Sharp pick-up in growth in Q4 2005: +19.6%

24/01/06

 

Fourth quarter internal growth of 13.9%

 

As expected, Audika once again enjoyed sustained growth over the final quarter of 2005, with sales for the period coming in at EUR 23.0 million and affording the Group an overall growth rate of 19.6% for an internal growth rate of 13.9%. This performance takes Audika’s annual growth rate to 9.0% (for an internal growth rate of 4.3%) which is in line with the top end of the latest target range set by the company.

 

Indeed, despite the difficult weather conditions in February and disruptions linked to France’s Social Security requiring patients to register their attending physician as of the second half of the year, the final quarter of 2005 saw Audika reap the benefits of an aggressive marketing strategy over the year as a whole which was further bolstered by the successful launch of a new financing offer (payment in 10 installments, interest free).

 

In EUR millions and under IFRS	2004	2005	Change
Sales over nine months	45.5	47.6	+4.6%
Q4 sales	19.2	23.0	+19.6%
Total sales	64.7	70.6	+9.0%

 

More than 300 centers in France at the end of 2005

 

Alongside its internal development, Audika Group further reinforced its geographical scope in 2005, cementing its nationwide leadership position. With 17 acquisitions and 9 new centers opened in 2005, the Group now boasts 305 centers in 75 regional departments.

 

 

Outlook for 2006: Ongoing growth

 

In a market that continues to offer excellent medium-term growth potential, particularly as the “oldies boom” expected in the years ahead will mean a rapid and significant rise in the number of persons aged over 50, Audika Group intends to actively pursue its growth and development in 2006.

 

In fact, the company will be drawing upon its new marketing campaign featuring French celebrity Robert Hossein to consolidate its leadership and recognition and to be the first to benefit from the market’s growth trend. This campaign will also be underpinned by the full-year impact of the new and exclusive service offered by the Group (payment in 10 installments, interest free) to make its products even more accessible. Lastly, Audika will benefit from the strong development of the acquisitions made and new centers set up in 2005.

 

Bolstered by these factors, Audika is targeting growth of between 10 and 15% in 2006 excluding acquisitions.
Moreover, the Group enjoys a very high degree of visibility as regards potential acquisitions and new centers and will be pursuing its dynamic strategy in this respect throughout 2006 in order to meet its medium-term goal of 500 centers in France.

 

Audika Group will publish its yearly results for 2005 on March 28, 2006.

 

 

About Audika

 

With more than 300 centers in 75 different regional departments and a 13% market share, Audika is the number one network offering hearing correction consulting and solutions in France. Positioned on the market for hearing correction solutions for senior citizens, which is not affected by changes in the economic situation, Audika aims to consolidate its leadership in a sector that remains very highly fragmented. Audika is listed on segment B of the Eurolist SMALL 90 index.

 

If you would like to receive financial information on Audika by e-mail, register at www.audika.com

 

ISIN FR0000063752-ADI

Reuters DIKA.PA

Bloomberg ADI

Number of shares:

9.450.000



Audika contact: Alain Tonnard / Etienne Sirand-Pugnet on +33 (0)1 55 37 30 30

Kaparca Finance contact: Guillaume Le Floch on +33 (0)1 72 74 82 25



KAPARCA FINANCE - 24/01/06