Financial year 2006:Revenue growth of 12.7%

23/01/07 - Buoyancy confirmed

 

Acceleration of internal growth in the fourth quarter: + 8.8%

 

Audika Group posted a strong end to the year with revenue of EUR 25.9 million in the fourth quarter of 2006, up 12.7% on the same period in 2005. Internal growth came out at 8.8% for the quarter, up significantly on the first nine months of 2006.

 

In EUR millions under IFRS	2005	2006	Change
At nine months	47.6	53.6	+12.6%
Q4	23.0	25.9	+12.7%
Total revenue	70.6	79.5	+12.7%

 

Revenue for 2006 in line with expectations, profit target confirmed

 

The performance posted in the fourth quarter brings annual revenue for 2006 to EUR 79.5 million, up 12.7% on 2005. Excluding the contribution of acquisitions made in 2006, which amounted to EUR 1 million, growth came out at 11.2%. This puts growth within the expected 10% to 15% range which was the target at the beginning of the year.

 

Annual internal growth came out at 8.0%, up significantly on the 4.3% posted in 2005. By rediscovering its historical level of internal growth, Audika has demonstrated its ability to outperform the market year after year and is once again close to its usual growth rate.

Audika has confirmed its full-year 2006 operating margin target of at least 15.7%.

 

 

Outlook: high ambitions for broadening the network, already ten new centers in 2007

 

In a high-growth market, Audika will use its marketing expertise and customer awareness of the brand to continue to gain market share. Moreover, the Group will continue to benefit from the full-year effect of the 20 centers acquired over 2006 (ten of which are franchises), which will bring in EUR 1.5 million additional revenue in 2007.

 

Audika Group will continue its dynamic strategy for broadening its network by completing six new acquisitions: one in Nîmes in the Gard, two in Nord, one in the Paris region and two in Hérault. These new centers will generate EUR 1.5 million in additional revenue in 2007. The Group has also created four new centers in Savoie, Hérault, Nord and Maine-et-Loire.

 

Bolstered by these elements, the Group has set an initial revenue target of at least EUR 89 million in 2007, excluding the impact of new acquisitions.

 

The Group's ambition is to speed up the broadening of its network coverage in 2007. Negotiations are already well underway with many targets, confirming that Audika is taking an ever stronger strategic position in order to rapidly reach its target of 500 centers in France.

 

Audika will thus be the first to benefit from the forecast growth in its market in the years ahead as its target category, the “baby boom” generation, reaches the age of 65.

 

Audika Group will publish its 2006 annual results on the evening of March 19, 2007.

 

 

About Audika:

 

With nearly 330 centers in 77 different regions 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 environment, Audika aims to consolidate its leadership in a sector that remains very highly fragmented. Audika is listed on the Eurolist SMALL 90, segment B.

 

IISIN FR0000063752-ADI

Reuters DIKA.PA,

Bloomberg ADI

Number of shares: 9,450,000

 

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

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



KAPARCA FINANCE - 23/01/07