2007 annual report - Augros Cosmetic Packaging

2007 ANNUAL REPORT
AUGROS COSMETIC PACKAGING
Société anonyme à directoire et conseil de surveillance au capital de 2 283 933 €
Siège social : 165 boulevard de Valmy – 92700 Colombes
592 045 504 RCS Nanterre
AUGROS COSMETIC PACKAGING
Shareholder’s Meeting
May 30, 2008
_________________________________________________________
Report of the Board of Directors
On 2007 accounts
AUGROS COSMETIC PACKAGING
Société Anonyme à Directoire et Conseil de Surveillance
Au capital de 2 283 933 euros
Siège Social : 165 Boulevard de Valmy – 92700 COLOMBES
R.C.S. NANTERRE B 592 045 504
REPORT OF THE BOARD OF DIRECTORS
2007
I. ACTIVITY, RESULTS AND FINANCIAL STATEMENT
KEY FACTS AND ACTIVITY
In 2007 the following events generated a 22,4% drop of sales :
Packaging Division: in 2006, sales were boosted by the production and deliveries of safety
stocks requested by our key customers to secure their business. This special situation ended
in January 2007. From February to December 2007, the consumption of these security
stocks had repercussions on our sales which reached their lowest level between Q3 and Q4
During Q4, sales increased by 2% compared to 4th quarter 2006 (security stock deliveries
excluded).
Decoration Division: in 2007, this activity showed a small growth, in pace with the one of the
world market of about 4 to 5%.
FINANCIAL STATEMENT ANALYSIS
Key financial data:
Debts (more than 1 year – less than 5 years)
Debts (more than 5 years)
Total debts
2007
2006
4 389
4 018
8 407
2007
3 950
5 453
9 403
2006
5 697
2 877
8 574
6 125
5 920
12045
Assets
Accounts receivable
Cash flow
Total short term assets
Short term debts
Trade debt
Factor
Total short term debts
Surplus short term assets/short term debts
3 830
4 175
8 005
4 486
4 428
8 914
569
5 007
PRESENTATION OF INDIVIDUAL ACCOUNTS
2007 Sales reached 17 375 821 € (before taxes) versus 22 392 429 € in 2006.
Operating loss reached 1 907 582 € versus a profit of 122 484 € in 2006.
Financial result showed a loss of 449 238 € versus a positive result of 1 765 647 € in 2006.
Profit before tax reached – 2 356 819 € versus 1 643 163 € in 2006.
Exceptional result is 403 496 € versus 115 705 € in 2006.
Net result reached – 1 953 324€ versus 1 758 868 € in 2006.
PRESENTATION OF CONSOLIDATED ACCOUNTS
Operating profit reached – 1340 K€ versus 963 K€ in 2006.
Cost of financial debt reached 2 024 K€ versus 3 382 K€ in 2006.
Interests charges was - 257 K€ versus – 528 K€.
Other products and operating charges reached 168 K€.
Consolidated net result reached – 1 313 K€
Cash Flow reached - 509 K€.
POST CLOSING EVENTS AND FUTURE PROSPECTS
As of January 15th, 2008, the backlog of the packaging division of Alençon shows a 15%
growth, the Décor Division of Le Theil sur Huisne 24%, both compared to the same period of
2006.
The favourable evolution of the new products entree and backlog, the end of the process of
reduction of the safety stock in the packaging activity, the positive trend of the quotation
requests book and the strength of the luxury market are key elements which reinforce our
growth forecast of sales in 2008.
Last, first equipments of our automation plan for the decoration division which main goal is to
reduce labour costs, will be installed during the end of the first semester of 2008.
INVESTMENTS
During 2007, the Company only made investments requested by the realization of new
contracts at best possible economical conditions.
In Alençon, no investment on capacity is forecasted for the two coming years; only
automation and regular maintenance upgrades will be achieved.
