FY 2021: Delta Drone continues its development while having many
high-value assets strengthening its financial situation
FY
2021: Delta
Drone continues its
developmentwhile having many
high-value assetsstrengthening
its financial situation
March 31, 2022 at 8amKey
points
- Change
of accounting framework with the transition to IFRS
- Revenue
up +18.2% and strong improvement in net
income
- The
sale of the Israeli subsidiary ParaZero
brings A$ 6 million in
cash to Delta Drone International which becomes autonomous to
finance its development in the southern hemisphere
- The
agreement with Volatus Aerospace
is still being finalized, it will allow the Group to change its
dimension
- Launch
of a cost reduction plan to aim for operating balance in 2023,
financed by a €1 million draw from
Ornan
-
Consolidation of short-term equities to foster new stock
market momentum
In K€ |
FY 2019 |
|
FY 2020 |
FY 2020 |
FY 2021 |
French Gaap |
IFRS |
IFRS |
Turnover |
15 987 |
13 417 |
13 417 |
15 865 |
Other products of the activity |
1 561 |
3 865 |
3 865 |
1,278 |
Purchases and inventory changes |
8 051 |
8 305 |
8 305 |
7 182 |
Personnel costs |
13 985 |
12 726 |
12 726 |
15 718 |
Taxes |
397 |
423 |
423 |
374 |
Other income/expenses from current operations |
29 |
126 |
126 |
- |
EBITDA |
(4 914) |
(4 298) |
(4 298) |
(6 131) |
Net depreciation allowances |
3,665 |
3 398 |
1 618 |
2 065 |
Net provisions and impairments |
- |
(139) |
(139) |
294 |
CURRENT OPERATIONAL RESULT |
(8,579) |
(7 558) |
(5 778) |
(8,491) |
Other operating income and expenses |
(1 356) |
(2 093) |
(2 842) |
(1 023) |
OPERATIONAL RESULT |
(9 935) |
(9 651) |
(8 619) |
(9 514) |
Cost of net financial debt |
- |
- |
(147) |
(184) |
Other financial income and expenses |
513 |
(582) |
163 |
5 334 |
RESULT BEFORE TAX |
(9 422) |
(10 233) |
(8 604) |
(4 371) |
Tax expense |
(194) |
(121) |
(122) |
(24) |
QP result of associates |
(464) |
(507) |
(507) |
(28) |
NET RESULT OF INTEGRATED COMPANIES |
(10 080) |
(10 862) |
(9 233) |
(4 423) |
Result of divested companies |
- |
- |
- |
(919) |
RN – share attributable to non-controlling interests |
(541) |
(165) |
723 |
(995) |
NET INCOME GROUP SHARE |
(9 539) |
(10 697) |
(9 856) |
(4 347) |
EQUITY & ASSIMILATION |
6 012 |
10 356 |
13 757 |
22 349 |
CASH AND EQUIVALENT |
1 817 |
4 732 |
4 732 |
1 343 |
After a year 2020 strongly impacted by the
effects of the health crisis, the Group managed to return to a
level of activity comparable to that of 2019, even if the crisis
persists and continues to disrupt the activity.
In terms of the formation of operating income,
its apparent stability actually reflects significant major
developments. The increase in personnel costs is directly linked to
the winning of several private security contracts, which will be
the breeding ground for our strategy to dronify the sector.
Conversely, there was a decrease in purchases and changes in
inventories as well as depreciation allowances. Finally, the
decline in other revenues of the activity, including in particular
the fixed production of the period, illustrates the end of the
R&D program dedicated to the development of the professional
solutions ISS Spotter (security) and Countbot (inventory), now
operational and in the commercial start-up phase.
The beginning of 2022 was marked by the winning
of several contracts in the field of events, signed by ATM Group
Sécurité (subsidiary of Delta Drone Human Tech), which consist of a
mixed offer combining security agents and ISS Spotter system, which
fully validates the relevance of the strategy.
At the same time, in partnership with Geodis,
the first Countbot missions were carried out to the satisfaction of
the first customers, who see the system as a major innovation, a
source of better management of their inventories under favorable
economic conditions.
Considering the Australian subsidiary Delta
Drone International, the cash sale for $ A6 million (about € 4
million) of the Israeli company ParaZero completes the process of
setting up a pole focused on the southern hemisphere and the mining
sector. Delta Drone International is now firmly established in two
major mining countries, South Africa and Australia, and has the
necessary resources to self-finance its development.
The adoption of IFRS standards allows Groupe to
recognise the "fair value" of its shareholdings, housed within the
UDT subsidiary. This investment policy aimed at creating an
ecosystem within the Group, generating numerous industrial
synergies, is crowned with success since the portfolio brings
overall a revenue of more than €5 million into the income
statement.
Finally, the loss for the year was reduced to
€4.3 million, halved compared to the previous year's loss.
Please note that the Group's detailed accounts
are available in French and English on the Group's website
(www.deltadrone.com).
The final terms of the agreement with the Canadian
group Volatus Aerospace are still
under discussion
By means of a press release dated March 3, 2022,
the Delta Drone and Volatus Aerospace groups had announced the
signing of an agreement, subject to several conditions precedent,
whose purpose was to constitute together a world leader in the
sector, present on all continents.
