Cogelec : HALF-YEARLY FINANCIAL REPORT 2024

Published: 2024-09-25 12:09:15 ET ALLEC.PA

September 25, 2024

HALF-YEARLY FINANCIAL REPORT

COGELEC GROUP

30 JUNE 2024

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

CONTENTS

1. GROUP CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2024

1.1 CONSOLIDATED BALANCE SHEET

1.2 CONSOLIDATED INCOME STATEMENT

1.3 COMPREHENSIVE INCOME

1.4 CONSOLIDATED CASH FLOW STATEMENT

1.5 STATEMENT OF CHANGES IN EQUITY

1.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. STATUTORY AUDITORS' REPORTS

2.1 STATUTORY AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

ABOUT COGELEC

COGELEC is the French leader in controlled access for multi-family housing. In 2007, COGELEC created the first global wireless intercom subscription-based service under the Intratone brand.

Based on an indirect distribution model combined with very close relationships with social housing providers and managing agents for co-owned buildings, COGELEC is now present in six countries in Europe and the Intratone brand has more than 2 million subscriber homes.

COGELEC is listed on Euronext Growth Paris and is included in the Growth AllShare, Tech Croissance and PEA-PME 150 indexes.

COGELEC is still in a phase of international growth. After creating its subsidiary INTRATONE GMBH in Germany at the end of 2017, the company set up a subsidiary INTRATONE UK in England at the end of the 1st half of 2018 and another subsidiary INTRATONE BV at the end of 2018. These companies were set up to facilitate the international marketing of INTRATONE products. The subsidiaries' sales activity continues to grow, with international sales up 28% in the first half of 2024.

COGELEC generated revenue of €36.7m at the end of June 2024.

MANAGER'S STATEMENT

"I hereby certify that, to the best of my knowledge, the summary consolidated financial statements for the past half-year have

been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, financial position

and earnings of all the companies included in the consolidation, and that the half-yearly activity report presents a true and fair

picture of the significant events that occurred during the first six months of the financial year, their impact on the half-yearly

financial statements, the main related party transactions, and describes the main risks and uncertainties for the remaining six

months of the financial year."

