Press release
Voisins Le Bretonneux,
Summary financial information for the six months ended
(consolidated accounts approved by the Board of directors on
In K€ - IFRS | H1 2020 ( | H1 2019 ( | Year 2019( |
Turnover | 491 | 105 | 935 |
Operating expenses (net) | |||
Payroll expenses | -1 904 | -2 233 | -3 814 |
Other operating expenses | -1 689 | -2 475 | -4 615 |
Depreciation and amortisation | -307 | -340 | -835 |
Total operating expenses (net) | -3 900 | -5 048 | -9 264 |
Operating result | -3 409 | -4 943 | -8 329 |
Financial result | -648 | -1 573 | -1 859 |
Corporation tax | 0 | 0 | 0 |
Net loss | -4 059 | -6 516 | -10 188 |
Turnover
Turnover for the first half year 2020 was 491 K€ compared to 105 K€ for the first half year 2019.
Operating expenses
The reduction in operating expenses is essentially the result of the ongoing effort to control costs and rationalise the organization including the measures started in spring 2020:
- A salary reduction of 20% for a dozen managers (
France, USA ,UK ) with effect from April and until the end of 2020, with a potential clawback once positive EBITDA reached.
- Implementation of the partial employment scheme for part of the Orège workforce in
France (chômage partiel) and in theUK (furlough).
- Significant reduction in costs: stopping certain service providers (notably at the design office and for the execution of projects in
Germany ) and consultants (mainly for commercial development), renegotiation of real estate leases, insurances, etc. ...
Financing and cash
At
In
Furthermore, a reduction from 5% to 2.5% in the interest rate on the shareholder's current account balance was proposed by
Activity
Over the summer, Orège resumed the execution of 10 out of 16 signed projects as and when borders reopened and as a function of air travel becoming possible and customers authorising our teams to resume project execution on their sites.
Of the 6 remaining projects, we expect to be able to recommence execution of 3 by the end of the year and the remaining 3 during the early part of next year.
Outlook
- Cost reduction efforts will be continued until the end of 2020 to improve the Group’s operating result.
- Anticipated turnover for 2020 would not exceed 2,5 M€.
- During the summer, we saw a resumption of activities in
Great Britain . The majority of Water Companies having now validated their five-year plan 2020-2025 with the regulatorOFWAT , they are free to commit new investment budgets. On23 September 2020 , Orège received its second order for an SLGF solution fromScottish Water (detailed press release to come).
The Orège
- A resumption of activity was also noted in
the United States , where a second sale has just been confirmed with our client GCUA (detailed press release to come).
Further information on the activity and on the implementation of our partnership with Alfa Laval will be the subject of an analysts’ information meeting on
Other information:
The half year report will be published in French on the Company’s website (www.orege.com) 6 October 2020.
Orège has been listed on the regulated market Euronext –
Contact Orège: Financial information –
George.gonsalves@orege.com - mob: +33 6 08 03 50 72
Attachment
VEng Half year results 300920 DEF
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