Delta Drone continues its development while having

0

AF 2021: delta-drone continues its development
while have many valuable assets
reinforcement his financial situation

March 31, 2022 at 8am
Key points

  • Change of accounting framework with the transition to IFRS
  • Turnover up by +18.2% and strong improvement in net income
  • The sale of the Israeli subsidiary ParaZero bring A6 million dollars in cash to Delta Drone International which becomes autonomous to finance its development in the southern hemisphere
  • The agreement with volatus Aerospace is still being finalized, it will allow the Group to change dimension
  • Launch of a cost reduction plan to aim for operating breakeven in 2023, financed by a deduction of €1 million from Ornan
  • Consolidation of short-term equities to promote a new stock market dynamic
Ink FISCAL YEAR 2019
AF 2020 AF 2020 FISCAL YEAR 2021
French GAAP IFRS IFRS
Turnover 15,987 13,417 13,417 15,865
Other products of the activity 1,561 3,865 3,865 1,278
Purchases and inventory changes 8,051 8,305 8,305 7,182
Personnel costs 13,985 12,726 12,726 15,718
Taxes 397 423 423 374
Other income/expenses from current operations 29 126 126
EBITDA (4,914) (4,298) (4,298) (6,131)
Net depreciation 3,665 3,398 1,618 2,065
Net provisions and impairments (139) (139) 294
CURRENT OPERATING INCOME (8,579) (7,558) (5,778) (8,491)
Other operating income and expenses (1,356) (2,093) (2,842) (1,023)
OPERATING INCOME (9,935) (9,651) (8,619) (9,514)
Cost of net financial debt (147) (184)
Other financial income and expenses 513 (582) 163 5,334
RESULT BEFORE TAXES (9,422) (10,233) (8,604) (4,371)
Tax expense (194) (121) (122) (24)
PQ result of associates (464) (507) (507) (28)
NET INCOME FROM CONSOLIDATED COMPANIES (10,080) (10,862) (9,233) (4,423)
Income from sold companies (919)
NR – share attributable to non-controlling interests (541) (165) 723 (995)
NET INCOME GROUP SHARE (9,539) (10,697) (9,856) (4,347)
EQUITY & ASSIMILATION 6,012 10,356 13,757 22,349
CASH AND EQUIVALENTS 1,817 4,732 4,732 1,343

After a year 2020 strongly impacted by the effects of the health crisis, the Group has managed to return to a level of activity comparable to that of 2019, even if the crisis persists and continues to disrupt activity.

With regard to the formation of the operating result, its apparent stability indeed reflects significant major changes. The increase in personnel costs is directly linked to the winning of several private security contracts, which will be the breeding ground for our dronification strategy in the sector. Conversely, there is a decrease in purchases and changes in inventories as well as depreciation charges. Finally, the decline in other business income, including in particular fixed production for the period, illustrates the end of the R&D program dedicated to the development of professional solutions ISS Spotter (security) and Countbot (inventory), now operational and in phase business start-up.

The beginning of 2022 was marked by the winning of several contracts in the field of events, signed by ATM Group Sécurité (subsidiary of Delta Drone Human Tech), which consist of a mixed offer associating security agents and ISS system Spotter, which fully validates the relevance of the strategy.

At the same time, in partnership with Geodis, the first Countbot missions are carried out to the satisfaction of the first customers, who see the system as a major innovation, a source of better management of their stocks under favorable economic conditions.

If we consider the Australian subsidiary Delta Drone International, the cash sale for 6 million Australian dollars (about 4 million euros) of the Israeli company ParaZero completes the process of creating a hub focused on the southern hemisphere. and the mining sector. Delta Drone International is now firmly established in two major mining countries, South Africa and Australia, and has the necessary resources to self-finance its development.

The adoption of IFRS standards allows the Group to recognize the “fair value” of its investments, housed within the subsidiary UDT. This investment policy aimed at creating an ecosystem within the Group, generating numerous industrial synergies, has been crowned with success since the portfolio globally reports a turnover of more than €5 million in the income statement.

Finally, the loss for the year was reduced to 4.3 million euros, halved compared to the loss of the previous year.

Please note that the Group’s detailed accounts are available in French and English on the Group’s website (www.deltadrone.com).

The final terms of the agreement with the Canadian group volatus Aerospace is still under discussion

By means of a press release dated March 3, 2022, the Delta Drone and Volatus Aerospace groups announced the signing of an agreement, subject to several conditions precedent, the purpose of which was to together constitute a world leader in the sector, present on all continents. .