In Le Theil, the automation program under way which will be put in place during the three
coming years, first module in the first semester 2008, for a total amount of 400 K€.
Last, new environmental rules involve a compliance program for this centre which will be put
in place in 2008 and 2009 and will amount 700 K€.
So, the investment plan for 2007 to 2009 will come close to 2 to 2.5% of sales.
CHANGES IN METHODS DURING THE YEAR
Presentation and evaluation methods used to establish our accounts comply with the rules
and are the same than those used on previous years.
The detailed perimeter of the group appears in the notes of balance sheet.
RISKS FACTORS : Financial instruments
The group does not use any financial instrument including risk on assets and liabilities, on its
financial situation and on losses or profits. The group runs no risk on equity (stocks,
OPCVM…)
We are not aware of a risk on currency exchange, social situation, common stocks or any
other risk (legal, country…) as of December 31st, 2007 closing. So, as of today, no risk cover
strategy has been put in place.
R&D EXPENSES
We did not register any R&D expenses in 2007.
II. LEGAL INFORMATION
2.1. AUTHORIZED ASSIGNEES
-
-
Mr Didier BOURGINE is CEO (Président du Directoire) of AUGROS COSMETIC
PACKAGING Company since February 1st, 2002. His appointment has been renewed in
January 2008 for the next six years.
Mr Jacques BOURGINE is Chairman of the board (President du Conseil de Surveillance)
of the company.
Mr Laurent LESANGE was Member of the Board untill January 30th, 2008. His
appointment has not been renewed. Mr Claude PHILIPPON, Director of the Packaging
centre of Alençon has been appointed as Member of the Board.
COMPENSATION OF AUTHORIZED ASSIGNEES
M. Didier BOURGINE, Président du Directoire :
M. Jacques BOURGINE, Président du Conseil :
M. Laurent LESANGE, Membre du Directoire :
200 014 €
48 000 €
2 000 €.
DIRECTOR FEES
The amount of director’s fees has been fixed at 9 000 € and agreed at the last Board
meeting.
2.2. STOCK CAPITAL AND SHARES
As per article L 233-13 of Commercial law and information received based on articles L 2337 and L 233-12, here is the list of the shareholders having more than 1/20, 1/10, 1/5, 1/3, ½
or 2/3 of social capital of voting rights :
-
PARTICIPATIONS ET FINANCIERE BOURGINE Company owns more than half of the
social capital and more than 1/3 of voting rights.
-
M. Jacques BOURGINE owns more than 1/5 of social capital and more than 1/3 of voting
rights.
EVOLUTION OF STOCK EXCHANGE RATE
Augros Cosmetic Packaging stock, (code Sicovam 6178, Euronext Paris), was 2.40 € as of
December 31st, 2007 versus 6.20 € as of December 31st, 2006.
EMPLOYEES CAPITAL SHARING
The company has no saving plan or mutual fund; there is not any employee directly or
indirectly holding shares of the company.
2.3. OTHER INFORMATION
CONTROLED COMPANIES
Further to the Transmission Universelle de Patrimoine (total assignment) done in June 2006
betwwen French companies of the group included in the new perimeter, AUGROS
COSMETIC PACKAGING controls the US company Augros Inc which assets have been
sold.
SUBSIDIARIES AND SHARINGS
Company name
Augros Inc
Shares %
100 %
Capital
26 US$
Activity
Plastic injection
ACQUISITION OF AN INTEREST OR TAKE OVER DURING THE FISCAL YEAR
None
NON DEDUCTIBLE EXPENSES
No deductible expenses reached 56 648 € and the relative tax would have been 18 883 €.
RESULTS – APPROPRIATIONS / DIVIDENDS
2007 result, i-e – 1 953 324 € will be assigned as follows :
- whole amount as a « carried forward » item.
There have been no dividends payments during the past three years.
