Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on KORIAN. We currently have 9 research reports from 1 professional analysts.
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Upbeat FY16 results, strong operating support from acquisitions
20 Mar 17
Korian gained almost 6% yesterday following a robust pace in the FY16 results, coming in line with the consensus and the group’s guidance (September 2016). Sales were up 15.8% on a reported basis, fuelled by acquisitions completed by Korian with a strong contribution from the German Casa Reha. EBITDA leaped by 23.5% (EBITDA margin at 14.1% vs 13.3% in 2015) boosted by c.€12m of non-recurring income (EBITDA margin at 13.7%, i.e. +40bp excluding this one-off). Sales grew by 3.8% lfl, reflecting robust performances across the group’s geographies, particularly outside France (47% of group sales, +6.7% lfl), in Germany (+8.4% lfl, reflecting the ramp-up of new facilities opened and acquired in 2015) and Belgium (+9.1%) both benefiting from increased occupancy in mature facilities. Growth in France (+1.3% lfl) was held up by the rehab clinic business, penalised by a regulatory pricing decrease but slightly offset by a steady nursing home segment. Italy (+1.8% in sales lfl) benefited from the portfolio optimisation measures (exit from four non-performing facilities). The opening of 2,744 new beds along with a favourable pricing environment also contributed to Korian’s robust organic performance. The occupancy rate reached 95% in three out of the four geographies. The group’s EBITDAR margin gained 30bp to 26.7%, fuelled by France (+50bp at 27.2%) which benefited from the synergy gains from the Korian-Medica merger and a steady activity. In Germany, the acquisition of Casa is behind the 59.7% rise in EBITDAR, while the EBITDAR margin stood at 27%, experiencing a drop of 80bp in H1 but the strategic efforts (the 2020 Action Plan) led to an upturn in H2. Italy recorded a 23% EBITDAR margin, flat compared to 2015 (impact of the Brescia facility). Promising 2017 targets with growth to accelerate in H2 The group added 2,744 new beds to the network excluding the additional beds stemming from the Casa Reha acquisition (10,182 beds) which brought the total number of beds to c.72k at the end of 2016. At year end, Korian’s portfolio was made up of 715 facilities (vs 621 at end 2015), including 600 retirement homes. The group confirmed its 2017 targets (+5% in sales, EBITDA margin at 13.7%, flat vs 2016 but in line with the 2020 Plan) on the back of the steady pricing environment in the Senior Business, the ramp-up of new facilities opened in 2016 and to be opened in H2 17 (“greenfield”) and the expected growth in the number of beds (c.2,500 beds to be opened in 2017).
13 residents pass away, victims of flu
09 Jan 17
Korian lost up to 5% this morning after the announcement yesterday that 13 residents of a 110-room Korian retirement-home passed away (average age of 91.5 years-old), all victims of flu. However, six of the 13 victims had been vaccinated against seasonal flu. Six other residents who are showing flu symptoms are still hospitalised, while a seventh resident has been admitted to hospital as a precautionary measure. The immunisation rate within this residential home is a dramatically low 38% (against an average of 80% in the rest of Korian’s retirement homes and the Ehpad network in 2015). In December 2016, a severe outbreak of flu began in France and there have been numerous alerts sent to the public in recent weeks. The Ministry of Health announced it had opened an investigation. Korian’s reputation under pressure This stands as a hard blow for Korian since it raises questions about the quality of care given by the group’s staff and the possible lack of preventive measures taken by the retirement home (hygienic ones in particular) which is crucial for both clients and the brand’s reputation. It also raises questions about Korian’s capacity to cope with risky situations and, in this case, to manage sick and very contagious residents despite the high degree of vulnerability of Korian’s elderly residents. These dead residents may highlight that the staff were too slow in alerting there was a problem when they should have sent the sick residents to hospital or placed them in quarantine to prevent any contagion risk within the retirement home.
Strong organic growth and guidance confirmed
27 Oct 16
Following the unconvincing H1, Korian released a satisfactory Q3 slightly above consensus. It was marked by an organic growth of 4.1% yoy, while the reported growth reached 15.5%. Revenues year-to-date reached €2,224m, mainly growing in Belgium and Germany. In Germany, revenues grew by 66.3% on a reported basis thanks to the integration of Casa Reha, while Belgium saw the integration of Foyer de Lork making reported revenues rise by 12.9%.
Rationalisation already running
31 Mar 16
FY15 sales were up 16.1% (+3.2% pro forma), EBITDAR increased by 11% (-1.3% pro forma), EBITDA by 8.8% (-4.1%). Operating CF fell slightly (-0.8%). Net financial debt reached €1.6bn at 31/12/2015 including €0.6bn related to real estate. The restated debt ratio represented 3.1x EBITDA, well below its ceiling (4.5x).
EBITDA margin warning
12 Feb 16
FY15 sales were up 16.1% (+3.2% pro forma). The FY15 EBITDA margin is expected to be lower than in FY14 (c. -100bp) due to a stricter definition, by the new management of the group, of some non-current items as well as capitalised expenses and lower than expected operating performance in H2.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - EKF Diagnostics - Final results & potential buy back
20 Mar 17
FY16 prelims are slightly ahead of our latest expectations, those having been increased materially over the course of H2’16 as the strength of the recovery in trading became apparent. In order to maximise shareholder value, the directors are currently examining a potential break up of the group. This would also involve a delisting from AIM. A buy back offer at 21.5p would therefore be made to those investors that wish to exit now rather than holding their shares for the two years plus it would likely take to achieve a potentially higher realisation value for the businesses.
Good results, but further restructuring complex for investors
20 Mar 17
EKF Diagnostics FY 2016 results are slightly ahead of expectations, with both higher revenue and better EBITDA. Management has also announced plans to split the company into two separate companies, Point of Care and Laboratory Diagnostics, with the prospect of a delisting to manage the process. The primary metric for valuation of the two businesses is different consequently we believe that the separation is likely to generate significant value. However, in anticipation of the volatility likely given the restructuring announced this morning, despite the strength of the results, we reduce our recommendation to HOLD and maintain our 21p target price.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.