“FY 2018-2019 was an excellent year for the Group, with revenue growth of 62% accompanied by a marked improvement in profitability. EBITDA increased fourfold year-on-year, with positive net cash flow from operating activities of €15 million.
During the period, we demonstrated, once again, our ability to boost the performance of our businesses. In the Internet sector, the shift towards a recurring revenue model and the synergies realized with the companies acquired last year, increased operating profitability from 2% to 12%.
Similarly, in the Mobile segment, its continued success enabled revenue growth of 44% and especially improved operating profitability from 5.2% to 6.2%, while continuing to invest heavily in marketing during the period.
In addition, R&D investment and developments in the Internet of Things (IoT) are taking shape, with the roll-out of our IoT solutions to 250 customers in the past six months. Although this is not yet reflected in the Group’s figures, we’re recording new orders every day, proof that the launch of this huge market has effectively started. We’re convinced that we’re perfectly positioned to become a key player in IoT”, commented Pierre Cesarini, CEO of the Claranova group.
We will continue our excellent profitable growth trajectory, driven by accelerated performances in the Internet sector, combined with the launch of the personalized gifts market in the Mobile segment, with the integration of Personal Creation®, and the ramp-up of our IoT activities. With net cash flow from operating activities of €15 million, available cash in excess of €75 million and negative net debt, our financial position is also extremely healthy and solid. This positive momentum has encouraged us to raise our 4-year goals and we’re now aiming for revenue of €700 million and operating profitability in excess of 10%”.
The Claranova group records another year of strong growth to June 30, 2019, accompanied by a marked improvement in profitability. Group revenue is up over €100 million at €262.3 million (+62%, including organic growth of +33%), with a fourfold increase in EBITDA to €16.0 million, driven mainly by strong momentum in the Internet segment triggered by the successful integration of the businesses acquired at the beginning of the fiscal year. The operating profitability of the Group’s activities improved from 2.4% in the last fiscal year to 6.1%, while the Group continued to invest heavily in marketing to strengthen growth potential in the coming years. Group net cash flow from operating activities improved +€16.3 million to €14.8 million, compared to -€1.5 million in the previous fiscal year. After adjusting for non-recurring items not impacting the Company’s cash position, Adjusted net income is up +€7.1 million at €8.4 million.
