zh 
GROUP REVENUES GROW 16.4% WITH INCREASED OPERATIONAL PROFITABILITY
SECO SpA’s result highlights for the 2020 fiscal year:
· Revenues of €76.1 million, a 16.4% increase compared to 2019
· Gross Profit Margin of 47.2% of revenues, substantially stable compared to the previous year
· Adjusted EBITDA of €15.9 million, with year-on-year growth of 35.3% and an incidence on revenues of 20.9%, a year-on-year improvement of 292 basis points
· Confirmation of a strong commitment to Research & Development: 10.9% of revenues were earmarked for research, with an expenditure of €8.3 million
· 19% growth in the workforce, from 381 employees at the end of 2019 to 454 at the end of 2020
· Adjusted Net Debt of €11.4 million, compared to €7.3 million on December 31, 2019, after completing acquisitions for €4.9 million
2021 under the mark of growth and sustainability:
· Approval of IPO plans on MTA-STAR
· New Board of Directors Board of Statutory Auditors and legal financial auditors appointment
· Continued integration of new acquisitions, with the creation of SECO Mind
· Implementation of the strategy to reduce carbon footprint: from 2021, the electrical energy powering our Italian production plants will come exclusively from renewable sources
Arezzo – March 1, 2021 – Today’s Shareholders’ Meeting of SECO SpA (SECO) - a leader in the sector of technological innovation for IoT hardware-software solutions, founded in 1979 by Daniele Conti and Luciano Secciani and an investee of Fondo Italiano Tecnologia e Crescita, managed by Fondo Italiano d'Investimento SGR - approved plans for an IPO that aims to further grow and internationalize its business, as well as the 2020 fiscal year’s economic and financial results, prepared in conformity with IFRS accounting principles and submitted for financial audit. The meeting also adopted the governance resolutions functional to the IPO project, providing, in particular: (i) the appointment of the new Board of Directors, confirming the positions of President Daniele Conti and CEO Massimo Mauri for the period 2021-2023; (ii) the appointment of the board of statutory auditors and (iii), to grant the appointment for the financial auditors.
The IPO plans approved by the Meeting call for an offering of the company’s ordinary shares on the Mercato Telematico Azionario organized and managed by the Italian Stock Exchange (“MTA”), STAR Segment.
The IPO, which is expected to be finalized by the end of the first semester of 2021, will include significant primary market capital raising, designed to provide the company with the resources necessary to further accelerate the growth path for the mid-long term.
Marco Greco’s Value Track has been appointed Financial Advisor for the operations, offering support to Joint Global Coordinators Goldman Sachs and Mediobanca, with the latter also taking on the role of Sponsor. Legal oversight has been entrusted to the firms of Gatti Pavesi Bianchi and White & Case, KPMG will be Management Systems and Extra-Accounting Data Advisor, while Auro Palomba’s Community Group is the Communications Advisor. Deloitte will oversee the financial auditing aspects of the operation.
ANALYSIS OF THE GROUP’S ECONOMIC AND FINANCIAL MANAGEMENT IN THE 2020 FISCAL YEAR
In the 2020 fiscal year sales Revenues amounted to €76.1 million, a 16.4% increase from 2019, confirming both the growth trend begun in previous years and SECO’s resilience in the face of the effects of the Covid-19 pandemic.
Profit marginality has remained high thanks to a focus on products with greater added value and on the most profitable end markets. Gross Profit Margin amounted to 47.2% of Revenues, substantially stable compared to the previous year, while the Adjusted EBITDA Margin registered an incidence on revenues of 20.9%, a year-on-year improvement of 292 basis points. In terms of absolute value, the EBITDA reached €15.9 million, growing 35.3% compared to 2019.
The evolution of the adjusted Net Debt remained under control: €11.4 million at the end of 2020, roughly 0.7 times the Adjusted EBITDA, compared to €7.3 million on December 31, 2019 and reflecting the Group’s €13.5 million in investments, €4.9 million of which went toward acquisitions (InHand Electronics in the United States, Ispirata Srl and Hopenly Srl in Italy).
The integration of the new acquisitions continued throughout 2020, with the creation of SECO Mind, a sector that brings together the Group’s expertise in the fields of artificial intelligence, IoT and data orchestration. Just a few weeks ago SECO Mind launched the Clea suite, which gathers data on site, transfers it to the cloud, and makes it usable through real-time analysis to provide information that makes the difference in business processes.
An initiative that confirms SECO’s strong commitment to Research & Development: 2020 saw a cash outlay of €8.3 million, equal to 10.9% of Sales Revenues, which led to the market launch of more than twenty new products, among them Clea. At the end of 2020, roughly 29% of the work force was involved in activities directly connected to Research & Development.
In 2020 the workforce grew as well, from 381 employees at the end of 2019 to 454 at the end of 2020, a 19% growth that partly reflects both new hires and the effects of the Group’s acquisitions. With a female presence of over 30%, an average age under 35, and over 2,400 training hours, SECO represents a model for sustainable growth and talent development.
In 2020 SECO continued on the path to reducing its environmental impact, aiming to reduce its carbon imprint and achieve zero emissions in 2024. Thanks to a signed supply agreement, beginning this year all the electrical energy that powers the Group’s production plants in Italy will come from renewable sources.
SECO
SECO is a center of excellence in the field of technological innovation and integration. For over forty years, the company has designed and produced solutions ranging from the single microcomputer to integrated systems and software platforms, consolidating its role as a strategic partner in the digital transformation and IoT evolution of businesses in Italy and abroad. With over 450 employees and a turnover, as of December 31, 2020, of €76,1 million, SECO supplies a variety of industrial sectors including healthcare, industrial automation, logistics and transportation, and numbers among its customers market leaders such as Cimbali, Esaote, Evoca and Technogym. SECO is one of the founders of the international computer miniaturization standard Qseven® and collaborates regularly with universities, research centers, and innovative start-ups. SECO operates on a global scale with offices in Italy, Germany, the US, India and Taiwan. SECO is an investee of Fondo Italiano Tecnologia e Crescita, managed by Fondo Italiano d'Investimento SGR.
For more information: www.seco.com
**NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF AMERICA, THE UNITED KINGDOM, CANADA, AUSTRALIA, OR JAPAN **
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO “U.S. PERSONS” (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)), THE UNITED KINGDOM, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL
The distribution of this press release, directly or indirectly, in or into the United States, the United Kingdom, Canada, Australia or Japan is prohibited. This press release (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, the United Kingdom, Canada, Australia or Japan or any other jurisdiction where such an offer or solicitation would require the approval of local authorities or otherwise be unlawful (the “Other Countries”). The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to the corresponding regulations in force in the Other Countries and may not be offered or sold in the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available.
SECO does not intend to register any portion of the offering of the securities referenced in this press release in the United States or to conduct a public offering of the securities in the United States. Any public offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the Company and will contain detailed information about the company and management, as well as financial statements.
This communication does not constitute an offer of the securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.
Contacts:
SECO SpA
Marco Parisi
Head of Investor Relations
Tel. +39 0575 26979
Investor.relations@seco.com
COMMUNITY COMMUNICATIONS ADVISERS
Tel. +39 3357357146
allseco@communitygroup.it
