- The company increases its revenue by +10% and ends the year with 143 million euros in sales.
- EBITDA reaches 43 million euros (30% of sales), growing by +25%
- Operating Profit is 7 million euros (5% of sales), with the net profit for the year being 40 million euros, once non-recurring impacts are included.
Madrid, February 26, 2020. – The Spanish multinational GAM (General de Alquiler de Maquinaria, BME: GALQ) presents its 2019 financial results, highlighting a growth in sales to 143 million euros (+10%), an improvement in EBITDA to 43 million euros (+25%), and an Operating Profit reaching 5% of sales (7 million euros).
The sales increase is driven by the business in Spain, which grows by 12% and accounts for 75% of the company’s revenue. Portugal grows by 11% and LATAM by 5%. This growth is achieved thanks to higher occupancy rates in the rental fleet and the strong boost from other business lines that do not require investment: Distribution, buy-sell, training, maintenance, etc.
The accumulated EBITDA grows by 25% to 43 million euros, representing 30% of sales. It is important to highlight the impact that the application of the new IFRS 16 Leases standard in 2019 had on these figures. Excluding this effect, EBITDA would have grown by 9% compared to the same period in 2018. (The company applies IFRS 16 from January 1, 2019, without restating prior periods). The Operating Profit of the Business reaches 7 million euros (5% of sales), almost quadrupling the Profit of the previous year (2 million euros).
| Information for comparative purposes only | |||||
| Income Statement (Million Euros) | 2019 | 2018 (1) | Variation 2019 VS 2018 | 2019 (without IFRS 16) | Variation 2019 (without IFRS 16) VS 2018 |
| SALES | 143 | 130 | 10 % | 143 | 10 % |
| EBITDA | 43 | 34 | 25 % | 38 | 9 % |
| 30 % | 27 % | +4pp | 26 % | - | |
| Depreciation | -29 | -23 | 27 % | -25 | 7 % |
| EBIT | 14 | 11 | 20 % | 13 | 15 % |
| 10 % | 9 % | +1pp | 9 % | - | |
| Extraordinary Items | -2 | -3 | -31 % | -2 | -31 % |
| Financial Result | -3 | -4 | -41 % | -2 | -55 % |
| Taxes | -2 | -2 | -27 % | -2 | -27 % |
| Minority Interests | 0 | 0 | -81 % | 0 | -81 % |
| Operating Profit of the Business | 7 | 2 | 315 % | 7 | 314 % |
| 5 % | 1 % | +4pp | 5 % | +4pp | |
| Non-recurring items and other effects | 33 | -6 | 33 | ||
| Net Result | 40 | -4 | 40 |
The company maintains a high cash generation, converting 81% of EBITDA into cash, generating 35 million euros, which is used for investments and debt servicing.
Thanks to the capital increase carried out in November 2019 (amounting to 30 million euros), and the profits of the fiscal year, the company strengthens its Equity, which goes from -17 million euros to +51 million euros.
| 2019 | 2018 | |
|---|---|---|
| Equity | 51 | -17 |
Net Financial Debt stands at 122 million euros, to which 23 million euros should be added for the application of IFRS.
The debt ratio improves from 5.5 in 2018 to 3.2.
| Financial Debt (Million Euros) | 2019 | 2018 | Variation |
|---|---|---|---|
| Net Financial Debt | 122 | 190 | -36% |
| Lease Debt (IFRS 16) | 23 | 0 | |
| Debt/EBITDA Ratio | 3.2 | 5.5 | -41% |
After the close of fiscal year 2019, GAM acquired the company CLEM. Founded in 1929, CLEM offers a wide range of products and services, including rental, sales, training, and maintenance of large machinery fleets, primarily for handling, lifting, and electric vehicles. It also has its own manufacturing unit for casket carriers and other specialized units that it provides on demand.
In recent years, CLEM has specialized in developing comprehensive engineering and logistics solutions mainly focused on the automotive and industrial sectors. In this field, through the design, manufacture, and commissioning of AGV (Automatic Guided Vehicles) projects, it has become a reference, earning significant contracts with companies like Ford and Thyssen.
In recent years, CLEM has specialized in developing comprehensive engineering and logistics solutions mainly focused on the automotive and industrial sectors. In this field, through the design, manufacture, and commissioning of AGV (Automatic Guided Vehicles) projects, it has become a reference, earning significant contracts with companies like Ford and Thyssen.
