PRISMAFLEX expects to return to growth in 2021/22 after a difficult year in 2020/21

  •   05/07/2021 - 08h06
  •   DEHOUI Lionel

In 2020/21, Prismaflex International's activity took place in an unprecedented health and economic context. It was penalized by the Covid-19 health crisis. However, the company showed strong resilience, enabling it to reduce the effect of this crisis on its economic indicators. Moreover, the group remains optimistic for a normal recovery of its business in 2021/22 with a return to clear growth over the entire new financial year.

PRISMAFLEX expects to return to growth in 2021/22 after a difficult year in 2020/21

Annual performance for the 2020/21 financial year

For its 2020/21 financial year (ending March), Prismaflex International recorded an estimated group share loss of €1.29 million compared to a loss of €2.45 million a year earlier. For the whole financial year, the company's Ebitda was 0.84 million euros compared to 2.44 million euros the previous year.

It was thus divided by 3 over the period of one year. In 2020/21, the billboard manufacturer generated annual sales of EUR 36.69 million. This is 22.5% lower than the figure recorded for the 2019/20 financial year (€51.23 million). This underperformance of the turnover takes into account the fall in the Print business during the financial year.

It fell by 23% to €24.9 million. This decline is due to the considerable impact of the health crisis on the more traditional activities (posters, event and promotional banners). On the other hand, the Hardware business (excluding the USA) grew by 11.4% over the year. 13.1 million, driven by strong growth in LED panel sales in Europe and Latin America.

 

Financial situation affected by the health crisis

As at March 31, 2021, Prismaflex International had a cash position of 3.3 million euros. It is supported by the subscription of new net loans valued at €2.6 million (including €2.4 million of EMP). These loans will be held for a period of 5 years. At the end of the 2020/21 financial year, the Group 's net debt stood at €12.8 million.

Excluding IFRS 16, it amounts to €11.5 million compared to €9.6 million at the same date last year. At the end of March 2021, the company 's equity stood at 10.9 million euros. It was penalized by the net loss recorded during the year and the change in the consolidation method of Anthem Displays.

The net financial debt to equity ratio (gearing) was 1.08. Before IFRS 16, it stood at 1.05, compared with 0.51 at the end of March 2020.

 

Outlook for the 2021/22 financial year

For the 2021/22 financial year, Prismaflex International 's main objective is to return to significant and profitable growth. To achieve this goal, the group hopes to reap the benefits of its commercial and cost optimization actions. Also, for the new financial year, the company expects a positive free cash flow.

This will support a gradual reduction in the company's net debt. At the beginning of the financial year 2021/22, the available order book is solid at 11.5 million euros. This shows that the group's activity is gradually picking up. Thus, in the first quarter of this new financial year, Prismaflex expects its overall activity to reach a level close to that of the pre-crisis period.