ABO Asia Bond Dist

Ghent, 30 September 2016 - 5.00 p.m. - Press Release / Regulated information

ABO-Group Environment, a cluster of integrated engineering and testing companies operating in the areas of soil, environment, geotechnics, energy and waste, announces today the 2016 consolidated financial half-year results.

Highlights of the first half of 2016

• Double-digit growth of revenue and EBITDA
• Increased operational profitability, despite the decline in the international division
• Solid balance sheet and financial position

Forecast 2016

• Takeover of Geomet successfully completed
• Strong order book
• Continuation of growth and investment plan

             
Highlights of the first half of 2016

Double-digit growth of revenue and EBITDA

France
After continuous growth in recent years, the first six months of 2016 were a transition period. The finalisation of a large geotechnical project was replaced by smaller contracts, however the division was confronted with a minor time lag. The environmental division performed exceptionally well, driven, amongst other, by a change in the legislative framework.

Belgium

Belgium reported an organic growth of 5%, mainly by expanding the range of products. ABO is strongly committed to diversification, such as archaeology and BREEAM. In addition to the main activity of environmental remediation, increasingly more consulting and engineering services are being provided according to a one-stop-shop principle. With the 'ABO Environment' concept, ABO is aiming at customers who need a total package of soil, permits, asbestos surveys, probing, sustainability, BREEAM, archaeology, water studies, etc. Therefore, more services were provided within the existing customer base, which ensured considerable growth.

The Netherlands
ABO-Group achieved more than 20% organic growth in the Netherlands. Especially the geotechnical division forged ahead. The consolidation of the environmental testing activities (Sialtech) explains the further growth during this period.

Total group revenues improved by 10.8%.

Increased operational profitability, despite the decline in the international division

The revenue growth resulted in a considerable growth in operating profit before amortisation/ depreciation (EBITDA), by 16% from € 949k to € 1,101k (€ 0.10 per share). The operating profit increased from € 160k to € 210k, in spite of considerably higher depreciation (+13%, from € 789k to € 891k). In addition, the group is still confronted with the negative effects of the loss of export subsidies for its international activities. In the meantime, a number of interesting new projects have been awarded (e.g. Bangladesh, where a solid waste management project is further executed and an additional waste to energy project (biogas generator) has been acquired, and Vietnam and the Maldive Islands), although their positive effect is still not clearly noticeable in the first six months.

The net profit (group share) rose from € 32k to € 114k.

Solid balance sheet and financial position

The total equity of the group amounts to € 11.1 million, whereas the total balance sheet amounts to
€ 32.4 million. The financial liabilities were further reduced over the first six months. The net debt declined from € 4.2 m at the end of 2015 to € 3.9 m mid-2016. The group is ready to further develop the growth path.

Forecast 2016

Takeover of Geomet successfully completed

On the 16^th of June 2016, ABO-Group announced the takeover of Geomet, a company which is active in the Dutch market with both geotechnical consultancy and testing activities. Geomet achieved consolidated revenue in 2015 of € 2.6 million and an operating cash flow of € 380k. The takeover was successfully completed in the beginning of July. Geomet will be consolidated in the second half of the year, which will lead to considerable growth in revenue and result.

Strong order book

The order book is well-filled in each of the markets. This strengthens the outlook for the second half of the year, based on the qualitative execution. The group was again able to win a very large long-term geotechnical contract in France, which will have a positive effect on the prospects for the coming months and years. In the meantime, the Dutch geotechnical market continues to grow strongly. The addition of Geomet to the group portfolio will ensure additional synergy and economies of scale with existing activities.

Continuation of growth and investment plan

ABO-Group continues to grow and is focusing on the organic expansion of the product offering, its machinery and will tap into new growth markets (Central and South-East Asia, Africa and Eastern Europe). In addition, the group's market share will be reinforced via acquisitions in our home countries Belgium, the Netherlands and France.

Geotechnics has in the meantime expanded to become the group's largest division in terms of revenue. The group is continuing its investment programme in machinery. In Belgium, during the fourth quarter, we are expecting the delivery of a new probing truck, equipped with the most modern technology.

The group is looking at further streamlining its legal structure.

Impact of Vlarel

According to Article 53 of VLAREL, the Flemish regulation concerning recognition in the field of the environment, soil experts must be independent of their clients. There is a presumption that ABO is not independent of the Flemish Government, based on the limited shareholding of a former Thenergo shareholder which is linked to the Flemish Government. The Council of State has stated that it is possible to request an exemption in this regard from the minister, who will then determine that ABO does in fact carry out their assignments independently. ABO is following this procedure closely and has obtained the ministerial exemption in virtually all cases.

Financial calendar

31/03/2017: 2016 annual figures
31/05/2017: General Meeting

Statement regarding the fair presentation of the interim condensed consolidated financial information and the fair overview of the interim report

Frank De Palmenaer, CEO, and Johan Reybroeck, CFO, declare that, to their knowledge, the interim condensed consolidated financial information for the six months period ending 30 June 2016, which was prepared in accordance with IAS 34 "Interim Financial Reporting" as applied by the European Union, gives a true and fair view of the assets, the financial position and the results of the company and the companies included in the consolidation. The interim report gives a fair overview of the most significant events and key transactions with related parties that have taken place during the first six months of the financial year and their effect on the interim condensed financial information, as well as a description of the most significant risks and uncertainties for the remaining months of the financial year.

About ABO-Group

ABO-Group is a cluster of integrated engineering and testing companies, operating in the areas of soil, environment, geotechnics, energy and waste. ABO-Group aims to increase its revenue by achieving internal growth and acquisitions, and to expand its range of operations within and outside Europe. For a more detailed description of the risks and the activities of the group, reference is made to the listing document of ABO-Group, available on the website in the "Investors" section (www.abo-group.eu).

For more information, please contact:

T +32 (0)496 59 88 99

Derbystraat 255, Maaltecenter Blok G, B-9051 Gent (SDW), Belgium


This press release is available on our website www.abo-group.eu, as well as the full version of the non-audited interim consolidated financial statements for the period of six months ending 30 June 2016.

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