Year
Total dividends
2004
2005
2006
0
0
0
Dividend per share
0
0
0
Tax credit
per share
Income for tax
0
0
0
0
0
0
III. SOCIAL, ENVIRONMENTAL AND OTHER INFORMATIONS
PREVENTIVE POLICY ON TECHNOLOGICAL ACCIDENT RISKS
The Company appointed a manager in charge of environmental security and has a « public
liability » insurance policy with COVEA RISK company.
LEGAL PROCEDURES INFORMATION
To our knowledge there is no legal procedure or extraordinary event in the companies of the
group. There is no lawsuit, dispute or arbitration able to have effect on the financial situation
of the company.
ENVIRONMENTAL AND SOCIAL INFORMATION
To our knowledge, there is no environmental element able to have effect on the results of the
company.
On social field, there is no risk able to have effect on the results of the company.
WORKS COUNCIL
Works council agreed with the management of the company during year 2007.
INDIVIDUAL RIGHT TO TRAINING
Employees have an individual right to training, as per Labour legislation, and are personally
informed of the procedures in place to use this right.
EMPLOYEES INFORMATION
As of December 31st, 2007 :
France
229
USA
0
AUDITOR FEES
The auditor fees amount (before taxes) paid in 2007 are :
- cabinet AUDITOR :
- cabinet AD CONSEILS :
30 K€,
30 K€.
There has been no independent expert work requested by the Auditors.
AGREEMENTS RELATIVE TO ARTICLES L.225-86 et L.225-90 OF COMMERCIAL LAW
The auditors have been duly informed of these agreements and have established the
corresponding report.
RESULTS OF THE LAST FIVE FISCAL YEARS
As per article R 225-102 of Commercial law, the table of results of the last five fiscal years is
attached to this document.
Fait à Colombes
Le 14 Avril 2008
LE DIRECTOIRE
Consolidated accounts as of December 31, 2007
I. Consolidated balance sheet
(In € thousands)
Assets
Non current assets
Intangible assets
Goodwill
Tangible assets
Non current financial securities
Deferred tax assets
Assets held for sale
Current assets
Inventories
Accounts receivable
Current income tax assets
Current financial securities
Cash and cash equivalents
Total assets
Liabilities
Shareholder's equity
Capital stock
Additional paid-in capital
Acquired shares
Retained earnings
Net income
Minority interests
Non current liabilities
Financial debts (short term)
Deferred tax liabilities
Provisions
Other non current liabilities
Liabilities held for sale
Current liabilities
Financial debts (short term)
Current income tax liabilities
Accounts payable
Provisions
Other current liabilities
Total liabilities
Notes
(Note 4.1.1)
12/31/2007
6 422
442
12/31/2006
8 095
489
(Note 4.1.2)
(Note 4.1.3)
(Note 4.1.4)
5 043
207
731
(Note 4.2.1)
(Note 4.2.2)
(Note 4.2.3)
10 542
1 524
5 358
482
6 412
215
747
232
14 519
1 876
5 908
796
3 178
16 964
5 939
22 614
(Note 4.2.4)
Notes
(Note 4.3.1)
(Note 4.3.2)
(Note 4.3.1)
12/31/2007
-543
2 284
3 959
-68
-5 405
-1 313
12/31/2006
689
2 284
3 959
-68
-10 182
4 696
8 111
7 281
11 391
9 727
449
380
9 396
2 001
132
6 935
723
709
232
10 534
2 189
579
7 349
329
16 964
417
22 614
II. Consolidated income statement
(In € thousands)
Notes
Sales
Other operating income
Cost of sales
Changes in inventory
Personnel costs
External charges
Taxes
Net provisions for depreciation of currents assets
Net provisions for depreciation
Other operating income and expenses
Current operating income
Other operating income and expenses
Operating income
Financial result
Income tax
Impairment of goodwill
Net income before stopped or sold activities income
12/31/2007
(Note 4.4.1)
(Note 4.5)
(Note 4.6)
12/31/2006
17 376
0
-4 984
-327
-7 754
