Impressive growth fuelled by rapid expansion in core markets as well as in target development countries
Transics International, one of the leading European players in fleet management solutions, today announced its financial results for FY 2007, which ended December 31, 2007. The Belgium-based company, listed on Euronext Brussels had a record year in 2007 with revenues up 72.3%, a two-fold increase in operating results and a ten-fold rise in net results compared to FY 2006.
Transics closed fiscal 2007 with total revenues of EUR 43.51 million. Gross profit grew by 79.6% from EUR 17.69 million in FY 2006 to EUR 31.76 million in 2007. EBITDA grew 82.5% to EUR 13.17 million in 2007.
Thanks to the strong revenue growth and improved operating margin, the operating result reached EUR 10.71 million or 24.6% of revenue, up 109% over the same period last year. The strong revenue growth, stable EBITDA margins, lower financial charges and effective tax rate in H2 2007 also led to an impressive improvement in net result, which grew almost ten-fold to reach EUR 5.21 million or EUR 0.75 per share.
Investments in rapid expansion
The strong 2007 growth figures are attributable to two main factors: Transics’ solid performance in its core markets of France and the Benelux (+57%) and an accelerated expansion in the rest of Europe (+243%), with strong results in Germany and Spain, and sales efforts gathering momentum in the UK, Ireland, Scandinavia and Central and Eastern Europe.
Transics made considerable investments in infrastructure and in sales and marketing in 2007 to maintain its growth momentum in the long run. Operating expenses increased from EUR 12.47 million in FY 2006 to EUR 20.55 million in FY 2007 – an increase of 65%. Sales and marketing, which have risen by 72%, account for a major part of that growth. Nonetheless, operating expenses as a percentage of revenues decreased from 49.4% to 47.2% in 2007, reflecting Transics’ good operating leverage characteristics.
In addition to its successful expansion, business highlights for Transics in 2007 included the acquisition of DIS, an expert in IT solutions for tacho-based driving time registration, in April 2007, and the successful listing on Euronext Brussels in June.
Promising outlook for 2008
“With a solid growth strategy and the strengthening of our management committee and our HR, Sales and Marketing and R&D teams, Transics has exceeded expectations in 2007”, said Walter Mastelinck, CEO Transics, commenting on the results. “Looking ahead to fiscal 2008, we expect revenues to grow organically by more than 25% over FY 2007. Gross margins are expected to remain stable but the cost of geographic expansion in greenfield territories, will naturally weigh slightly on EBITDA margins in H1 2008. I expect EBITDA margins to recover rapidly afterwards though. The release of a new web-services based, back-office software platform in H1 008 will, no doubt, further boost our growth.”
Transics International, listed on Euronext Brussels, develops and commercializes fleet management solutions (on-board computers, software and services) for the transport and logistics sector. With an installed base of over 46,500 on-board computers, Transics is one of the leading European players in its sector. In addition to its headquarters in Ypres (Belgium), Transics is active in 23 European countries.