ANOVO, the European leader in sustainable product lifecycle management for consumer electronics, announced revenue in line with Group expectations for the start of the fiscal year.
Strong growth from new offerings.
Revenue for the first quarter of FY 2010-2011 (October–December) was €86.9 million compared with €94.1 million one year earlier and €82.8 million in the last quarter of FY 2009-2010, representing sequential growth of 5%. On this basis, ANOVO's commercial performance in the first period of the fiscal year was slightly above budget.
Sales generated by complementary offerings (Logistics, Regeneration and Warranty Extension services) grew 91% in one year to account for 27% of the Group’s first quarter billings.
By region, Northern Europe (United Kingdom and Nordic Countries) was the most affected by difficult market conditions for the core Repair services business accompanied by an unfavourable comparison base from a major contract in the United Kingdom that ended in March 2010. France and South America experienced a marginal decline in sales while in Italy ANOVO showed good resilience. Finally, in Spain the Group benefited from contributions from the businesses of Euroterminal that was consolidated since September 2010.
Operational optimisation and strengthening commercial teams.
Continuing the trend of the second half of the last fiscal year, ANOVO's margins remained under pressure in the FY 2010-2011 first quarter. With broader market pressures on prices still weighing heavily on the Repair business, the measures adopted to optimise operations are consequently justified.
Within the framework of the global Optima program, major capital expenditures were undertaken at the start of the period to achieve lasting improvements in productivity and cost savings by rationalising sourcing at the Group level. These measures will gradually produce results starting in the second half.
At the same time, to gear up for the new strategic drive launched in the fall, ANOVO is in the process of significantly strengthening its commercial teams to provide renewed momentum to core businesses while accelerating the development of new offerings.
Net financial debt under control
At 31 December 2010 gearing (net financial debt to equity) remained under control at a level slightly lower than one year earlier.
Outlook for a period of transition
ANOVO expects FY 2010-2011 to be a period of transition particularly in terms of profitability. Margins in the first half should accordingly mark a temporary low before the positive effects of investments undertaken gradually produce benefits in the six month periods to follow.
Upcoming events: Publication of FY first-half results, 25 May 2011, after the close of trading.
A European leader, for more than 20 years ANOVO (anovo.com) has provided solutions for sustainable product lifecycle management for consumer electronics. With local manufacturing bases in 11 countries to provide customers with optimal service on site, the Group offers companies and individuals solutions (Repairs, Logistics, Regeneration, Warranty Extension Services) for extending product life cycles, increasing their value and reducing their environmental footprint. Every year ANOVO offers a second life to more than 20 million tech products (smartphones, laptops, triple play set-top boxes, GPS devices, e-readers, touch screen tablets, etc). In FY2009/2010, the Group had revenue of €344 million.
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ANOVO Willem Wynaendts Executive Board Member – Finance & Support T: +33 (0)1 58 17 00 70 - E: wwynaendts[.]anovo.com
ACTUS FINANCE Jérôme Fabreguettes-Leib Investor /Shareholder Relations T: +33 (0)1 77 35 04 36 - E: jfl[.]actus.fr
Anne-Catherine Bonjour Media Relations T: +33 (0)1 53 67 36 93 E: acbonjour[.]actus.fr.