IBA Reports Half Year 2020 Results

Corporate
/
26.08.2020

Open the pdf in the right column to read the full Half Year 2020 press release

LICENSING DEAL IN CHINA WORTH MORE THAN EUR 100M ANNOUNCED TODAY

DOUBLE DIGIT GROWTH OF SERVICES BUSINESS FOR THE THIRD CONSECUTIVE YEAR 

STRONG BALANCE SHEET WITH EUR 95.9 MILLION GROSS CASH AND EUR 3.8 MILLION NET CASH 

STRONG PERFORMANCE IN OTHER BUSINESS LINES PARTIALLY OFFSETS COVID-19 IMPACT ON PROTON THERAPY

Louvain-La-Neuve, Belgium, 26 August 2020 - IBA (Ion Beam Applications SA, EURONEXT), the world’s leading provider of proton therapy solutions for the treatment of cancer, today announces its consolidated annual results for the first half of 2020.

  H1 2020
(EUR 000)

  H1 2019*
(EUR 000)

Variance
(EUR 000)

Variance
%

Net Sales

109 733

128 094

-18 361

-14.3%

PT & Other Accelerators

85 541

102 815

-17 274

-16.8%

Dosimetry

24 192

25 279

-1 087

-4.3%

REBITDA

-3 983

1 358

-5 341

% of Sales

-3.6%

1.1%

REBIT

-9 940

-4 421

-5 519

% of Sales

-9.1%

-3.5%

Profit Before Tax

-11 826

-3 694

-8 132

% of Sales

-10.8%

-2.9%

NET RESULT

-12 043

-5 317

-6 726

% of Sales

-11.0%

-4.2%

* Dosimetry numbers re-integrated, following the decision in 2019 to retain the business. 2019 numbers include figures for the RadioMed business which was sold end of 2019

Olivier Legrain, Chief Executive Officer of IBA commented: “Despite the challenges presented by the COVID-19 crisis that have resulted in some inevitable delays with both signing of new PT contracts and converting our existing EUR 1.1 billion backlog, we are pleased with the solid performance of our other business lines. Our Other Accelerators business has performed well with a strong order intake confirming our position as the clear market leader in this space, thanks to unique innovative solutions such as the Rhodotron®, the Cyclone® KIUBE and IBA’s high energy cyclotrons. Services continued to grow with all PT centers remaining operational, while Dosimetry has been resilient with a solid order intake in the year to date.

“We are seeing encouraging signs that the PT market is maintaining momentum and we were delighted to announce today a licensing deal in China worth more than EUR 100 million with the first payment of EUR 20 million due in the coming days. Our pipeline of further new opportunities is robust and we are in the final stages of negotiating significant contracts in the strategically important regions of the US and Asia, including a multi-room deal in China. Our strong cost control measures and prudent spending have remained in place, whilst allowing for strategic investment in future technologies such as ARC and Flash, and we are pleased to note a reduction in our operating expenditure. We will continue these measures as we make targeted investment in the future growth of the business.

“Our ability to continue to secure contracts is testament to IBA’s unrivalled know-how in particle acceleration coupled with our ability to execute. Alongside our strong balance sheet with a net cash position and our continued focus on innovation, this stands us in good stead for the times ahead.”

Financial summary *

  • Total H1 revenues of EUR 109.7 million, down 14.3% (HY 2019: EUR 128.1 million), the decrease reflecting weakness in the PT equipment revenue line as a result of several material delays associated with the ongoing pandemic.
  • Equipment and Services backlog remains at an all-time high of EUR 1.1 billion, comprising a solid equipment backlog for Proton Therapy and Other Accelerators of EUR 362 million at 30 June 2020 and Proton Therapy services backlog of EUR 706 million
  • REBIT loss of EUR 9.9 million (HY 2019: EUR 4.4 million), reflecting COVID-19 related delays in backlog conversion, partially mitigated by tight cost controls and flat gross margin
  • Total Group loss of EUR 12 million (HY 2019 loss of EUR 5.3 million)
  • Strong cost control measures still in place, whilst allowing for strategic investments in R&D
  • Operating expenses down 2.2%, despite inflation
  • Gross cash balance of EUR 95.9 million (HY 2019: EUR 20.3 million); net cash position of EUR 3.8 million (FY19 net debt EUR 21.3 million) thanks to stringent cash preservation measures

