Applus increases its revenue by 10.2% in the first quarter of this year 2023

Applus recorded an operating profit of 25.9 million euros in the first quarter of this year 2023, a figure very similar to that achieved in the same period of 2022, when its profit amounted to 25.8 million euros, the company reported on Tuesday to the National Securities Market Commission (CNMV). . The company has a significant presence in Galicia where, among other assets, it has concession for the exploitation of the ITV community. In fact, last February an operation through which it took control of 100% of the capital of the stations for the technical inspection of cars that was still in the hands of Inversiones Finisterre, an operation for which it paid 18.2 million euros and which also includes ITV from Costa Rica. The operation was closed almost six years ago when Applus acquired 80% of Inversiones Finisterre from Fomento de Iniciativas.

Applus’ adjusted operating result between January and March reached EUR 47.9 million, 12% more than the one published in the same period of the previous year (EUR 42.7 million) and 6.7% above the pro forma adjusted operating result (EUR 44.9 million euros). Adjusted operating profit margin reached 10% in the first quarter of the year, an improvement of 80 basis points compared to that recorded in the first quarter of 2022.

It’s mostly because of ours asset rotation strategywhich includes the recent oil and gas deregulation agreement in the United States,” explained Applus CEO Joan Amigó.

The company received a result before tax of 38 million euros in the year to March, slightly above 37.6 million euros in the first quarter of 2022. At a statutory level, the pre-tax result reported by the group was 17.9 million euros, compared with 19.7 million euros in the same period last year years .

The revenues of Applus by March amounted to EUR 476.8 million, 3.1% more than in the same quarter of the previous year and 10.2% more than the pro forma revenues realized in the first quarter of the previous year.

For the whole of 2023, the company expects a organic revenue growth “mid to high digits” and continue to improve the composition of the business portfolio through new acquisitions and selective divestitures.

“We have had a very good start to the year with strong demand for our services in all the markets we operate in, including some price increases to offset higher the cost resulting from rising inflation (…) Considering our good start to the year, we reiterate our belief in achieving the goals set for 2023. After the sale of oil and gas in the United States, which we expect to be completed in the coming months, we will increase the target margins”, he emphasized is Amigó.

takeover rumors

On the other hand, Applus will hold the next one On June 8, the regular general meeting of shareholdersmeeting to be held after receiving “non-binding and unsolicited expressions of interest” from some investors to buy the company for an amount that would exceed 1 billion euros.

In this context, the group explained it access to information was requested and grantedand that for now “there is no decision by any of the listed investors nor is there any certainty that the listed entities will take any additional action.”

Since the beginning of the war in Ukraine and the rise in interest rates, Applus has appeared in most analytical groups as candidate to obtain a takeover offer (OPA) that would delist it from the stock market.

Shareholders must also confirm at the general meeting re-election of Joan Amigó as CEO of the company, as well as Essimari Kairisto and María José Esteruelas as independent directors.

In addition, the agenda of the meeting will also confirm the re-election of Deloitte as the auditor of the financial statements of the company and its consolidated group for 2023 and the appointment PriceWaterHouseCoopers as their auditor for fiscal years 2024, 2025 and 2026..

There will also be an advisory vote on the 2022 annual director’s compensation report and authorization to the board of directors for possible acquisition of company’s own shares.