profitability of products exported from the United States. In addition, the division was affected by the shutdown of its main US site (Madison), which was blocked for six weeks due to flooding, the financial impact of which was almost entirely covered by insurance.
Taking into account these elements, the CEP division's recurring operating income is down to € 2.4 million (0.7% of sales) compared to € 9.4 million in 2018 (3.0% of sales).
With sales revenues of €309 million, the Services & Solutions Division (S&S) recorded a +12% sales increase year-on-year (+11% at constant exchange rate and scope). The strongest growth in revenue was recorded in the service activities that have been strengthened over the last few years. The development of service activities provides the division with greater profitability and resilience.
As a result, the division's profitability has increased by 50% to €30.0 million, or 9.7% of sales (7.2% in 2018).
/Dividend proposed at the next Shareholders' Meeting
The Board decided to propose a dividend payment of €0,78 per share at the next Shareholders' Meeting, which will be held on 18 June 2020.
/ Coronavirus crisis
Due to its worldwide presence and global activities, the group is likely to face the effects of the coronavirus crisis in many ways (supply disruption, market downturn or blockage, temporary site closure, absenteeism, etc.).
As of the date of publication of this information, the group has not been affected by any direct material impact likely to call into question its revenue forecast for 2020. The recent extension of the territories concerned by the coronavirus to Europe, particularly Italy, could have a greater impact, in the coming weeks, on certain supplies, including second-tier supplies, on the industrial activity of some sites or on the accessibility and performance of specific markets.
