Record year for Zetes - Growing margins and profitable growth
- Sales up 29% to EUR 177 million
- Gross margin up from 39.9% to 41.8%
- Recurrent EBITDA up 32% to EUR 15.4 million
- Net current profit up 48%
- Cash flow : EUR 13.7 million
- Dividend up 20% to EUR 0.36 per share
This publication is an abbreviated version of the annual communiqué, the full version of which is available at http://www.zetes.com/en/articles/corporate/news.cfm
Zetes publishes today its annual results and announces that the past year has been very profitable for the company. 2007 closed with net current profit up 47.8% to EUR 6.8 million.
« Behind this spectacular progress lie both good sales growth in both divisions to EUR 177.1 million (+ 29%) and, in particular, the strengthening of the gross margin by 34.8% to EUR 74 million and from 39.9% to 41.8% of sales through a proactive strategy of increasing the share of software and services in assignments involving the integration and implementation of proprietary solutions" says Pierre Lambert, CFO of Zetes.
In Goods ID, internal growth in 2007 was accompanied by improved gross margins and EBITDA/sales margins in those countries where Zetes has previously acquired less well performing companies and where the merging of operating units is producing additional earnings. Zetes has also reached critical mass on the French market with the acquisition of Interscan in the last quarter, and has strengthened its strategic position in Spain by taking over the activities of MD.
2007 was a very good year for all group subsidiaries involved in Goods ID. Sales grew by EUR 34.3 million to EUR 145.5 million (+ 30.80%).
In People ID, the business development strategy has proved its worth, with Zetes chosen by the Portuguese government to provide the software for the electronic identity card for the next six years. Zetes also won and carried out a large part of the biometric voter registration projects in Africa (Togo / Cap Verde), confirming its lead role in this activity.
In the People ID segment, internal growth of 20.2% brought sales to EUR 31.6 million.
Alain Wirtz, CEO of Zetes, declares: "We are very happy with this result. The overall progress of the Group is excellent and all our subsidiaries contributed to this success, showing off sustained efforts. After conquering the English and German markets, new acquisitions allowed us to reinforce our position in countries such as France and Spain, where we today clearly have come to occupy a leading role. Those acquisitions also allow us to expand the solutions portfolio of the Group and to make those available to all our subsidiaries."
The company is confident about the future. In Goods ID, Zetes is continuing its efforts to stand out from its competitors by proposing solutions with increasing software and services components. Strengthening its pan-European player status remains a priority.
Zetes is continuing its internal growth and remains attentive to potential acquisitions.
In People ID, Zetes is continuing work on Build and Operate type contracts, in particular in Belgium and Portugal. The Group is observing growing demand for this type of project
The strategy of added value through associated software and services should make it possible to maintain margins at 2007 levels.
ZETES INDUSTRIES is a leading pan-European company in the value-added solutions and services industry for Automatic Identification of Goods and People (Goods ID and People ID). Zetes uses both emerging and mature technologies (barcode, voice recognition, RFID, smartcards, biometrics), and develops Solution Architecture Frameworks to optimize the business performance of many customers in many market segments: manufacturing, transportation, logistics, retail, healthcare, finance, telecommunication, government and public services. The Zetes group has its headquarters in Brussels, with subsidiaries in Belgium, Germany, France, Ireland, Israel, Italy, the Netherlands, Portugal, Spain, Switzerland and the UK . Zetes currently employs more than 700 employees and generated consolidated revenues of €177 million in 2007. More info: www.zetes.com.