As stated in the statement, the agreement
required the approval of the French Ministry of the Economy, as
part of the 2019 law on investments by foreign companies in French
companies. The investigation of the file is still ongoing, without
the date of the Ministry's response being precisely known.In
addition, the agreement also requires the approval of minority
shareholders of Australian subsidiary Delta Drone International, as
the company is listed on the Sydney ASX Stock Exchange. This
approval will be submitted to shareholders at a General Meeting to
be held in May.
However, while waiting for the Delta Drone and
Volatus Aerospace teams have started working on joint projects:
- for North America, the commercial
development of the solutions proposed by Delta Drone,
- for Delta Drone's locations, the
products and systems marketed by Volatus Aeropace.
A €2 million operating expense reduction plan is
launched immediately, financed by a
€1 million tranche of
Ornan
Given the evolution of the Delta Drone Group and
its ambitions for the coming years, the need to continue efforts to
rationalize operating expenses remains crucial. Thus, to achieve
the objective of reaching the operating balance next year, Delta
Drone decides to launch at the beginning of the 2nd quarter a plan
to reduce operating expenses, which represents a potential saving
in full year of around € 2 million.
In accordance with the authority granted to the
Board of Directors by the Extraordinary General Shareholders’
meeting of Delta Drone (the “Company”) dated 24
April 2020 pursuant to its sixth resolution, the Board of Directors
dated 14th October 2020:
-
approved the principle of issuing 2 500 tranche warrants (the
“Tranche Warrants”), giving
access to 2 500 bonds redeemable in cash and/or new shares (the
“ORNAN”) with share subscription warrants attached
(the “Warrants”) upon exercise, to the investment
fund YA II PN, LTD (the “Investor”), a fund
managed by the US management company Yorkville Advisors,
representing a financing of up to €25M of aggregate nominal value;
and
- empowered
the Chairman and CEO to decide to launch this transaction, to
approve its final terms and conditions, to issue the Tranche
Warrants and to drawdown the tranches of ORNAN with Warrants
attached.
Pursuant to the sub-delegation of authority
granted to him by the Board of Directors on 28 April 2020, the CEO
decided today to drawdown 1 tranche of ORNAN with Warrants
attached.
The main characteristics of the Tranche
Warrants, ORNAN and Warrants (the terms and conditions of which are
available in detail on the Company’s website (www.deltadrone.com)
under the « Investors » tab) have been presented in a
press release dated 14 October 2020.
In accordance with the financing agreement
entered into on 14 October 2020 with the Investor, 1 tranche of
ORNAN with Warrants attached of €1M of nominal value has been
drawdown today, corresponding to the issuance of 100 ORNAN with 714
285 714 Warrants attached.
The share consolidation operation will be
implemented in April
In accordance with the 3rd resolution voted at
the Annual General Meeting of 27 December 2021, the Board of
Directors decided to implement in April the consolidation of the
shares composing its share capital at the rate of 10,000 old shares
against 1 new share.
The objective of this merger is to support a new
stock market dynamic of the company as well as to reduce the
volatility of the Delta Drone share price, induced by the low level
of its current value. This transaction will not affect the overall
value of delta Drone shares held in the portfolio by shareholders,
with the exception of the broken ones.
The details and the exact timing of the
operation will be the subject of a specific press release.
Prospects
Delta Drone continues its construction in a
still emerging sector, marked by a multitude of communications and
announcements sometimes unrealistic, often peremptory. Rather than
suggesting that "the drone can do everything", the Groupe strives
to anchor its strategy on solid and reasonable foundations, in
direct contact with the needs of its customers, following a process
of progressive integration of technology into professional uses,
respecting in all respects the regulations and rules of safety of
people and goods.
After 10 years of existence, Delta Drone is in
the process of building with its partner Volatus Aerospace a set
without equivalent in the sector, present all over the world and
with an extremely wide range of services and products. The
combination of French technology and North American commercial
know-how will undoubtedly be a winning combination to accelerate
revenue development and achieve balance in terms of EBITDA. The
achievement of this objective is obviously based on the
rationalization of operating expenses initiated in 2022; so that it
can be achieved in 2023.
On a like-for-like basis, Delta Drone is
expected to see sustained revenue growth this year, in line with
the commercial development of the professional ISS Spotter
(security) and Countbot (inventory) solutions and the growing
success of new private security service offerings.
About Delta Drone: Delta Drone
Group is a recognized international player in the field of civilian
drones for professional use. It develops a range of professional
solutions based on drone technology as well as all associated
services that form a complete value chain.Delta Drone shares are
listed on the Euronext Growth Paris market – ISIN code:
FR0011522168 BSA Y – ISIN code: FR
0013400991www.deltadrone.com
Investor
contacts: Press
contact:
|
|
|
Jérôme
Gacoin |
Marie-Laure Laville |
+33 1 75
77 54 65 |
+33 1 55 02 15 13 |
jgacoin@aelium.fr |
ml.laville@open2europe.comSarah Ousahla+33 1 55 02 15
31s.ousahla@open2europe.com |