*  The figures for HY 2019 reintegrate the Dosimetry segment following the decision in 2019 to retain the business. They include figures for the RadioMed business which was sold at the end of 2019

 

Business summary and post-period events

  • Significant licensing deal for Proteus®PLUS in China worth more than EUR 100 million with the first payment of EUR 20 million due in the coming days (post-period end)
  • Encouraging pipeline of new opportunities in PT across Asia and the US. The Chinese Government has also announced an increase in proton therapy licenses in China from 10 to 16 this year
  • No new order intake in Proton Therapy in the first half of 2020, with a quiet market overall as a result of COVID-19
  • Backlog conversion strongly affected by COVID-19 with several projects, particularly in Asia, delayed by several months
  • At the end of the period, there were 20 proton therapy projects under construction or installation, comprising 14 Proteus®ONE and 6 Proteus®PLUS solutions.
  • Continued progress on highly innovative technologies such as Motion Management, ARC therapy and FLASH to guarantee ‘first in class’ solutions to our customers
  • Other Accelerators had good order intake, with five systems sold. A sixth accelerator was sold in August 2020, further confirming our position as the clear market leader in this space
  • Resilient performance by Dosimetry, despite COVID-19, with order intake up 17% from last year and sales dropping slightly due to no more RadioMed sales in 2020 (growth of 3% on a like-for-like basis excluding RadioMed numbers)
  • Strong performance by Services, with double digit growth for the third consecutive year and positive impact on recurring revenue as centers remain fully operational, with two new centers starting to generate revenues
  • Board strengthened with addition of Dr. Richard Hausmann and Ms. Christine Dubus as Non-Executive Directors, bringing significant medtech and financial expertise, respectively (post-period end)

 

***ENDS***

 

A conference call to discuss the full year results will be held today at 3pm CEST / 2pm BST / 9am EDT / 6amPDT and can be accessed online at:
http://arkadinemea-events.adobeconnect.com/iba260820/event/registration.html
If you would like to participate in the Q&A, please dial (PIN code 94512536#):

Belgium:                     +32 2 403 58 16
UK:                             +44 20 71 94 37 59
NL:                              +31 207 09 51 19
LU:                              +352 2 730 01 63
US:                             +1 64 67 22 49 16
FR:                              +33 1 72 72 74 03

 

The presentation will be available on IBA’s investor relations website and on:
https://iba-worldwide.com/content/half-year-2020-results-press-release-and-web-conference shortly before the call.

To ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled webcast.

 

Financial calendar

Third Quarter 2020 Business Update:                      19 November 2020
Full year 2020 results:                                               25 March 2021

 

About IBA
IBA (Ion Beam Applications S.A.) is a global medical technology company focused on bringing integrated and innovative solutions for the diagnosis and treatment of cancer. The company is the worldwide technology leader in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA’s proton therapy solutions are flexible and adaptable, allowing customers to choose from universal full-scale proton therapy centers as well as compact, single room solutions. In addition, IBA has a radiation dosimetry business and develops particle accelerators for the medical world and industry. Headquartered in Belgium and employing about 1,500 people worldwide, IBA has the largest number of installed proton therapy systems across the world.

IBA is listed on the pan-European stock exchange NYSE EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB).

More information can be found at www.iba-worldwide.com

 

1 Proteus®ONE and Proteus®PLUS are brand names of Proteus 235

 

For further information, please contact:

IBA
Soumya Chandramouli
Chief Financial Officer
+32 10 47 58 90
Investorrelations@iba-group.com

 

Thomas Ralet
Head of Corporate Communication
+32 10 47 58 90
communication@iba-group.com

 

For media and investor enquiries:
Consilium Strategic Communications
Amber Fennell, Angela Gray, Lucy Featherstone, Lizzie Seeley
+44 (0) 20 3709 5700
IBA@consilium-comms.com

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