SECO SpA Group approves the consolidated financial results for first half year of 2020

Revenues as at June 30, 2020 grew by 20% with a strong increase in the group’s profitability
 

The Board of Directors of SECO SpA, a company established by Daniele Conti and Luciano Secciani in 1979, a leading high-tech manufacturer of computer miniaturization and “ready-to-use” IoT integrated systems, with shareholder FII Tech Growth fund backed by Cassa Depositi e Prestiti, gathered today and approved economic and financial data for the first half of 2020, prepared according to OIC domestic accounting standards and not yet subject to audit. The Board of Directors also positively acknowledged the progress made on the project to go public on the STAR segment of Borsa Italiana (Milan Stock Exchange) recently approved.
  “The excellent results of the first half of 2020, achieved despite the difficulties of the economic context that we all know, confirm the solidity of SECO Group’s competitive positioning and the validity of the strategy currently being implemented.” said Massimo Mauri chief executive officer of SECO SpA, “The outlook for the coming quarters is positive and will be supported by new growth initiatives both organic and through external activities aimed at further strengthening the Group also in view of the listing on the stock exchange, that we expect to take place in 2021. We are also proud – Mauri continued – not only to have maintained employment levels but to have continued to hire highly qualified personnel in such a difficult time for the Italian economy.”

Analysis of the group's economic and financial management in the first half of 2020

In the first half of 2020 consolidated revenues reached 38.2 million Euros, with a 19,7% increase compared to the same period of 2019, thus confirming the growth trend from the previous years.

Margins grew more than proportionally thanks to the focus on greater value-added products and more profitable end markets. Gross margin was equal to 48.4% of revenues, with an improvement of 450 basis points year-on-year, and EBITDA margin had an incidence on revenues of 19,6%, improving of 540 basis points year-on-year. In absolute value EBITDA reached 7.5 million Euros in the first half of the year, up by 64,9% compared to the same period of 2019.

The growth of the pre-tax Profit was also remarkable, which increased by 42% year-on-year reaching 4.8 million Euros.The evolution of the Net Financial Debt of 8.7 million Euros at the end of June 2020 is under control and substantially stable compared to 8.2 million Euros at December 31^st, 2019 despite the ongoing investment plans in tangible and intangible assets, the finalization of the acquisition of InHand Electronics in the United States and the increase in stock of raw materials in preparation to the launch of new products in the second half of the year.

Outlook for the second half of 2020
The outlook for the second half of 2020 is positive both in terms of growth in sales of embedded products, the historical core-business of the group, and the beginning of the commercialization of Biorespira, the innovative non-invasive pulmonary ventilator conceived for Covid patients and patients affected by respiratory diseases. Regarding the Internet of Things services and solutions, the recent acquisition of Ispirata, a data orchestration company, together with further ongoing initiatives is expected to generate additional growth opportunities.