The group thus closed the 2018 financial year with 18% growth in revenue and a current operating income of 6.9%, up 90 basis points compared to 2017. Excluding the effects of exchange rates, scope of consolidation and changes in IFRS accounting standards, our revenue growth was even 19%, and our operating income was 7.3%.

We should also note the 40% increase in our net income, which led the Board of Directors to propose a dividend of 0,78 euro per share at the next Shareholders' Meeting.

The dynamics of our order intake and the volume of our backlog allow us to confirm, all other things being equal, our expectation of revenue growth of around 10% for 2019, combined with an improvement in the percentage of profit from recurring operations of around 40 basis points."

	MHA	CEP	S&S	Total	MHA	CEP	S&S	Total
In millions of €	2017	2017	2017	2017	2018	2018	2018	2018	Var.
Net sales	1095,2	244,0	251,7	1591,0	1 294,1	313,5	276,0	1 883,6	+18%
Sales margin	163,3	29,6	65,7	258,6	198,1	43,0	72,7	313,8	+21%
Sales margin as a % of sales	14,9%	12,1%	26,1%	16,3%	15,3%	13,7%	26,3%	16,7%
Recurring OI	75,9	0,1	19,3	95,3	100,0	9,4	20,0	129,3	+36%
Recurring OI as a % of sales	6,9%	0,0%	7,7%	6,0%	7,7%	3,0%	7,2%	6,9%
OP.	71,0	0,3	19,0	90,3	97,4	9,0	19,7	126,1	+40%
Net income attributable to the group	n/a	n/a	n/a	60,0	n/a	n/a	n/a	84,1	+40%
Net debt				76,0				148,1	+95%
Shareholder's equity				533,1				597,0	+12%
% Gearing (2)				14%				25%
Working capital				433				536	+24%

 

Auditing procedures performed *IFRS 15 applied from January 1st, 2018, without 2017 restatement (cumulative catch-up method)
** at constant scope, accounting standard and exchange rate:
- For 2017 acquisitions (Manitou Equipment India in May 2017 and LiftRite at the end of July 2017), subtraction of their contribution, from January 1st of the current year, to the anniversary month of their acquisition. There is no acquisition nor exit in 2018
- Application of IAS 18 on the aggregates of the current year
- Application of the exchange rate of the previous year on the aggregates of the current years
(1) EBITDA: Earnings before interest, taxes, depreciation, and amortization
(2) Gearing : Financial ratio measuring the net debt divided by shareholders' equity.

Business review by division

The Material Handling & Access Division (MHA) reported sales of €1,294 million in 2018 against €1,095 million in 2017, a growth of +18% (+20% at constant exchange rate, accounting standard and scope). The division has made investments at all its sites to accelerate its production. This programme will be continued in 2019, with the launch of the construction of a new production site for aerial platforms.

Over the financial year, the division's current operating income rose by 31% to reach the €100.0 million threshold and represented 7.7% of revenue, up 80 basis points compared to 2017.

In addition, the infringement proceedings received in May from a competitor continued during the second half of the year, however, no provision was made in the accounts.

The Compact Equipment Products Division (CEP) reported sales of €314 million in 2018, a rise of +28% against 2017 (and +28% at constant exchange rate, accounting standard and scope). Operating in the United States in a context of labour shortage and customs tariff increase, the division has nevertheless successfully delivered the group's strongest growth and significantly improved its profitability. Recurring operating income is set at €9.4 million, representing 3.0% of revenue compared to 0% in 2017.

With sales revenues of €276 million, the Services & Solutions Division (S&S) recorded a +10% sales increase in its activity (+8% at constant exchange rate, accounting standard and scope) against 2017. All the division's activities are progressing, with a more constrained margin level for the distribution of spare parts. Projects have been deployed to systematize equipment connectivity from January 2019, as well as to better support sales financing.

The division's recurring operating income improved from €19.3 million in 2017 to €20.0 million in 2018, representing a rate of 7.2% of revenue.  

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 13 June 2019.

2019 Outlook

Anticipation an increase of around +10% in sales revenues, at constant exchange rates, and an improvement in recurring operating income of around 40 base points, equivalent to approximately 7.3% of sales revenues.