As noted in the statement, the deal required approval from the French Ministry of Economy, under the 2019 law on investments by foreign companies in French companies. The investigation of the file is still in progress, without the precise date of the response from the ministry being known.
In addition, the deal also requires the approval of minority shareholders of Australian subsidiary Delta Drone International, as the company is listed on the ASX Sydney Stock Exchange. This approval will be submitted to shareholders at a general meeting to be held in May.

However, in the meantime the Delta Drone and Volatus Aerospace teams have started working on joint projects:

  • for North America, the commercial development of the solutions offered by Delta Drone,
  • for Delta Drone sites, products and systems marketed by Volatus Aeropace.

A plan to reduce operating expenses by €2 million was immediately launched, financed by one €tranche of 1 million Ornan

Given the evolution of the Delta Drone group and its ambitions for the years to come, the need to continue efforts to rationalize operating expenses remains crucial. Thus, to achieve the objective of achieving operating breakeven next year, Delta Drone decides to launch at the beginning of the 2nd quarter a plan to reduce operating expenses, which represents potential savings in a full year. around €2 million.

In accordance with the authorization given to the Board of Directors by the Extraordinary General Meeting of Shareholders of Delta Drone (the “Company”) of April 24, 2020 by virtue of its sixth resolution, the Board of Directors of April 14,and October 2020:

  • approved the principle of issuing 2,500 subscription warrants per tranche (theSlice Mandates“), giving access to 2,500 bonds redeemable in cash and/or new shares (the “ORNAN“) accompanied by stock warrants (the “Mandates“) upon exercise, to the investment fund YA II PN, LTD (the “Investor”), a fund managed by the American management company Yorkville Advisors, representing financing of up to €25 million in cumulative nominal value; and
  • gave power to the Chairman and Chief Executive Officer to decide to launch this operation, to set the final conditions, to issue the Tranche BSAs and to draw down the attached ORNAN BSA tranches.

In accordance with the sub-delegation of authority conferred on him by the Board of Directors on April 28, 2020, the Chief Executive Officer decided today to draw 1 tranche of ORNAN with BSA attached.

The main characteristics of the Tranche BSAs, ORNANs and BSAs (the terms and conditions of which are available in detail on the Company’s website (www.deltadrone.com) under the “Investors” tab) were presented in a press release dated October 14, 2020.

In accordance with the financing agreement entered into on October 14, 2020 with the Investor, 1 tranche of ORNAN with BSA attached for a nominal value of €1 million was drawn down today, corresponding to the issue of 100 ORNAN with 714,285,714 BSA attached.

The reverse stock split will be implemented in April

In accordance with the 3rd resolution voted at the General Meeting of December 27, 2021, the Board of Directors decided to implement in April the consolidation of the shares making up its share capital at the rate of 10,000 old shares against 1 new share.

The objective of this merger is to support a new stock market dynamic for the company as well as to reduce the volatility of the Delta Drone share price, induced by the low level of its current value. This operation will not affect the overall value of the delta Drone shares held in the portfolio by the shareholders, with the exception of the broken shares.

The details and the exact timing of the operation will be the subject of a specific press release.

Outlook

Delta Drone continues its construction in a still emerging sector, marked by a multitude of sometimes unrealistic, often peremptory communications and announcements. Rather than suggesting that “the drone can do everything”, the Group is committed to anchoring its strategy on solid and reasonable foundations, in direct contact with the needs of its customers, following a process of progressive integration of technology. in professional use, respecting in all respects the regulations and rules for the safety of persons and property.

After 10 years of existence, Delta Drone is in the process of building with its partner Volatus Aerospace an unrivaled set in the sector, present all over the world and with an extremely wide range of services and products. The combination of French technology and North American commercial know-how will undoubtedly be a winning combination to accelerate the development of turnover and achieve breakeven in terms of EBITDA. Achieving this objective obviously relies on the rationalization of operating expenses initiated in 2022; so that it can be reached in 2023.

On a like-for-like basis, Delta Drone should see sustained revenue growth this year, in line with the commercial development of the professional solutions ISS Spotter (security) and Countbot (inventory) and the growing success of the new private security service. offerings.

About DeltaDrone: Delta Drone Group is a recognized international player in the field of civilian drones for professional use. It develops a range of professional solutions based on drone technology as well as all associated services that form a complete value chain.
The Delta Drone share is listed on the Euronext Growth Paris market – ISIN Code: FR0011522168
BSA Y – ISIN coded: FR 0013400991
www.deltadrone.com

Investor contacts: Press contacts:

Share.

Comments are closed.