interim reporting
2011/2012 first half-year results
Return of 1st half-year results into positive territory
Profit from recurring operations: ? 0.3 million
New record level for gross margin: 17.9%
Group share of net profit: ? 0.2 million
Excellent performance of La Galerie, both in terms of business volume and profitability
Continued sound financial position, with a significant net cash position
Results in line with our annual target
Saint-Ouen, 28 November 2011 - 5.45 pm
Commenting on these results, Gauthier Picquart declared: "Once again, the growing significance of La Galerie in the RueDuCommerce business model was highlighted during the first half of the year, both in terms of growth and profitability.
Furthermore, the Group's restructuring implemented in 2010 and a better product mix, supported by a revamped marketing platform, brought about a returned to growth in High Tech, despite a continued difficult market environment.
These strong results bolster RueDuCommerce's standing as a must-use brand in French e-commerce. Moreover, the website has been voted « Favourite website of French web users » for the second time for the purchase of technological products (Fevad/Médiamétrie's 2011 Favourite).
Against this favourable background for the Company, Altaréa Cogedim decided to launch a public takeover bid on RueDuCommerce's shares. This bid was unanimously recommended by the Group's Board of Directors at its meeting of 23 November 2011. "
On 23 November 2011, the Board of Directors of RueDuCommerce, chaired by Gauthier Picquart, Chairman and Chief Executive Officer, approved the financial statements for the first half of the 2011/12 financial year (1 April to 31 March 2011).
* See Glossary at end of document
Main consolidated indicators
(Summary financial statements attached as appendices)**
(? millions) | HY1 2011/2012 | HY1 2010/2011 | % change | FY 2010/2011 | |
Business volume* | 172.1 | 162.5 | 5.9% | 380.3 | |
Sales | 127.1 | 132.5 | (4.1%) | 312.4 | |
Gross profit | 22.8 | 22.2 | 2.2% | 52.6 | |
Gross profit / Sales | 17.9% | 16.8% | 1.1 pp | 16.8% | |
Profit from recurring operations | 0.3 | (0.4) | 3.6 | ||
Other operating income and expenses | 0.0 | (2.0) | (2.4) | ||
Net profit | 0.2 | (2.4) | 1.2 | ||
Equity (end of period) | 34.3 | 30.6 | 34.0 | ||
Net cash position | 18.7 | 17.7 | 18.0 |
** These financial statements were subject to a limited review by the Statutory Auditors
2nd quarter sales: confirmation of positive trends noted in the 1st quarter
A detailed commentary on the sales data for the first half of 2011/2012 was included in our press release of 17 November 2011. Within a general business environment that remained difficult during the summer, during the second quarter La Galerie-related sales grew significantly and the Distribution division returned into positive territory, under the combined effect of the Group's restructuring carried out in 2010, an improved product mix and a revamped marketing platform, which offset a continuing difficult high tech market, particularly for brown goods.
As a result, following a 4.1% decline in 1st half consolidated sales to ? 127.1 million, the business volume* grew by 5.9% to ? 172.1 million, reflecting strong and steady growth in sales of La Galerie's partners (up 50.9% to ? 48.9 million).
Improved profitability due to actions initiated and La Galerie's growing contribution
Gross profit was ? 22.8 million. This accounted for 17.9% of sales, which was 1.1 percentage points higher than in the 1st half of the 2010/11 financial year, representing a historic high level for the Group. This operational performance was particularly due to the growing significance of La Galerie in the Group's business model and to revenues generated by the advertising agency.
The average commission rate charged by La Galerie increased from 7.5% to 7.9% during the period. This data further confirms the Group's capacity to generate growth on two fronts, i.e. in business volume and the commission rate, thereby generating exponential growth in La Galerie's profitability.
* See Glossary at end of document
External charges stabilised at ? 13.7 million during two consecutive half-year periods. Personnel costs decreased by 7.7%, thus reflecting a year-on-year decline in the average workforce from 314 to 271 employees.
Profit from recurring operations was ? 0.3 million, compared to a loss of ? 0.4 million in the 1st half of the previous financial year.
Therefore, a net profit of ? 0.2 million was achieved, compared to a net loss of ? 2.4 million in the 1st half of the previous year.
At 30 September 2011, equity amounted to ? 34.3 million, compared to ? 30.6 million a year earlier. The net cash position was ? 18.7 million. The Group remains debt-free.
Working capital requirements decreased by ? 0.8 million during the first half. The net cash flow from operating activities was ? 1.1 million, which was higher than the ? 0.5 million achieved in the 1st half of 2010/11.
The net cash flow used in investing activities was stable compared to the same period of the previous year, at ? 0.5 million, compared to ? 0.6 million.
Outlook
The first half of the year showed a clear improvement in profitability, as well as a sales recovery.
