Press release
McPhy confirms its ramp-up
La Motte-Fanjas, March 13, 2018 - 6:00 p.m. - McPhy (Euronext Paris Segment C: MCPHY, FR0011742329), specialist in equipment for the production, storage and distribution of hydrogen, announced today the significant improvement of its 2017 results.
Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, stated: "2017 highlighted the huge needs of the market induced by the necessary transition toward a decarbonized economy. In this context, McPhy demonstrated the pertinence of its cutting-edge technologies, proven by the international commercial and industrial success of all our activities. This success has allowed us to cross the threshold of € 10 million in revenue. This strong growth, coupled with an excellent control of our fixed costs, has led to significant improvement in our results this year. We are also delighted and proud to join the ranks of the Hydrogen Council[1] as a "supporting member". It's a great opportunity for us to work with our peers in the large-scale deployment of the technologies and uses of hydrogen. Given the strong activity in a lead market and the ongoing ramp-up of our Group, we reaffirm our pursuit of high activity growth in 2018."
Income statement highlights
(in millions of euros) | 2017 | 2016 | Variation |
Revenues | 10.1 | 7.5 | +34 % |
Other operating income | 1.2 | 2.3 | (48 %) |
Income from ordinary activities | 11.3 | 9.8 | +15 % |
Purchases consumed | (5.7) | (5.0) | (14 %) |
Personnel expenses | (6.0) | (6.4) | +6 % |
External expenses | (5.2) | (5.9) | +12 % |
Depreciation allowances and provisions | (0.8) | (1.5) | +47 % |
Recurring operating income | (6.4) | (9.0) | +29 % |
Other operating income and expenses | (0.1) | 0.9 | - |
Operating income | (6.5) | (8.1) | +20 % |
Financial result | (0.1) | - | - |
Income tax expense | (0.1) | (0.1) | - |
Net income | (6.7) | (8.2) | +19 % |
Controlling operational expenditure and strong increase in sales revenue
The sales revenue of McPhy rose by 34 %, crossing the threshold of 10 million euros. This growth was primarily driven by the Europe zone (increased by 84 %), a fast-growing market on which McPhy is well positioned thanks to its historical foundation.
For 2017, strong revenue growth associated with the control of fixed costs led to a consequent improvement of the recurring operating income by +29 %, and of the operating income by +20 %.
As of December 31, 2017, McPhy has a net cash position of 5 million euros[2] with a total balance sheet of 20.5 million euros.
Affirmation for the pursuit of high activity growth in 2018
Hydrogen has become an economic reality, benefiting from unprecedented market momentum: it is attracting the interest of politicians, industrialists and investors globally. At the beginning of what is looking to be a new era, the technologies and the industrial infrastructure of McPhy are ready for the "scaling up" that was announced in the Hydrogen Council study [3].
In the shorter term, the Group is currently making significant contracts which were expected for the second semester of 2017[4] and now deferred to 2018.
Some industrial players work on very large-scale electrolysis platform projects (from 10 to 100 MW), which will have a significant impact on sales revenues. For these markets, McPhy provides a well-positioned offer thanks to its McLyzer generators.
In the context of a leading market, the Group reiterates its forecast for strong activity growth in 2018. To support this "scaling up", the Group continues to explore several strategic options, including industrial partnership, accelerate its commercial expansion and to strengthen its financial structure.
Highlights for 2017
Promising commercial development in the framework of the accelerated deployment of hydrogen at a worldwide level
Post-closing event
The Group is pleased to join the Hydrogen Council as a "supporting member". This global initiative, unique in its kind, aims to show that hydrogen is one of the key solutions of the energy transition. Hydrogen Council members have indicated their willingness to step up their investment in the development and commercialization of hydrogen and fuel cells. Their investments are currently estimated at € 1.4 billion per year[5]. This acceleration will be made possible by stronger support by decision-makers in the role of hydrogen in the future energy mix, in particular via appropriate public policies and programs. This is a great opportunity to work with major industry players in the large-scale deployment of hydrogen technologies and uses.
Next release
Results for the first semester 2018 - Thursday July 26, 2018, after closing of stock exchange.
Balance sheet highlights[6]
Assets (in million euros) | 2017 | 2016 |
Goodwill | 2.5 | 2.5 |
Other assets | 3.2 | 3.6 |
Other non-current assets | 0.3 | 0.3 |
Total non-current assets | 6.0 | 6.4 |
Inventories | 2.5 | 2.7 |
Trade and other receivables | 6.5 | 7.6 |
Current tax assets | 0.5 | 0.9 |
Financial assets | 0.6 | 1.0 |
Cash and equivalents | 4.4 | 7.1 |
Total current assets | 14.5 | 19.4 |
Total assets | 20.5 | 25.7 |
Equity and Liabilities (in million euros) | 2017 | 2016 |
Share capital | 1.3 | 1.1 |
Additional paid-in capital | 22.3 | 28.2 |
Treasury stocks | (0.1) | (0.1) |
Retained earnings | (17.2) | (21.7) |
Total shareholder's equity | 6.4 | 7.6 |
Provisions-over 1 year | 0.4 | 0.4 |
Financial debt and borrowings - over 1 year | 4.4 | 5.7 |
Other non-current liabilities | 0.4 | 0.4 |
Total non-current liabilities | 5.2 | 6.5 |
Provisions-under 1 year | 0.2 | 0.5 |
Financial debt and borrowings - under 1 year | 2.5 | 2.6 |
Trade and other payables | 4.3 | 4.2 |
Other current liabilities | 1.8 | 4.3 |
Total current liabilities | 8.9 | 11.6 |
Total equity and liabilities | 20.5 | 25.7 |
ABOUT MCPHY |
In the framework of the energy transition, and as a leading supplier of hydrogen production, storage and distribution equipment, McPhy contributes to the deployment of clean hydrogen throughout the world. Thanks to its wide range of products and services dedicated to the hydrogen energy, zero emission mobility and industrial hydrogen markets, McPhy provides turnkey solutions to its clients. These solutions are tailored to our client applications: renewable energy surplus storage and valorization, fuel cell car refueling, raw material for industrial sites. As a designer, manufacturer and integrator of hydrogen equipment since 2008, McPhy has three development, engineering and production units based in Europe (France, Italy, Germany). The company's international subsidiaries ensure a global sales coverage of McPhy's innovative hydrogen solutions. McPhy is listed on NYSE Euronext Paris (Segment C, ISIN code: FR0011742329; ticker: MCPHY). |
CONTACTS | |
Media relations NewCap Nicolas Merigeau T. +33 (0)1 44 71 94 98 mcphy@newcap.fr Investors Relations NewCap Julie Coulot | Emmanuel Huynh T. +33 (0)1 44 71 20 40 mcphy@newcap.fr | Follow us at @McPhyEnergy |
[1] Launched at the World Economic Forum 2017, in Davos, the initiative of leading energy, transport and industry companies (including Air Liquide, Alstom, Anglo American, BMW Group, Daimler, ENGIE, Honda, Hyundai, Kawasaki, Royal Dutch Shell, The Linde Group, Total et Toyota), the Hydrogen Council is determined to position hydrogen among the key solutions of the energy transition www.hydrogencouncil.com
[3] http://hydrogencouncil.com/hydrogen-scaling-up/
[4] Press release of January 23, 2018 for revenues 2017
[5] How Hydrogen empowers the energy transition, Study, 2017, Hydrogen Council
[6] Audited accounts in the approval process by the Board of Directors on 12 March 2018