-3 971
-609
-1 441
-79
450
-1 340
168
-1 172
-124
-16
22 392
96
-7 119
-70
-8 206
-4 622
-397
-1 528
-32
449
963
2 809
3 772
1 702
747
-1 313
6 221
-1 525
Net income from stopped or sold activities
Net income
Group share
Minority interests
Earnings per share, group share : basic (in €)
Earnings per share, group share : diluted (in €)
-1 313
-1 313
4 696
4 696
-0,92
-0,90
3,23
3,19
III. Consolidated cash flow statement
(In € thousands)
12/31/2007
Net income
- depreciation, amortization and other
- deferred taxes
- fluctuation in fair-value for long-term financial debts
- spreading on lease-back's gain
- net gains or loss on investments
Gross cash flow
12/31/2006
-1 313
4 696
1 639
16
-160
-418
-274
-509
2 359
747
-569
7 233
- Change in inventories
- Change in trade receivables and related accounts
- Change in trade payables and related accounts
Change in working capital and requirements for operations
351
1 095
-1 059
386
-123
Net cash provided by operating activities
- Acquisition of assets (tangible or intangible)
- Sales of fixed assets
- Changes in investments and other non-current assets
Net cash flow provided by investing activities
-201
4 136
3 913
7 848
15 081
-170
8
-162
- Issurance of new shares
- Reimbursement of financial debts
- Other financial operations (change)
Net cash flow from financing activities
-3 918
-2 572
Fluctuations in cash and cash equivalents position
Initial cash and cash equivalents position
Year-end cash and cash equivalents position
-2 572
0
-2 857
5 939
3 082
11 163
-5 224
5 939
IV. Consolidated shareholder’s equity
(In € thousands)
Capital
As of December 31, 2005
Change in capital
Change in scope of consolidation
Acquisition or sale of acquired shares
Net income appropriation
Net income for the period
Distributions done by the
consolidating company
Translation adjustments
Errors adjustments
Goodwill change on shareholder's
equity
Other movements
As of December 31, 2006
2 284
Paid in
capital
3 959
Consolidate
Net Income
d reserves
-2 297
-7 940
Translation
difference
Total equity
0
-3 994
0
19
19
0
4 696
4 696
2 284
3 959
26
10
0
26
10
-7 940
-10 182
0
-68
689
7 940
4 696
0
-68
-68
Situation as of December 31, 2007
Capital
Paid in
capital
Consolidated
Net income
reserves
Translation
difference
Acquired
shares
2 284
3 959
-10 182
4 696
0
Change in capital
Change in scope of consolidation
Acquisition or sale of acquired shares
Net income appropriation
4 696
-4 696
Net income for the period
-1 313
Distributions done by the
consolidating company
Translation adjustments
-39
Errors adjustments
121
Goodwill change on shareholder's
equity
Other movements
As of December 31, 2007
2 284
3 959
-5 404
-1 313
0
NB : the amount appearing in "errors corrected" mainly concerns leasing and financial rental treatments.
As of December 31, 2006
-68
Total equity
689
0
0
0
-1 313
0
-39
121
-68
0
0
-543
Auditor
AD Conseils
25/27, rue Montorgueil
Immeuble Le Cèdre
25 avenue de l'Europe
92310 - SEVRES
75001 – PARIS
AUGROS C.P.
RAPPORT DES COMMISSAIRES AUX COMPTES
SUR LES COMPTES CONSOLIDES
DE L’EXERCICE 2007
Comptes consolidés au 31 décembre 2007
AUGROS C.P.
165, Boulevard de Valmy – 92700 COLOMBES
Ce rapport contient 18 pages
Auditor
25-27, rue Montorgueil
75001 – PARIS
AD Conseils
Immeuble Le Cèdre
25 avenue de l'Europe
92310 – SEVRES
Mesdames, Messieurs les actionnaires,
En exécution de la mission qui nous a été confiée par votre assemblée générale, nous avons
procédé au contrôle des comptes consolidés de la société AUGROS CP. relatifs à l'exercice
clos le 31 décembre 2007, tels qu'ils sont joints au présent rapport.
