orege: annual results 2021 and outlook
Orege annual results 2021 Final
PRESS RELEASE
Voisins Le Bretonneux, 29 April 2022 – 18h00
ANNUAL RESULTS 2021 AND OUTLOOK
___________________________________________________________________
Summary financial information for the year ended 31 December 2021.
(Consolidated financial statements approved by the board of directors on 26 April 2022.
The statutory auditors are finalizing their audit procedures.)
| In k€ – IFRS | FY 2021 | FY 2020 | Variation |
| Turnover | 2 264 | 2 006 | +13% |
| Net operating expenses: | |||
| Payroll costs | -3 149 | -3 334 | |
| Operating expenses: | |||
| Manufacturing, sub-contracting | -1 073 | -980 | |
| Travel and subsistence expenses | -604 | -532 | |
| Rents and maintenance | -422 | -431 | |
| Other operating expenses | -957 | -1 334 | |
| Depreciation | -55 | -511 | |
| Amortization | -500 | -744 | |
| Total net operating expenses | – 6 760 | – 7 866 | -14% |
| Operating loss | -4 496 | -5 860 | -23% |
| Net financial loss | -108 | -1 563 | |
| Corporation tax | – | – | |
| Net loss | -4 604 | -7 423 | -38% |
Turnover
The turnover for the financial year 2021 amounts to 2 264 k€ compared to 2 006 k€ in 2020, an increase of 13%.
Net operating expenses
Total net operating expenses are down 14% from the previous year. This decrease reflects a combination of the actions taken during the Covid pandemic to manage Orege’s cost base, decreasing depreciation and amortization and favorable sterling and US dollar movements against the euro.
Financing and cash flow
At 31 December 2021, the Group Orege had 374 k€ of cash and cash equivalents (403 k€ at 31 December 2020).
Financial debt totaled 28 494 k€, including 26 631 k€ of shareholder current account advances (2020: 23 423 k€, including 20 909 k€ of shareholder current account advances). Since the year end a further 3 322 k€ of shareholder current account advance has been signed with Eren Industries which should enable the Group Orege to cover its estimated financing needs for 2022.
Outlook
Coming out of the pandemic
In the second half of 2021 and the first months of 2022, most pandemic-related constraints were lifted enabling almost normal travel in Europe and in the US. Orege hopes to be able to travel to Japan this summer. We anticipate that projects that were signed and frozen during the pandemic should be able to be resumed and completed in 2022 and the business development activity in these territories has been able to resume.
In the US, we are beginning to see the benefits of this with the delayed delivery and finalization of one project in Wisconsin anticipated this summer and with the recent signing of a second project in South Carolina. These two projects should generate just under 1 000k USD of sales in 2022.
In the UK, the 2 remaining solutions purchased by Scottish Water, via its framework contractor WGM, were delivered in Q1 2022 as anticipated generating some 600 k€ of sales. Orege has recently signed a contract for the sale of a solution to a new UK water company for some 300 k€.
Business development and project execution activity in other territories are progressing as expected.
Troubled supply chain and the conflict between Russia and Ukraine
The worldwide stress on supply chains has continued and has been exacerbated by the conflict between Russia and Ukraine. In 2021, Orege had launched the manufacture of a certain volume of solutions for signed (and subsequently frozen) projects and in anticipation of business ramp up and, consequently, has these solutions in stock ready to deliver. Orege has recently been able to secure further manufacturing of an additional number of solutions. The Group does not, therefore, anticipate significant constraints from the present supply chain troubles to its activities for 2022 but is remaining vigilant about 2023 and beyond. For example, its recent manufacturing prices for stainless steel have increased by as much as 50% and, consequently, the Group is presently revisiting its sales pricing strategy.
Orege will give an update on its activity to the market in June 2022.
Additional Information
The 2021 Annual financial report (in French) will be available on the company’s website (www.orege.com) from 16 May 2022.
Orege has been listed on the regulated market Euronext – Paris since 5 July 2013 ISIN
FR0010609206 – OREGE.
Contact Orege: Financial information – George Gonsalves
George.gonsalves@orege.com – mob: +33 6 08 03 50 72
Attachments
