Specifications That Merit Attention Regarding Electro Power Systemsâ 2015 Results
21/04/2016 02:30 RSF
http://pdf.reuters.com/htmlnews/8kn...&u=urn:newsml:reuters.com:20160421:nBw206655a
http://www.businesswire.com/news/home/20160420006655/en
PARIS--(Business Wire)-- Regulatory News: Following the 8 April 2016 pressrelease on its 2015 results, Electro Power Systems S.A. (Paris:EPS) ("EPS" or the "Group", listed on Euronext Paris EPS
A) wishes to draw the investors` attention on the following points: (1) Clarification of the apparent inconsistency between:
* the Group`s 2015 consolidated revenues under IFRS, which amount to 344 thousand euros, a 53% decrease over the prior year, and
* the 2015 revenues of EPS Italy, the Group`s operational subsidiary, which amount to 1.2 million euros in Italian GAAP, a53% increase over the prior year.
2015 financial year has been a year of investments to secure a rapid but sustainable growth from 2016 and onwards. As a result, the majority of the sales of goods generated in 2015 (â¬814,490.47, out of the â¬1,167,052 total sales generated), corresponds to sales and services rendered under the Technology Partnership Agreements signed at Group level, with two Italian market players in the systems integration for the energy, telecommunication and data center sector.
However, the acquisition of Elvi Energy and MCM has only been completed in 2016, and the vertical integration of the manufacturing process is still ongoing between Rivoli (Turin, Italy), the new site of EPS Italy launched in December 2015,and Delebio (Sondrio, Italy), the historical plant of Elvi Energy. As a result, all purchase orders generated pursuant to the Technology Partnership Agreements have been entirely outsourced.
In light of such outsourcing, in the consolidated 2015financial statements under IFRS, the revenues generated pursuant to the Technology Partnership Agreements have not been accounted at their gross value of â¬814,490.47, but rather, in accordance with IAS 18, at their net margin value of â¬26,255.
Thanks to this accounting treatment, the outsourcing that took place in 2015 has been more clearly outlined, it being specified, however, that (i) the underlying revenues were generated pursuant to new contracts entered into with the Group and reflectproperly its commercial effort carried out and its development, (ii) EPS Italy takes on, vis-Ã -vis these clients, the legal, industrial and financial risks associated with the performance of these agreements, and (iii) this situation should betemporary as in 2016 the manufacturing plant has been completed and the Elvi Energy acquisition finalised.
(2) As IAS 18 has been applied for the first time during the preparation of the 2015 consolidated financial statements, the revenues for thethird quarter of 2015 and for the first nine months period ended on 30 September amount to, under to IAS 18, â¬90,000 and â¬544,000, respectively, compared to â¬258,500 and â¬723,000, respectively, as published in the 12 November 2015 press r on the third quarter results.
(3) The bridge from the â¬8.3 million Net Financial Position as at 31 December 2015, to the â¬10.2 million Pro-forma Net Cash, is as follows:
* the addition of the â¬1.4 million capital increase reserved to theformer Elvi Energy shareholders and current management, which will take place in 2016 and will be financed by the portion of the proceeds of the Elvi Energy acquisition which has been put in escrow for this purpose,
* the addition of â¬0.82 millionof VAT receivables that will be set-off during the first half of 2016, and
* the deduction of â¬0.32 million corresponding to the nominal price paid on 18 December for the acquisition of MCM.