Figeac Aero: new strategic plan unveiled

(CercleFinance.com) - Figeac Aero announced on Wednesday that it had embarked on a new strategic plan designed to significantly accelerate its debt reduction, an announcement that was greeted with little enthusiasm on the Paris stock exchange.


At 9:30 a.m., the aeronautical equipment manufacturer's share price - which has recovered more than 35% over the past three months - was up 0.4% on a slightly lower Paris market (-0.1%).

In a press release, Figeac explains that its plan - dubbed 'Pilot 28' - aims to intensify its commercial, financial and extra-financial performance.

This roadmap, described as 'ambitious', notably targets a new business volume of between 80 and 100 million euros by 2027/2028, the majority of which will come from civil aeronautics.

The Group also anticipates an acceleration in cash generation, forecasting a near-doubling of its free cash flow by 2027/28, to around 50 million euros, while maintaining a current EBITDA margin in excess of 16%.

This development should enable it to accelerate its debt reduction and achieve a financial leverage of between 2x and 2.5x in March 2028, i.e. a net debt of around 200 million euros.

Between now and then, the company's objective is to cross the 4x threshold around March 2025, then 3x around March 2026.

In the shorter term, the company says it is well on the way to meeting the forecasts of its previous "Route 25" strategic plan, and is maintaining its outlook for March 2024 and March 2025.

Operating income and net income should be positive from March 2024 and March 2025 respectively, with ROCE expected to exceed the 10% threshold.

Copyright (c) 2024 CercleFinance.com. All rights reserved.