Operating income CHF 440.3 million, EBITDA CHF 89.0 million and EBIT CHF 41.6 million. - Key figures for 2016 similar to those for 2014 with a comparable exhibition schedule and above the weaker exhibition year of 2015. - - Equity ratio increased to 47.9% and net debt reduced to CHF 69.1 million.
The MCH Group with its head office in Basel, which takes in MCH Messe Basel, MCH Messe Zürich, MCH Beaulieu Lausanne and a number of “live marketing solutions” companies, has once again posted a good result. With operating income of CHF 440.3 million, the consolidated income statement for 2016 shows an EBITDA of CHF 89.0 million (20.2% of operating income), and an EBIT of CHF 41.6 million (9.5%). The group profit is CHF 34.3 million (7.8%).
The consolidated total assets at the end of 2016 were CHF 916.0 million with liabilities of CHF 477.1 million and shareholders' equity of CHF 438.9 million. The equity ratio is 47.9% (44.6%). Investments totalling CHF 14.3 million were made in the reporting year (previous year 17.1 million). The net debt (loans taken up minus cash and cash equivalents) was reduced by CHF 22.8 million to CHF 69.1 million during the reporting year.
Compared with previous years, the key figures are clearly above those for 2015 and of the same order of magnitude as for 2014. Operating income was increased by 5.1% compared with 2015 but is 2.6 % below the figure for the 2014 financial year. The EBITDA is 4.3 % and 1.6 % respectively above the previous two years, and the EBIT 3.7% above 2015 and 2.8% below 2014. The group profit has risen compared with the previous two years by 11.0% and 1.5% respectively.
A number of factors must be borne in mind when drawing comparisons with previous years. One the one hand, 2016 was a year with a busy exhibition schedule compared with the previous years, which included Swissbau, held every two years, and the Ilmac and Holz fairs that take place every three years. On the other hand, a noticeable deterioration came about in the national and international economic setting within which the MCH Group operates. Market consolidations in industries of key importance for the group, such as the watch and jewellery sector and the automotive industry, are having an impact on the exhibition and event business, as is the rapid advance of digitisation.
In the light of the challenging environment, the MCH Group is satisfied with the 2016 financial year. With a view to current and foreseeable market developments, the group thus launched various strategic initiatives in the 2016 business year and some of these have already been implemented. They include an extended range of offerings and an improved international presence in the live marketing solutions field and a further strengthening of the group’s position in the international art market through the development of a new portfolio of regional art fairs. This will not, however, permit market-conditioned declines in the course of business to be offset over the short term. In view of the economic climate and the weak exhibition schedule, a result considerably below that of the previous years thus has to be expected for the current 2017 business year.
Motions to the General Meeting
The Board of Directors of MCH Group Ltd. will submit a proposal to the General Meeting on 26 April 2017 for the payment of a dividend of 5%.
In addition, the Board of Directors will propose to the General Meeting that Marco Gadola, René C. Jäggi, Dr. Karin Lenzlinger Diedenhofen, Dr. Ulrich Vischer and Andreas Widmer be elected for a further term of office of one year as members of the Board of Directors. René C. Jäggi, a member of the Board of Directors since 2003, has announced his resignation from the Board on the occasion of the 2017 General Meeting. The Board of Directors will propose to the General Meeting that Jean-Philippe Rochat be elected to replace him; he has been attending Board meetings in an advisory capacity, as an observer, since 2013.
The Board will similarly propose to the General Meeting that Dr. Ulrich Vischer be confirmed in office as Chairman of the Board of Directors for a further year.