ACROBATICA GROUP: BOD APPROVES CONSOLIDATED HALF-YEARLY REPORT PARENT COMPANY AND FOREIGN SUBSIDIARIES SEE REVENUES GROW

• Operating revenues of approx. Euro 70.9 million
• Consolidated EBITDA of approx. Euro 7.0 million
• Consolidated EBIT of approx. Euro 3.1 million
• Consolidated net profit of approx. Euro 365 thousand
• Net financial debt of approx. Euro -48.8 million

Genoa, 25 September 2024 – EdiliziAcrobatica S.p.A. (“ACROBATICA” or the “Company”), the parent company of the group bearing the same name, specialising in double safety rope construction such as maintenance and renovation of buildings and other architectural structures, listed on Euronext Growth Milan (ticker EDAC) and Euronext Growth Paris (ticker ALEAC), has announced that today’s Board of Directors meeting examined and approved the consolidated half-yearly report as at 30 June 2024, prepared in compliance with International Accounting Standard IAS 34, relating to the interim financial statements of companies listed on unregulated markets, such as Euronext Growth Milan.

Anna Marras, CEO of Acrobatica stated: “The first six months of 2024 were marked by important changes and developments for the Acrobatica Group. In particular, the decision to reconvert EA110 into Acrobatica Energy, which has just entered the renewable energy market, resulted in a drop in turnover as shown by figures from the first six months of the year. However, despite the lack of State incentives, the Group has proved uncommonly pliable, and equally ready to find a response to the changing economic conditions, which, as is always the case when it comes to Acrobatica, will succeed in paying off in the medium term.
Therefore, I can only be satisfied with the performance of this first six months, especially observing the exponential growth of the parent company EdiliziAcrobatica S.p.A. and the subsidiaries in France, Spain, Monaco and the United Arab Emirates. This growth comes after years of working with managers operating in these countries. Work that focused first and foremost on human resources who were trained and supported so that, having learned the Group’s values and operating methods, they could translate and apply them in their respective territories, re-proposing that successful model that has made Acrobatica the leading company in Italy in outdoor renovations”.

Operating revenues for the first half of 2024 showed a decrease, from Euro 73.7 million in the first half of 2023 to Euro 70.9 million, with a slight 4% decrease despite the significant reduction in turnover recorded by Acrobatica Energy S.r.l. following the end of tax benefits. In particular, compared with the same period from the previous year, revenues showed the following development: the parent company EdiliziAcrobatica S.p.A. recorded an increase of Euro 8.3 million (Euro 61.6 million, against Euro 53.3 million), Acrobatica Energy recorded a decrease of Euro 14.8 million (Euro 460 thousand, against Euro 15.3 million), Enigma increased its revenues by Euro 3 million (Euro 5.1 million against Euro 2.1 million, considering the three months from the date of acquisition), the French company slightly increased its revenues compared to the first half of 2023 (Euro 2.4 million vs. Euro 2.3 million), the Spanish company almost doubled its revenues from approximately Euro 0.7 million to Euro 1.0 million, the Monegasque company contributed revenues of Euro 370 thousand vs. Euro 35 thousand in the same period of 2023.

EBITDA (Gross Operating Margin) amounted to Euro 7.02 million compared to Euro 11.05 million in the same period of the previous year. The trend is mainly related to the decrease in revenues of the subsidiary Acrobatica Energy S.r.l., to be attributed, as mentioned above, to the end of tax incentives.

EdiliziAcrobatica S.p.A. reported EBITDA of Euro 6.6 million, compared to Euro 9.0 million in the first half of 2023.

The French company reported EBITDA of Euro -333 thousand, a strong recovery from the same period of the previous year, when it recorded a negative EBITDA of Euro 736 thousand. The French company’s trend is therefore clearly up from the previous year, and should reasonably continue in the second half of 2024.

The Spanish company, which has been operational since the beginning of FY 2022, albeit still in a start-up phase, recorded an EBITDA of approximately Euro -181 thousand, also an improvement over the previous year, when it amounted to Euro -336 thousand. The Monegasque company recorded a positive EBITDA of Euro 162 thousand, a marked improvement from the Euro -29 thousand recorded in the first six months of 2023.

Also worth mentioning is the growth of Enigma, a company operating in the United Arab Emirates, which recorded EBITDA of Euro 752 thousand, compared to Euro 135 thousand in the first half of last year (calculated on the 3 months after the acquisition). Expectations for Enigma are very high and it is believed that in the coming years it will contribute quite considerably to the Group EBITDA.

The item “Amortisation and depreciation” amounted to Euro 3.8 million. This brought EBIT (Net Operating Margin) to approximately Euro 3.1 million (approximately Euro 7.5 million in the first half of 2023).

The result from financial management was Euro -1.6 million (approximately Euro -1.5 million in the first half of 2023), consisting of financial income of Euro 64 thousand and financial expenses of Euro 1.7 million.

The Net Financial Position (“NFP”) improved by Euro 8.3 million from Euro 57.1 million to Euro 48.8 million. This improvement is attributable to the repayment of almost all loans in the first half of this year by Acrobatica Energy S.r.l. It should be noted that, with the adoption of international accounting standards, the NFP also includes the financial commitment arising from leases in the amount of Euro 22.2 million (Euro 20.8 million as at 31 December 2023) and the option for the acquisition of 49% of Enigma Capital Investment LLC in the amount of Euro 6.2 million as at 30 June 2024.

With reference to the improvement in Net Working Capital, note that tax credits showed a decrease of Euro 35.8 million, mainly attributable to the sale of almost all tax credits in Acrobatica Energy S.r.l. in the first half of 2024.

As far as cash flow is concerned, the operating cash flow in the first half of 2024 was positive in the amount of Euro 15 million, a marked improvement compared to the first half of 2023, when it was negative in the amount of Euro -18.9 million. This allowed the reduction of debt and improvement of the NFP.