The Christmas and New Year season, a key period for shaping up full-year profitability, looks promising despite depressed consumer spending in traditional retail:
3 million French people will make their first online purchase this Christmas
The total value of gifts purchased online will significantly increase in 2011 compared to 2010.
Against this background, the Group confirms its full-year target.
Recent events relating to the draft takeover on the shares in RueDuCommerce launched by Altacom, recommended by the Board of Directors
On 23 November 2011, the Board of Directors of the Company held a meeting chaired by Gauthier Picquart with a view to reviewing the draft takeover bid and issue a qualified opinion on the whether the bid is in the interest of the Company, its shareholders and its employees, in accordance with the provisions of Article 231-19 of the AMF's General Regulations.
The draft prospectus in response to the bid is available on the AMF (www.amf-france.org) and RueduCommerce (www.rueducommerce.fr:
http://www.rueducommerce.fr/) websites and is available free of charge on request from RueduCommerce, 44-50 avenue du Capitaine Glarner, 93585 Saint-Ouen cedex, France and Natixis, 30, avenue Pierre Mendès France, 75013 Paris, France.
***
Shareholders' agenda 2011-2012 (publication after close of trading)
26 January 2012: 3rd quarter sales
Glossary
Business volume: includes consolidated sales of products and services distributed by the Company, plus sales of La Galerie's partners.
Overall Group Traffic: the number of visits, i.e. the number of individual sessions initiated by all visitors to Group websites over the past 12 months.
About RueDuCommerce Established 12 years ago, RueDuCommerce is the leading independent e-commerce Group quoted on the Paris Stock Exchange. The RueDuCommerce Group:
The Group is listed on Compartment C of the NYSE Euronext Paris Stock Exchange (ISIN: FR0004053338 - Ticker: RDC) Please visit our website for more information: www.rueducommerce.com/corporate: http://www.rueducommerce.com/corporate |
Contacts
Investor Relations
Laurent Bertin - Chief Financial Officer
Laurent.bertin@rueducommerce.com:
mailto:Laurent.bertin@rueducommerce.com
Arnaud Salla
Quadrant Finance
Tel: +33 6 16 17 52 26
arnaudsalla@quadrant-finance.com:
mailto:arnaudsalla@quadrant-finance.com
Press Relations
Cécile Courtois
cecile.courtois@rueducommerce.com:
mailto:cecile.courtois@rueducommerce.com
Agnès Gilbert
Eudoxie PR
Tel: +33 1 70 38 25 54 / +33 6 84 61 30 71
a.gilbert@eudoxie-pr.com:
mailto:a.gilbert@eudoxie-pr.com
RueDuCommerce Group
Consolidated income statement (? thousands)
Approved by the Board of Directors
6 months | 12 months | 6 months | |
30/09/2010 | 31/03/2011 | 30/09/2011 | |
Net sales | 132,487 | 312,445 | 127,051 |
of which Merchandise sales | 123,620 | 290,783 | 116,705 |
of which Provision of services | 8,867 | 21,662 | 10,346 |
Other revenue from ordinary activities | 78 | 86 | 7 |
Purchases consumed | (110,310) | (259,941) | (104,303) |
Gross profit | 22,255 | 52,590 | 22,755 |
Personnel costs | (7,211) | (13,970) | (6,656) |
External costs | (13,598) | (31,046) | (13,731) |
Taxes and duties | (614) | (1,287) | (574) |
Amortisation and depreciation charges | (646) | (1,424) | (629) |
Impairment and net provision charges | (654) | (1,107) | (751) |
Other income from ordinary activities | 93 | 99 | 27 |
Other expenses from ordinary activities | (55) | (297) | (187) |
Profit/(loss) from recurring operations | (429) | 3,558 | 255 |
Other operating income | 0 | 0 | 0 |
Other operating expenses | (1,993) | (1,992) | 0 |
Operating profit/(loss) | (2,422) | 1,566 | 255 |
Income from cash and cash equivalents | 32 | 175 | 119 |
Gross cost of financial debt | 0 | (2) | (2) |
Net financial income | 32 | 173 | 118 |
Other financial income | 72 | 170 | 38 |
Other financial expenses | (114) | (187) | (79) |
Pre-tax profit/(loss) | (2,432) | 1,723 | 331 |
Income tax | 0 | (566) | (127) |
Net profit/(loss) from continuing ordinary activities | (2,432) | 1,157 | 205 |
Profit from discontinued operations | 0 | 0 | 0 |
Net profit/(loss) for the period | (2,432) | 1,157 | 205 |
Group share | (2,432) | 1,157 | 205 |
Minority interests | |||