Les comptes consolidés ont été arrêtés par votre directoire. Il nous appartient, sur la base de
notre audit, d'exprimer une opinion sur ces comptes.
I.
Opinion sur les comptes consolidés
Nous avons effectué notre audit selon les normes professionnelles applicables en France ;
ces normes requièrent la mise en oeuvre de diligences permettant d'obtenir l'assurance
raisonnable que les comptes consolidés ne comportent pas d'anomalies significatives.Un
audit consiste à examiner, par sondages, les éléments probants justifiant les données
contenues dans ces comptes. Il consiste également à apprécier les principes comptables
suivis et les estimations significatives retenues pour l'arrêté des comptes et à apprécier leur
présentation d'ensemble. Nous estimons que nos contrôles fournissent une base raisonnable
à l'opinion exprimée ci-après.
Nous certifions que les comptes consolidés de l'exercice sont, au regard du référentiel IFRS
tel qu'adopté dans l'Union européenne, réguliers et sincères et donnent une image fidèle du
patrimoine, de la situation financière, ainsi que du résultat de l'ensemble constitué par les
personnes et entités comprises dans la consolidation.
II.
Justification des appréciations
En application des dispositions de l'article L.823-9 du Code de commerce relatives à la
justification de nos appréciations, nous portons à votre connaissance les éléments suivants :
La note « Dettes financières » expose l’incidence de la prise en compte du plan d’étalement
des dettes par le jugement du tribunal ayant validé le plan de continuation de la société.
L’étalement des échéances sur dix ans entraîne la prise en compte d’un produit financier lié
à l’actualisation de cette dette à un taux de 6% majoré de la variation du taux OAT 10 ans
d'un exercice à l'autre.
Les appréciations ainsi portées s'inscrivent dans le cadre de notre démarche d'audit des
comptes consolidés, pris dans leur ensemble, et ont donc contribué à la formation de notre
opinion exprimée dans la première partie de ce rapport.
III.
Vérification spécifique
Nous avons également procédé, conformément aux normes professionnelles applicables en
France, à la vérification des informations relatives au groupe données dans le rapport de
gestion.
Nous n’avons pas d’observation à formuler sur leur sincérité et leur concordance avec les
comptes consolidés.
Paris et Sèvres, le 14 mai 2008
Les Commissaires aux Comptes
Auditor
Bruno KNEZ
AD Conseils
Stéphane FERTELLE
FREE TRANSLATION
AUDITORS REPORT ON CONSOLIDATED ACCOUNTS
AS OF DECEMBER 31, 2007
We have audited the 2007 consolidated accounts of ACP.
Here is our opinion on these accounts:
1/ We have made our audit as per the French professional rules which request several control
proceedings to be assured that there is no significant anomaly. An audit consists in checking the
accounts data and the applied method.
We assume that our controls allow us to express as follow:
We certify that the 2007 consolidated accounts are, in compliance with IFRS European applicable
rules, proper and sincere and give a correct image of the assets, the financial situation and the results
of the consolidated companies.
2/ In compliance with article L 823-9 of Commercial law regarding the justifications of our opinion, we
inform you that:
The note relative to “financial debts” explains the impact of the debt reimbursement schedule
approved by the Tribunal de Commerce. This 10 years schedule (starting September 2006) requires a
“financial profit ” due to the actualization of the debt at 6% rate + OAT 10 years variation from one
year to the next .
These appreciations were part of our audit and allowed us to express our favourable opinion of the
consolidated accounts as above mentioned.
3/ We also audited, as per French professional rules, the information regarding the group contained in
the Report of the Board of Directors.
We have no remark regarding their sincerity and concordance with the consolidated accounts.