Finally, it should be noted that the consolidated net profit as at 30 June 2024 was approximately Euro 365 thousand, compared to Euro 3.6 million in the first six months of 2023.

MAJOR EVENTS DURING THE PERIOD

During the first half of 2024, EdiliziAcrobatica S.p.A. continued its corporate growth strategy.

The Group’s two areas of focus were territorial expansion in both Italy and abroad, and maintaining volumes. 

In February, EdiliziAcrobatica S.p.A. and the Italsoft Group – an Italian leader in enabling technology for digital and energy innovation in the construction and real estate sectors – set up the NewCo Acrobatica Smart Living S.r.l., which operates in the energy modernisation of buildings, the creation of energy communities, and the smart transformation of buildings – while generating business opportunities for the “core” activities” of both parties – and, at a later stage, the provision of services associated with administration and condominium management of a considerable number of properties in Italy using digital platforms. 

As regards the domestic market, in pursuit of the objective to acquire new market shares through the widespread penetration of the Italian territory, 117 operating areas were achieved in the first half of the year, with an increase of 24 units compared to the 93 achieved at 30 June 2023. The number of franchisees is virtually unchanged from the previous year. 

Reinforcement and consolidation of the eight local French units from an organisational and managerial perspective continued, and the same applies for Spain, where the consolidation of the 4 operational units continues unabated.

In the Middle East, where the group is present through its investments in the Enigma Group, growth continued through the opening of new operating branches in Saudi Arabia and Kuwait.

MAJOR EVENTS AFTER THE END OF THE PERIOD

Among the events subsequent to the first half of 2024, it should be noted that on 9 July 2024 EdiliziAcrobatica S.p.A.  resolved to increase the share capital for payment, excluding option rights pursuant to Article 2441, paragraph four, second sentence, of the Italian Civil Code, for an amount equal to Euro 218,436.43, inclusive of share premium, through the issue of 24,120 new ordinary shares, with no indication of nominal value, and with regular entitlement, in favour of Emintad Italy S.r.l., already the owner of 10,198 ordinary shares of the Company. Emintad Italy S.r.l. represents a strategic partner for the Acrobatica Group and has actively contributed in recent years to the realisation of ambitious domestic and international development through strategic acquisitions.

BUSINESS OUTLOOK

Economic growth in the second half of 2024 is expected to remain subdued, with trade tensions between the world’s major economies likely to continue and the risk of persistent geopolitical instability. These factors could have a negative impact on European and global economic stability.

In this context, the Acrobatica Group will focus on improving industrial profitability and maintaining production volumes. Despite the complexity of the scenario, the Group will continue to take all the necessary actions to achieve its objectives, maintaining a positive performance and improving the consolidated operating margin.

In the second half of the year, the Group will maintain a focus on managing costs and investments, with the aim of further optimising net result for the year.

In addition, the Group, thanks to its organisational flexibility, intends to pursue its growth strategy, opening new locations in Italy on the one hand, and continuing its expansion abroad on the other, having already identified some very interesting foreign target companies.

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Today’s BoD meeting also approved the sustainability report drawn up on a voluntary basis as at 31 December 2023, which will be made public and available to stakeholders through the Company’s institutional communication channels.

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Lastly, with a view to pursuing the strengthening of certain internal functions and areas as well as enhancing its internal resources, the BoD approved the proposal to entrust the management and responsibility of the administration, finance and control areas of EdiliziAcrobatica S.p.A., as of 1 October 2024, to Ms Giulia Balocco, who currently holds the position of Administrative Manager for said company. It should also be noted that in choosing Ms Balocco, it was decided to identify a figure within the Group who already reports to and works in close collaboration with Chairman and Group CFO Riccardo Banfo, and who is well acquainted with the dynamics of the Company’s administration, finance and control areas. Over the past few months, the Company has worked to enable Ms Balocco to acquire a range of skills that will help her to fill this role as quickly as possible.

As mentioned, the Company’s new finance director will continue to work under the direct supervision of Chairman Riccardo Banfo, who will remain “Group CFO”, overseeing the areas of responsibility in all the markets covered by the Group through its local subsidiaries.

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This press release is available on the Company’s website https://acrobaticagroup.com/investors/, under the Press Releases section and on the authorised storage system www.1info.it.

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FILING OF DOCUMENTATION

The documentation relating to the Half-Yearly Report as at 30 June 2024, required by current regulations, will be made available to the public at the registered office (Via Turati 29, 20121 Milan) as well as through publication on the institutional website https://acrobaticagroup.com/investors/ under the Financial statements, reports and presentations section.

The following documents are attached to the press release:
• Half-yearly consolidated income statement as at 30/06/2024
• Consolidated statement of financial position as at 30/06/2024
• Half-yearly consolidated cash flow statement as at 30/06/2024

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EdiliziAcrobatica S.p.A. is a leading company in the exterior renovations sector. Founded in Genoa in 1994 by Riccardo Iovino and led by Group CEO Anna Marras, the company has around 2,800 collaborators and operates in over 150 areas in Italy, France, Spain, the Principality of Monaco, the United Arab Emirates, Saudi Arabia and Kuwait. Thanks to its double safety rope technique, the Group is able to carry out construction projects that offer the end customer an efficient, safe and sustainable service. Listed on the Euronext Growth Milan market since November 2018 and on the Euronext Growth Paris market since February 2019, ACROBATICA has incorporated the principles of sustainability into its Business Model, guaranteeing a naturally sustainable service and a responsible approach focused on ensuring the satisfaction and well-being of its internal and external stakeholders. In 2022, the Group was awarded an ESG Rating that places it among the lowest-risk companies in its reference cluster.