Riber posts disappointing 2015 results
MBE firm Riber has released its full-year earnings for 2015, which show a significant contraction in revenues and earnings.
At December 31, 2015, Riber's revenues came to â‚¬12.8 million, down 29 percent year-on-year. This contraction in business is linked in particular to the significant fluctuations in MBE system sales. Over the full year, nine R&D systems were delivered and invoiced, including four in Q4, compared with a total of 11 for the whole year in 2014.
Sales of services and accessories are down from 2014, which included a major sale for the full reconfiguration of a production system in France (â‚¬1.2 million). The contraction in demand for resupplying machines has been partially mitigated by the redeployment of the range with leading customers, as well as the diversification of the products and services offered following the acquisition of MBE Control Solutions in the USA.
Sales of cells and sources are growing strongly, thanks to the development efforts made, making it possible to further strengthen and diversify the ranges of cells offered.
The contraction in sales is reflected in a reduction in the gross margin, which came to â‚¬1.9 million for 2015, compared with â‚¬3.8 million in 2014. It includes a further write-down of inventories for â‚¬0.2 million (â‚¬0.5 million in 2014) in line with the lower level of business.
Sales and administrative costs are down 5 percent, following the savings measures rolled out by the company over the past two years. Research and development costs are up â‚¬0.6 million from 2014.
Cash at December 31, 2015 represented â‚¬0.6 million and total short term debt of â‚¬1.2 (â‚¬0.5 million of bank overdraft and two export credit, gathered in second quarter 2015 for a total amount of â‚¬0.7 million).
Consolidated cash as at December 31 is down from the end of 2014 (â‚¬2.0 million). Faced with a lower level of business, cash flow from operations is negative, coming in at â‚¬4.7 million, partially offset by the significant improvement in working capital requirements (-â‚¬2.3 million), thanks to a reduction in production lead-times and trade receivables.
In order to stream line its treasury position, company is under process of a bargain agreement with regards to the selling of a portion of its facility.
Shareholders' equity, after factoring in consolidated earnings, is down â‚¬6.2 million year-on-year to â‚¬15.4 million.
The order book at March 31, 2016 shows a significant improvement (â‚¬12.4 million, up from â‚¬4.5 million at end-March 2015). It includes seven MBE systems, with two production machines to be delivered in 2016, as well as a higher level of orders for services, cells and accessories (â‚¬2.9 million at end-March 2016).
Riber says that business is expected to pick up again in 2016 thanks to this positive trend for the order book.