Orège Half-year results 2021

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Press release

Neighbors Le Bretonneux, 11e October 2021 (7h00)

BARLEY GROUP ACTIVITY AND HALF-YEAR RESULTS 2021
___________________________________________________________________

Financial summary iinformation for the six months ended June 30the 2021
(consolidated accounts closed by the Board of Directors on October 8, 2021).
The statutory auditors are completing their limited review procedures.

In € thousands – IFRS

H1 2021
(June 30, 2021)

H1 2020
(June 30, 2020)

Year 2020 (December 31, 2020)

Turnover

790

491

2,006

Operating Expenses (report)

Salary expenses

-1 841

-1904

-3 334

Other operating expenses

-1 527

-1 689

-3,277

Depreciation and amortization

-140

-307

-1 255

Total operating expenses (net)

-3 508

-3,900

-7 866

Operational results

-2 718

-3,409

-5 860

bottom line

-49

-648

-1 563

Corporation tax

0

0

0

Net loss

2 767

-4,059

-7,423

Turnover
Revenues for the first half of 2021 amounted to € 790K compared to € 491K in the first half of 2020.

Operating expenses
The drop in operating expenses is the result of the continued efforts to rationalize the organization and control costs launched in spring 2020 with the onset of the health crisis.

bottom line
The financial result is made up of the interest charge on the debt of € 593 K (€ 372 K in H1 2020) and the exchange gains on the GBP and USD operational debit balances of € 544 K (exchange losses on the GBP and USD operational accounts receivable of € 276k for H1 2020).

Financeis lying and cash
As of June 30, 2021, Orège had € 116,000 in cash and cash equivalents (€ 403,000 as of December 31, 2020) and the undrawn balance of shareholder current account advances granted by Eren Industries amounted to 2,000,000. €.

As of June 30, 2021, financial debts amounted to € 24,511,000, including € 22,740,000 in respect of advances to the shareholder’s current account drawn down (December 31, 2020: € 23,423,000, of which € 20,909,000 in respect of advances in the shareholder’s current account drawn). Equity at June 30, 2021 amounted to – € 21,788K (December 31, 2020: – € 18,647K).

In July 2021, Orege received € 396,000 for the mobilization of its 2020 research tax credit (CIR) and in October Eren Industries granted the company an additional € 2,500,000 in advance in the shareholder’s current account. which should enable the Group to meet all of its financing needs until June 30, 2022.

Activity and outlook

wastewater treatment plant, Thames Water has purchased a first Orege solution for the treatment of sludge (see press release dated 06/10/2021).
The adoption of Orege technology by world-renowned Thames Water and the purchase of a first solution is a milestone in Orege’s development.
An important advantage of the Orege solution is that it allows Thames Water to reduce its CO2 emissions and improve its environmental footprint. The return on investment of this 1st Orège project will be around 2 years for Thames Water.
Orege seeks to explore all strategic avenues to implement its solutions in the Thames Water group.

  • As early as the summer, several Water Utilities in the UK, just as Thames Water initially did, sought to lease Orege solutions on a short-term basis for a few months.

This will allow them to immediately benefit from improvements in the carbon and environmental footprint, as well as the corresponding financial savings, while awaiting the mobilization of the necessary financial resources, often not yet budgeted for the purchase of equipment for Orège solutions.

To date, 6 Orege solutions are rented by 3 Water Utilities with an overall monthly remuneration of approximately € 35,000.
These 6 leased solutions should result in future equipment purchases (fixed or mobile units), but this pragmatic approach has the effect of delaying the expected tied sales by a few months (we estimate from 3 to 12 months). The corresponding capital transfers could represent € 1,700,000 to € 2,700,000 in future turnover in total.

The recent sale of a first unit to Thames Water, after such a rental period, demonstrates the relevance of this business model.

• In its 22sd April 2021 press release relating to the 2020 annual results and the 2021 outlook, Orege reaffirmed its confidence in the possibility of achieving the objectives announced at the information meeting of December 7, 2020, but subject to:

– the reopening of borders, in particular with the United States and with Japan,

– a resumption of operations close to normal with our customers and prospects.

It is clear that this is not quite the case now.

In particular, 4 projects (United States, Germany, Spain and Japan) for which the corresponding contracts have been signed and Orege solutions already installed on the sites concerned, were to be implemented and completed in 2021.
To date, certain access constraints to the sites concerned and / or the reopening of borders (Japan) remain, the realization of these 4 projects will not be finalized until 2022. These 4 projects represent around 1 M € of turnover. ‘business.

• In view of the above, the consolidated turnover of Orège for 2021 should be around 2,500 K € (compared to 2,000 K € for 2020).

• Numerous projects are currently under discussion with Water Utilities in the United Kingdom or municipalities in the United States with the main objective of improving carbon and environmental footprints in a global context where increasingly powerful spheres of influence ( politicians, NGOs, populations, private actors, etc.) are campaigning in this direction, helped by financial incentives and regulatory changes.

• Commercial activity should also be able to resume in 2022 in Italy, Germany, Spain and Japan after a complete freeze of activities since March 2020.

• The partnership with Alfa Laval is again discussed with the management of this Group in view of the collaboration since the summer of 2020 which has been handicapped by the constraints linked to the pandemic. The first commercial benefits materialized in the summer of 2021.
The partnership should therefore be strengthened, in particular to take advantage of the recent more sustained recovery in activity in the wastewater and sludge treatment sector.

• The noticeable acceleration in requests for project qualification and bid negotiations in the United States and the United Kingdom is a positive sign of the dynamism expected in 2022.
Orege has decided to accelerate this resumption of activity by strengthening its sales teams in the United Kingdom and the United States.

Other information:
The half-year report will be published in French on the Company’s website (www.orege.com) 13e October 2021.

Orege has been listed on the regulated market Euronext – Paris since 5e July 2013 – ISIN FR0010609206 – OREGE.

Contact Orege: I financeInformation – George Gonsalves
[email protected] – mob: +33 6 08 03 50 72

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