The Spanish multinational GAM (BME: GALQ), a company specialized in comprehensive machinery solutions for industry, has reported the results for the first half of this year, a period still affected by the slowdown in economic activity caused by COVID-19.
During the first six months of the year, revenue increased by 31% to 77.4 million euros, which not only represents a recovery to pre-pandemic activity levels but also an 8% increase in revenue compared to the same period in 2019. Long-term business grew by 29% and now represents 18% of the company's total revenue. The so-called Capex-free businesses (those that do not require additional structure and capital, such as distribution, buying and selling, maintenance, training, etc.) doubled their revenue and account for 39% of total income.
The EBITDA margin reached 18.1 million euros (23% of sales) and grew by 17% compared to 2020, a proportionally lower increase than sales due to the growth of Capex-free businesses, which have lower margins than rental.
After a first quarter of the year more affected by the crisis, the second quarter has been much more positive. Thus, between April and June, GAM generated 40.9 million euros in sales, with an EBITDA[1] of 10.9 million (27% of sales) and a net profit for the period of 1.1 million, partially offsetting the losses from the first quarter of the year. It is expected that in the coming months the company will report accumulated profits.
GAM maintains a high liquidity position (53.8 million euros, including cash and available credit lines) which will allow it to continue taking advantage of growth opportunities, such as the recent acquisition of Recambios, Carretillas y Maquinaria, S.L. (Recamasa), Alquitoro 3000, S.L. (Alquitoro), and Sociedad de Intermediación de Maquinaria Madrid, S.L. (“SIM”), all completed during this month of July.
Debt remains at similar levels to the previous year (127.2 million euros of net financial debt*) and the company is diversifying its sources of financing, having incorporated into the Alternative Fixed Income Market a promissory note program for 50 million euros -of which a first issuance was made on May 3, 2021, for 12.1 million euros- as well as a bond program for 80 million euros -with a first issuance on July 5, 2021, for 30 million with maturity in 2026- which have been entirely used to partially repay syndicated debt. Considering this subsequent fact, the new debt amortization schedule is as follows:
About GAM
GAM is a publicly traded Spanish multinational (BME: GALQ), founded in 2003 in Asturias, specializing in comprehensive solutions and services for industry related to machinery, including rental, sales, maintenance, training, events, energy supply, modular spaces, and robotics and drone engineering, among others.
It operates in 10 countries and has 75 branches. As of July 2021, the company employs approximately 1,100 people.
