"By applying a development model based on forward-looking activities, margin-based steering and rigorous management, LNE has continued to grow and is reporting a clear increase in profitability in 2019: operating income before profit-sharing has reached the historic rate of more than 15 % of market sales."the group says.
In 2019, merchant revenue recorded an increase of 2.5 % on a like-for-like basis (excluding GMED) thanks in particular to the development of tests on medical devices (+500 k€ vs. 2018), on digital and artificial intelligence (+150 k€), as well as to major long-term contracts, particularly in the field of road safety (+340 k€).
Operating income before profit-sharing reached €6.9m, an increase of €2.9m compared to 2018 (+72.5 %). In addition, a very virtuous effect of the strategy deployed should be emphasized: the contribution of profits from the commercial sector (€5.0m) to public sector funding to the tune of €1.2m, making it possible to strengthen research activities, particularly at the European level, where LNE is enjoying great success. Note that the commercial result includes royalties from the GMED for more than €1.1m, confirming the success of the spin-off of this medical device certification activity in mid-2018.
Subsidiaries also growing
GMED reported 2019 revenue growth of 20% in France and 30% in the United States. With 130 employees in France and 50 in Washington, GMED's headcount grew by 20% in 2019.
As the only French laboratory accredited in the photovoltaic field, Certisolis recorded a 50 % growth in its certification activities in 2019, a growth closely linked to the notes issued on the carbon footprint by the CRE.
Benefiting from a solid confidence from its customers, LNE Asia has achieved a very good year in 2019, with a growth of its turnover, and a very positive net result. This was despite the political events that disrupted the business.
These good results have enabled the LNE Group to invest heavily in its development, in equipment and infrastructure, but also in human resources with the recruitment of 44 new employees on permanent contracts, despite a tight job market. They also enable us to pay all employees a profit-sharing scheme that is 50% higher than in 2018, a fair return for the efforts made and the results obtained.
Investments
Investments to modernize benches and infrastructure and drive digital transformation are on the rise (€7.1m in 2019, i.e. +€2m vs. 2018), with the aim of improving customer service, offering performance gains, strengthening research activities and supporting the development of high value-added activities.
"Our growth is settling in for the long term and profitability. The excellent results for 2019 confirm our development model based on forward-looking activities, margin-based management and cost control. They allow us to increase our investments so that our clients can benefit from even better quality of service and delivery times in 2020."says Thomas Grenon, LNE's general manager.
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