Groupe Gorge is becoming a strong force in the 3D Printing industry. The industrial group founded in 1990, based in France, is operating in smart safety systems, protection in nuclear environments, industrial projects and services and 3D Printing. The Group is listed on Euronext Paris, with a market capitalisation of $330M. It’s a mid-sized family business, majority owned by the Gorge family, and led by Raphael Gorge, son of Jean-Pierre Gorge who started the group as Finuchem in 1990.
Groupe Gorge 3D Printing segment started in 2013 with the acquisition of Phidias, renamed Prodways, and grew further with the acquisition of Deltamed in 2014, Initial, Norge Systems and Exeltec in 2015.
Groupe Gorge doubled its 3D Printing sales in Q1/16
Groupe Gorgé’s consolidated revenue amounted to €60 million ($68M) in Q1 2016, compared to €53 million ($60M) in 2015 (+13.6%) driven by the good performance across all divisions. In the first quarter of 2016, the 3D Printing segment doubled its sales from €2.9M ($3.2M) to €5.9M ($6.6M), representing now 10% of the total sales of the group. At comparable scope, growth was strong at 30%. The order backlog at end March 2016 was doubled its March 2015 level, and order intake multiplied by 3 in the first three months of 2016 compared to the same period in 2015.
Positive outlook for 2016
Going forward the Group is optimistic on its overall performance in all four business segments, reiterating its sales forecast revenue for 2016 at €280M ($314M). In the 3D Printing division, the good level of the order backlog at March 31, 2016 (€4.5 M; $5M) leads the Management to expect continued significant revenue growth in a more mature 3D printing market. The Group considers that it has a well positioned offering, centered on professional industrial 3D printing, used for rapid manufacturing and not just for prototyping. The numerous development milestones achieved during 2015 (acquisition of INITIAL, Norge Systems and Exceltec, technological partnership with the Hunan Farsoon Company, acquisition of a stake in Varia 3D) should allow the Group to continue its growth and achieve a monthly operating balance during the year. In 2015, the operating income was negative, due to the growth in sales and marketing expenses (hiring, participation in trade shows), hirings and a considerably higher research and development effort compared to 2014 (22 people were affected to R&D at end 2015).
In 2015, Groupe Gorge’s 3D Printing revenues stood at €18M ($20M). With the continuous growth expected by the Management in 2016, the group is well positioned to become a leading force in 3D Printing. The Group has a strong balance sheet with net debt at less than 2 times the EBITDA of 2015. To reserve all its financing capacity for investments and growth, the Board of Directors will propose to the next Annual General Meeting of Shareholders not to distribute a dividend with respect of 2015.
