2007 annual results surpass targets

26/03/08 - Recurring operating margin of 19.5%

 

In 2007, Audika Group revenues increased by 17.2% to reach EUR 92.7 million. Annual organic growth of 10% constitutes a major improvement over the 7.3% posted in 2006, and confirms the Group’s capacity to grow more quickly than its market.

 

(in thousands of euros)	2006	2007	Change
Revenues	79,042	92,674	+17.2%
Recurring operating income	12,854	18,107	+40.9%
Recurring operating margin	16.3%	19.5%
Operating income	12,854	18,107	+40.9%
Group net income	7,876	11,085	+40.7%
Net margin	10.0%	12.0%

 

Recurring operating margin of 19.5% in 2007: a new record

 

This growth was accompanied by a sharp 40.9% increase in recurring operating income, which comes out at EUR 18.1 million. Recurring operating margin thus reached 19.5% of revenues, a new record for the Group.

 

Audika is enjoying the results of its rapid expansion, as shown by further increase of its gross margin due to a positive size effect and a well-managed cost structure. This performance is especially satisfactory given that it includes both a sustained marketing effort (accounting for 6% of revenues) and start-up costs related to the Group's expansion in Italy. The Group can once more highlight the soundness of its economic model and its potential for value creation.

 

Net income soared 40.7% to EUR 11.1 million, for a net margin of 12%.

 

 

Stable gearing at 36.6%

 

An increasingly strong performance and good management of working capital allowed the Group to internally finance its expansion in 2007. 35 new centers were opened in France, and 6 in Italy. Against this backdrop of strong growth, Audika was able to keep its gearing stable at 36.6% at end 2007. Audika therefore still has significant financial resources with which to pursue its expansion in excellent conditions.

 

 

Dividends up 95%

 

A proposal to pay a dividend of EUR 0.41 per share (up 95% over 2006) will be put forward at the next Shareholders’ Meeting.

 

 

Future prospects: continued strong growth

 

With its position in a buoyant, high-visibility market both in France and Italy, Audika intends to pursue rapid expansion in both countries by combining faster organic growth at the Group than in the market and an active acquisitions policy.

 

In France, marketing efforts are still yielding good results, with a positive business trend since the beginning of the year. In fact, since January 1 the Group has already added 7 new centers (2 acquisitions and 5 openings) to its existing network, bringing the total number of centers to approximately 360. There are still many opportunities for growth and negotiations are underway regarding several possible acquisitions.

 

In Italy, the Audika network now boasts 15 centers, after 6 acquisitions and 3 openings at the beginning of the year. At this pace, Audika is well on its way to meeting its 3-year goal of adding 50 new centers to its network. Alongside its network development, Audika is also committed to progressively strengthening its management and the implementation of all synergies (purchasing, marketing, product offer and services) in 2008.

 

In 2008, Audika aims for EUR 108 million in revenues, forthcoming acquisitions aside. The Group also targets recurring operating margin of at least 19.5%.

 

Audika Group will publish its revenues for the first quarter of 2008 on April 14, 2008.

 

 

About Audika:

 

With 360 centers in 80 different regions and a 14% 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 Euronext Paris, compartment B, CAC Small 90.

 

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

 

ISIN FR0000063752-ADI Reuters DIKA.PA Bloomberg ADI:FP

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 - 27/03/08