24 September 2024

Roger Leclerc

Chairman and CEO

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

1. CONSOLIDATED FINANCIAL STATEMENTS SUMMARISED IN ACCORDANCE WITH IFRS AS AT 30

JUNE 2024

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

1.1 CONSOLIDATED BALANCE SHEET

1.1.1 ASSETS

ASSET

Ratings

30/06/2024

31/12/2023

Intangible assets

1.6.5.1

8 097

7 177

Fixed assets

1.6.5.2

13 486

13 374

Investments in associates

370

400

Other financial assets

1.6.5.3

557

506

Other non-current assets

1.6.5.4

7 639

7 119

Non-current tax assets

1.6.6.9

Total non-current assets

30 148

28 576

Inventories and work in progress

1.6.5.5

17 061

16 028

Customer receivable and accounts

1.6.5.6

17 227

16 445

Other current assets

1.6.5.7

3 589

4 035

Current tax assets

1 336

Cash and cash equivalents

1.6.5.8

26 481

22 489

Total current assets

64 358

60 333

TOTAL ASSETS

94 506

88 909

1.1.2 LIABILITIES

PASSIVE

Ratings

30/06/2024

31/12/2023

Share capital

1.5 and

4 004

1.6.5.9

Issuance premiums

1.5

4 799

Other comprehensive income

1.5

-188

-112

Consolidated reserves group share

1.5

-2 258

-3 243

Consolidated result group share

1.5

2 814

4 505

Equity group share

1.5

9 172

9 953

Consolidated reserves minority interests

1.5

-2 103

-2 050

Consolidated result minority share

1.5

Equity capital share of minority interests

1.5

-2 064

-2 044

Total owner's equity

7 108

7 909

Borrowing and financial debts

1.6.5.10

14 707

17 402

Provisions for retirement commitments

1.6.5.11

506

408

Other long-term provisions

1.6.5.11

1 611

1 673

Other non-current liabilities

1.6.5.12

37 615

34 712

Non-current tax liabilities

1.6.6.9

366

615

Total non-current liabilities

54 806

54 810

Borrowings and financial debts

1.6.5.10

10 197

7 030

Trade payables and related accounts

1.6.5.12

6 678

6 136

Other current liabilities

1.6.5.12

14 984

12 921

Current tax liabilities

734

103

Total current liabilities

32 593

26 190

TOTAL LIABILITIES

94 506

88 909

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

1.2 CONSOLIDATED INCOME STATEMENT

Ratings

30/06/2024

30/06/2023

TURNOVER

1.6.6.1

36 678

32 627

Other products of the activity

Consumes purchases

1.6.6.3

-13 179

-11 690

Staff costs

1.6.6.4

-12 040

-11 065

External charges

1.6.6.5

-5 951

-5 436

Dues and taxes

-510

-473

Additions / Depreciation reversals

1.6.5.1 and 1.6.5.2

-2 293

-2 344

Additions / Reversals of provisions and depreciation

-142

-667

Change in inventories of products in progress and finished products

1.6.5.5 and 1.6.6.2

823

427

Other current operating income and expenses

1.6.6.6

136

305

CURRENT OPERATING INCOME

3 529

1 694

Other operating income and expenses

1.6.6.7

-56

-131

OPERATING INCOME

3 473

1 563

Income from cash and cash equivalents

368

236

Cost of gross financial debt

-190

-174

Cost of net financial debt

1.6.6.8

178

Other financial income and expenses

1.6.6.8

269

281

Tax charges

-1 037

-1 287

Share of profit of other companies accounted for using the equity

-30

CONSOLIDATED NET INCOME

2 853

619

Group share

2 814

619

Minority share

BASIC NET EARNINGS PER SHARE

1.6.6.10

0,3393

0,0728

DILUTED NET EARNINGS PER SHARE

1.6.6.10

0,3230

0,0728

1.3 COMPREHENSIVE INCOME

30/06/2024

30/06/2023

RESULT OF THE PERIOD

2 853

619

Items recyclable in the income statement

Conversion differences

-244

-299

Taxes on items recognized directly in equity

Items not recyclable in the income statement

Taxes on items recognized directly in equity

-3

-9

Actuarial differences

Incomes and expenses recognized directly in equity

OTHER COMPREHENSIVE INCOME FOR THE PERIOD

-246

-273

OVERALL RESULT FOR THE PERIOD

2 607

346

Group share

2 626

346

Minority share

-19

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

1.4 CONSOLIDATED CASH FLOW STATEMENT

Ratings

30/06/2024

30/06/2023

CASH FLOW RELATED TO ACTIVITY

Net income form continuing operations

1.5

2 853

619

Income from companies accounted for by the equity method

Net depreciations and provisions

1.6.5.1-1.6.5.2-1.6.5.11

2 296

2 938

Grant takeovers

1.6.6.6

-158

-311

Share of prepaid income included in income

1.6.5.12

-2 305

-1 980

Gains and losses on disposals

1.6.6.7

118

Exchange difference on reciprocities

-226

-295

Other non-cash items (share-based payment)

218

Cash flow after cost of net financial debt and tax

2 749

1 088

Cost of net financial debt

1.6.6.8

-178

-62

Tax expense (including deferred taxes)

969

1 221

Cash flow before cost of net financial debt and tax

3 540

2 247

Taxes paid

739

-2 357

Change in working capital requirement related to the activity :

- Other non-current assets

-510

-340

- Inventory

-1 032

-826

- Customers

-764

877

- Other current assets (excluding loans and guarantees)

416

625

- Other non-current liabilities

2 861

2 193

- Suppliers

575

1 341

- Other current liabilities

4 515

2 404

Total

6 060

6 274

Net cash flow generated by the activity

10 339

6 165

CASH FLOW FROM INVESTING OPERATIONS

Acquisitions of fixed assets (1)