30/09/2010 | 31/03/2011 | 30/09/2011 | |
Average number of shares outstanding | 11,089,748 | 11,089,748 | 11,089,748 |
Earnings/(loss) per share | (0.22) | 0.10 | 0.02 |
Dilution: potential number of new shares | 11,688,048 | 11,588,448 | 11,551.148 |
Diluted earnings/(loss) per share | (0.21) | 0.10 | 0.02 |
RueDuCommerce Group
Consolidated balance sheet (? thousands)
Approved by the Board of Directors
ASSETS | 30/09/2010 | 31/03/2011 | 30/09/2011 |
Goodwill | 91 | 91 | 91 |
Intangible assets | 771 | 396 | 283 |
Property, facilities and equipment | 1,385 | 1,124 | 1,086 |
Long-term investments | 327 | 314 | 336 |
Deferred tax assets | 117 | 105 | 112 |
Other non-current assets | 0 | 0 | 0 |
NON-CURRENT ASSETS | 2,691 | 2,030 | 1,908 |
Inventories | 28,711 | 20,892 | 24,230 |
Trade receivables (net) | 15,895 | 17,614 | 15,921 |
Other receivables and accruals | 7,711 | 10,207 | 10,365 |
Cash and cash equivalents | 17,684 | 18,035 | 18,742 |
CURRENT ASSETS | 70,000 | 66,748 | 69,258 |
TOTAL ASSETS | 72,691 | 68,777 | 71,166 |
EQUITY AND LIABILITIES | 30/09/2010 | 31/03/2011 | 30/09/2011 |
Share capital | 2,772 | 2,772 | 2,772 |
Share premium | 23,551 | 23,346 | 23,440 |
Consolidated reserves | 6,746 | 6,750 | 7,898 |
Net profit/(loss) for the period | (2,432) | 1,156 | 205 |
EQUITY | 30,637 | 34,024 | 34,316 |
Financial debt (non-current portion) | 0 | 0 | 0 |
Deferred tax liabilities | 171 | 42 | 7 |
Provision for liabilities and charges | 1,427 | 543 | 594 |
Other non-current liabilities | 0 | 0 | 0 |
NON-CURRENT LIABILITIES | 1,598 | 585 | 601 |
Financial debt (current portion) | 24 | 42 | 96 |
Trade payables (net) | 31,604 | 22,160 | 25,809 |
Other payables and accruals | 8,829 | 11,965 | 10,345 |
CURRENT LIABILITIES | 40,456 | 34,167 | 36,250 |
TOTAL EQUITY AND LIABILITIES | 72,691 | 68,777 | 71,166 |
RueDuCommerce Group
Consolidated cash flow statement (? thousands)
Approved by the Board of Directors
30/09/2010 | 31/03/2011 | 30/09/2011 | |
Consolidated net profit of companies included in Group structure | (2,432) | 1,156 | 205 |
Attributable to minority interests | 0 | 0 | 0 |
Consolidated net profit/(loss), including portion attributable to minority interests | (2,432) | 1,156 | 205 |
+ / - amortisation, depreciation and provision charges | 1,218 | 1,003 | 952 |
+ / - expense (income) relating to stock options | 112 | (82) | 63 |
+ / - (capital gains (losses) on disposals | 16 | 21 | (8) |
+ / - other income and expenses | 0 | 0 | 0 |
Free cash flow after net cost of financial debt and income tax charge | (1,085) | 2,098 | 1,211 |
+ / - net cost of financial debt | (32) | 173 | (119) |
+ / - income tax charge (including deferred taxation) (increase)/decrease | 0 | 567 | 127 |
Free cash flow before net cost of financial debt and income tax charge | (1,117) | 2,838 | 1,219 |
+ / - taxes paid/refunded | 1,050 | 970 | (920) |
+ / - change in working capital requirements from operations | 550 | (2,628) | 757 |
Net cash flow from operating activities | 483 | 1,179 | 1,056 |
Purchase of PFE and intangible assets | (553) | (745) | (479) |
Proceeds from disposal of PFE and intangible assets | 0 | 50 | 0 |
Change in loans and advances granted | (6) | 7 | (23) |
+ / - impact of changes in Group structure | 0 | 0 | 0 |
Net cash flow used in investing activities | (559) | (688) | (501) |
+ / - proceeds from issuance of share capital | 0 | 0 | 0 |
- cash dividends paid to equity holders of the parent company | 0 | 0 | 0 |
- cash dividends paid to minority interests | 0 | 0 | 0 |
+ / - buyback of treasury shares | (21) | (31) | 32 |
Lease repayments | 0 | 0 | 0 |
+ / - translation adjustment | 0 | 0 | 0 |
+ / - movements in current accounts | 0 | 0 | 0 |
+ / - proceeds from new borrowings and repayment borrowings | 0 | 0 | 0 |
Net financial income | 32 | (173) | 119 |
Net cash flow from/(used) in financing activities | 11 | (205) | 151 |
Total change in cash and cash equivalents | (64) | 287 | 705 |
Opening balance | 17,748 | 17,748 | 18,036 |
Closing balance | 17,684 | 18,036 | 18,742 |
Total change in cash and cash equivalents | (64) | 287 | 705 |
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Source: Rue du commerce via Thomson Reuters ONE