LOUVAIN-LA-NEUVE, BELGIUM, 15 March 2010 – IBA (Ion Beam Applications SA) has reported today its consolidated results for the financial year ended December 31st, 2009.

In line with its profit warning issued February 19th, 2010, the company reports a loss exceeding EUR 12 million for the year 2009. This loss results from one-off charges on two projects with strong R&D content.

Due to the exceptional nature of these charges and the change in scope during the previous year following the acquisition of the French company CIS Bio International, the results must be analyzed as follows:

Sales show a growth of 8.0% and have reached EUR 359.2 million. At constant scope and rate, revenues would have been down 6.8% compared with 2008, the growth recorded in the European pharmaceutical sector being more than offset by:

  • Decrease in revenues in the USA because of the global economic context.
  • Decrease in revenues in the equipment segment because of lack of orders in proton therapy in 2008 as well as weak order intake for other accelerators during the first half of 2009.

Recurring operating result amounts to EUR 7.3 million, which is a 32.0% decrease compared with 2008 due to the impact of part of the aforementioned one-off charges for EUR 2.8 million. Without these charges, the result would have been in line with last year's result despite very difficult economic conditions.

The financial year ends with a net loss of EUR 12.3 million explained by the following items recorded below the recurring result:

  • Non-recurring charges and products including over EUR 9 million in charges resulting from the reassessment of probable completion time for these projects with high technological content.
  • Financial charges up EUR 2.5 million mainly due to the reassessment of pension obligations added to IBA following the acquisition of CIS Bio International at the end of the first half of 2008.
  • The net tax charges amount to EUR 4.8 million and consist mainly of deferred tax assets movements (non-cash).

As a result, the company will not be able to distribute dividends in 2010 for the 2009 financial year. This does not however imply any change in the company's dividend distribution policy and the company intends to start distributing dividends again as soon as possible.

The second half of 2009 and the first months of 2010 give a promising view of the future:

In the second half, the company saw a revival in order intake for equipments, which had sharply slowed down in late 2008 and early 2009. To date, the backlog exceeds EUR 200 million.

A net debt of EUR 17.1 million but a current gross positive cash of EUR 17.6 million. The decrease in net cash of EUR 34.9 million compared with the net positive position of EUR 17.8 million at end 2008 is due to investments linked mainly to the pharmaceutical activity for EUR 31.7 million. These investments relate mainly to the refurbishment of the Saclay production site (France) whose building works are nearing completion as well as the preparation for the launch of new proprietary molecules.

Operating cash flow has greatly improved during the second half of the year, mainly thanks to proton therapy projects.

The company has, amongst other things, thanks to a long-term loan from the European Investment Bank, credit lines up to EUR 100 million, of which less than a quarter has been used up to now.