-2 499

-2 028

Disposals of fixed assets

1.6.6.7

Change in loans and advances granted

-16

-18

Net cash flow from investing activities

-2 515

-2 041

CASH FLOW FROM FINANCING OPERATIONS

Dividends paid to shareholders of the parent company

1.5

Capital increase in cash

1.5

Own shares

1.5

-465

-627

Loan issues (1)

1.6.5.10

Loan repayments

1.6.5.10

-3 557

-2 570

Cost of net financial debt

1.6.6.8

178

Net cash flow from financing activities

-3 844

-3 136

CHANGE IN CASH

3 979

988

Opening cash

1.6.5.8

22 488

23 438

Closing cash

1.6.5.8

26 480

24 448

Change in translation differences

-13

-22

Change in cash

3 979

988

(1) Excluding new leases and operating leases for 897 K€ at 06/30/2024 and 661 K€ at 06/30/2023

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

1.5 STATEMENT OF CHANGES IN EQUITY

capital

Premiums

Others

elements

result

overall

Reservations

Result of exercise

Total

capital clean

Minority interests

Capital

clean band

To December 31, 2023

4 004

18 551

541

-15 735

-292

7 069

Movements :

Allocation result N-1

-11 315

-541

11 564

292

Dividends paid to parent

-2 464

company shareholders

Own shares

-687

Actuarial differences

Exchange difference

-299

Consolidated result

619

To June 30, 2023

4 004

4 772

-273

-4 858

619

4 264

capital

Premiums

Others

elements

result

overall

Reservations

Result of exercise

Total

capital clean

Minority interests

Capital

clean band

To December 31, 2023

4 004

4 799

-156

-5 249

4 511

7 909

-2 044

9 953

Movements :

Allocation result N-1

156

4 355

-4 511

Dividends paid to parent

-3 151

company shareholders

Own shares

-475

Actuarial differences

-2

Exchange difference

-244

-59

-185

Share-based payment

218

Consolidated result

2 853

2 814

To June 30, 2024

4 004

4 799

-246

-4 301

2 853

7 108

-2 064

9 172

1.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise stated, amounts stated in these notes are in thousands of euros)

1.6.1. OVERVIEW OF GROUP AND MAJOR EVENTS

1.6.1.1 Information relating to the Company and its business activities

COGELEC is a Société Anonyme (SA - French public limited company). The financial statements prepared in accordance with IFRS include the parent company COGELEC and its subsidiaries.

The period covers six months from 1 January to 30 June.

Address of the registered office: 370 rue Maunit, Mortagne-sur-Sèvre (85290), France.

Trade and Companies Register number: 433 034 782.

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

COGELEC is a French manufacturer of telephone intercoms and access control solutions.

COGELEC and its subsidiaries are hereinafter referred to as the "Company" or the "Group".

As part of its export development, on December 4, 2017, COGELEC subscribed to 100% of the capital of INTRATONE Gmbh. Headquartered in Düsseldorf, the company was registered on December 28, 2017. On February 12, 2018, COGELEC subscribed to the capital of INTRATONE UK Limited, whose registered office is in London. On October 29, 2018, COGELEC subscribed to the capital of Amsterdam-based INTRATONE BV. In their parent company financial statements, the subsidiaries generated losses of €0.14m in the first half of 2024 [after taking into account a €2.1m contribution from Cogelec SA to their distribution costs], compared with €3.3m in the first half of 2023 .

On December 22, 2023, COGELEC acquired a 35% stake for 400 k€ in PORTACONNECT, a company developing a connected solution for remote monitoring of automatic doors and gates. PORTACONNECT is managed by a third party outside the Group, and COGELEC is not involved in the company's decision-making process. COGELEC has exclusive marketing rights for this solution, and benefits from a new diversification in its product range.

PORTACONNECT is accounted for by the equity method in the Group consolidation.

1.6.1.2 Key events in H1 2023

Continued business growth in France and Europe

Turnover En M€

2024

2023

Variation

1st quater

18,5

17,2

7,7%

2nd quater

18,2

15,4

17,7%

Total 1st half

36,7

32,6

12,4%

COGELEC reports consolidated sales for the 1st half of 2024 of €36.7 million, up +12.4% on the 1st half of 2023. After a first-quarter increase of +7.7%, growth accelerated to +17.7% in the second quarter, driven by a stronger sales momentum both in France and internationally.

