2017 financial results and 2018 outlook stable results on a pro forma basis
SPB group, European leader in affinity insurance and services, is reporting its 2017 financial results. The group grew its gross revenue 2.6% to €285 million in 2017, up from €278 million in 2016 on a pro forma basis excluding extraordinary items. Operating profit from ordinary activities rose to €4.8 million in 2017 from €4.3 million in 2016 on a pro forma basis.
Extraordinary and pro forma items
The trend in results between 2016 and 2017 can be more clearly understood when eliminating two major non-recurring events from 2016.
First, consistent with its strategy of focusing on priority areas, SPB sold its subsidiary Loxy, specialised in the treatment of Waste Electrical and Electronic Equipment (WEEE), after observing insufficient synergies with its other services subsidiaries, SPB Services et Point Service Mobiles, which already handle upstream the largest part of the dismantling and reconditioning or recycling of goods.
Second, the group sold a major insurance portfolio in Spain on a run-off basis. The extraordinary income generated by the disposal significantly impacted revenue and operating income from ordinary activities in 2016.
SPB also increased its stake in Phone Service Center Germany from 25% to 75%. Phone Service Center is the international brand of Point Service Mobiles, a local repair network for mobile devices.
Before restatement, gross revenue in 2016 totalled €307 million and operating result from ordinary activities €6.5 million. Restated for these two extraordinary items, and thus on a 2017 pro forma basis, gross revenue in 2016 in pro forma terms comes out at €278 million and operating income from ordinary amounts at €4.8 million in pro forma terms. SPB continues to invest substantially in technologies, including RPA, digital and AI, and in the well-being of its employees, through new interior layouts at its premises. The Group thus invested €4.2 million in 2016.
Strong sales momentum despite a highly competitive environment
SPB maintained its leadership position in France despite increasing competition in the affinity insurance market. With growth of 2.6% (excluding extraordinary items), SPB has new prestigious partners operating across a variety of sectors, among them Auchan, four large optician networks, Allobébé.fr, Boxoffice.fr, Fotojoker, Maison de la Literie, MediaMarkt, Mobilier de France, Showroomprivé.com, Tool-fitness.com and Univers du Sommeil. Existing programmes are being extended with players such as Cdiscount, Crédit Agricole Consumer Finance and L’auto E.Leclerc.
The share of revenue generated internationally continues to increase, coming out at 27% in 2017 compared with 25% in 2016.
2020 Business Plan: reaffirmed strategy
Jean-Marie Guian, Chairman of the Board of the SPB group, said: “As part of its 2020 Business Plan, SPB will pursue its strategy of profitable growth in priority activity sectors, including banking, retail and telecoms, as well as in new high-growth-potential sectors such as e-commerce, health, mobility, travel and life-event insurance. SPB plans to step up its international development, notably in the key markets of Germany, the UK, Benelux, Spain, France, Italy and Poland. To that end, we are envisioning targeted acquisitions in Germany, France and the UK. Lastly, we will continue to make substantial investments in marketing, digital technology and AI”.