Industrial services firm Altrad hails ‘robust’ year
Industrial services giant Altrad said that it was optimistic about its future prospects after a “robust” financial performance in 2020.
The Montpellier-based group, which provides services for the oil, gas, and petrochemicals sectors, said that it had managed to maintain profitability despite intense pressure from the pandemic.
Over the year revenue dropped a sixth, from €3.1bn to €2.5bn, while earnings slipped back from €462m to €360m.
Altrad said that the sudden spread of the virus back in March had forced it to cancel or postpone a number of its projects.
A wider shutdown in construction products hit its sales and hire division, while closures also knocked its manufacturing division.
Despite the financial pressure, the firm managed to reduce its net debt to €394m, down from €510m at the end of last year.
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Looking ahead, the firm said that its order book was “healthy”, with a number of contract wins such as a €350m deal with EDF.
Chief executive Ran Oren said: “We are delighted to deliver such a robust set of full-year results, especially considering the challenging market conditions faced throughout the second half of the fiscal year.
“The sudden impact of the pandemic across our markets and sectors resulted in the postponement or cancellation to numerous projects, as clients responded to an uncertain outlook.
“The European lockdowns also impacted our manufacturing and hire & sales division. This led to a sharp decline in revenue and resulted in margin pressure.
“The fact that we were able to maintain our profitability and gross margin despite these material headwinds shows the genuine resilience of our business, and the effectiveness of the measures taken to respond to these pressures.”