Sales of all the Group's brands were particularly buoyant in France over the period. The Intratone brand, marketed in France and Europe, continued to benefit from its unique positioning in GSM intercom systems, and also gained market share over the period.

With a steadily growing installed base, subscriptions increased by +16.3% in Q2 2024 (€5.8m vs. €5m) and totaled €11.4m (€9.8m in 2023) for the half-year as a whole. Subscription-related revenues represented 31.1% of total Group sales at June 30, 2024.

In France, sales rose by +16% in Q2 2024 to €15.8 million. For the half-year as a whole, sales volume came to €31.4 million, up +10.2%.

In Europe, sales are recovering, driven by good performances in the United Kingdom and renewed activity in other subsidiaries. International sales in Q2 2024 amounted to €2.7 million, up +35.4%, and totaled €5.3 million for the half-year, up +28%.

EBITDA up and a return to break-even

Against an inflationary backdrop, gross margin rose to €24.3 million (66.3% of sales), underlining the Group's ability to control all its supply costs.

The Group had 345 employees at June 30, 2024. The +8.8% increase in personnel costs is due to various remuneration elements in line with the Group's growth.

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

September 25, 2024

External expenses rose by 9.5%, and included in particular the cost of setting up a new ERP, mainly including detailed process analysis, user licenses and key-user training.

EBITDA thus came to €6.1 million, up +33.7%.

Operating income recurring came to €3.5 million, up +122%, thanks to stable depreciation and amortization charges and the absence of exceptional write-downs on R&D projects as opposed to 2023. After taking into account a favorable financial result and the tax charge, net income was positive at €2.9 million.

At June 30, 2024, shareholders' equity stood at 7.1 M€. Financial debt stood at 24.9 M€, including dividends of 3.1 M€ paid to shareholders in July 2024. At the end of the 1st half of 2024, the Group had gross cash of 26.5 M€. At the end of this half-year period, the Group's debt-to-equity ratio was down.

Implementation of a free share plan

Making use of the authorization granted by the 9th resolution of the Company's Annual General Meeting of June 22, 2023, the Board of Directors decided at its meeting on March 26, 2024 to renew under the same terms the share buyback program implemented on November 16, 2022 to cover future bonus share plans, for a period of 18 months from the date of the said Annual General Meeting, i.e. until December 22, 2024.

At its meeting on March 26, 2024, the Board of Directors also made use of the authorization granted by the 16th resolution of the Company's Annual General Meeting of June 22, 2023 to set up several free share allocation plans for the benefit of certain employees of the Company and, more generally, of the Group, including:

All these plans are subject to a 40-month vesting period (with no holding period) and to presence and performance conditions, with the aim of growing the Company and creating value for its shareholders.

The purpose of these plans is to strengthen the existing links between the Company and the Group's employees concerned, by giving them the opportunity to be more closely involved in the future development and performance of the Company and, more generally, of the Group.

For the Company, these plans represent a reduced cost in terms of incentive instruments, and for shareholders, a controlled dilutive effect.

The shares issued at the end of the vesting period may be new ordinary shares or existing shares acquired under the Company's share buyback program, as described in section 1.4.3 of the Management Report.

In accordance with IFRS 2, employee compensation settled in equity instruments is recognized under "Employee benefits expense" in the income statement, with a corresponding entry to shareholders' equity.

The total expense is measured at the grant date, taking into account all specific conditions likely to have an impact on fair value, and spread on a straight-line basis over the vesting period.

Taking into account employee departures since the start of the plan, the final number of shares allocated would be 420,000. For this purpose, it was assumed that 100% of employees still working on June 30, 2024 would be present on the vesting date. Based on these assumptions, the cost of this plan amounts to €284,000, including the employer's contribution.

HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2024

Disclaimer

Cogelec SA published this content on September 25, 2024 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on September 25, 2024 at 16:08:03 UTC.