Financial summary *
- Total 2018 revenues of EUR 208.4 million, down 11.9% (2017: EUR 236.5 million), now composed solely of Proton Therapy and Other Accelerators. The decrease was predominantly due to a slower PT market. Other Accelerators had a 33% increase in equipment sales, boosted by a record order intake.
- Equipment and service backlog of EUR 955 million, comprising an equipment backlog for Proton Therapy and Other Accelerators of EUR 278 million at full year 2018 including upgrades and services backlog of EUR 677 million.
- Full year REBIT amounted to EUR 0.9 million vs a loss of EUR 17.2 million for the previous year. On a proforma basis including Dosimetry numbers, REBIT for 2018 would have amounted to EUR 5.4 million, largely ahead of the break-even guidance that had been announced over the year. This strong improvement was largely driven by a record order intake in Other Accelerators, excellent performance in service and a reduction in operating expenses as part of the ongoing cost cutting initiative.
- Full year REBIT margin of 0.4% versus -7.3% in the prior year (2.1% on a proforma basis vs -4% LY).
- Dosimetry (discontinued operation) net profit of EUR 3.2 million, up 29% (2017: EUR 2.5 million), driven by strong cost control and halting of depreciation in accordance with IFRS 5.
- The Company moved into profit at both REBIT and Net Income at the Group level in the second half compared with the first half of 2018.
- Total Group loss of EUR 4.4 million, representing an 89% improvement versus PY (2017: EUR – 39.2 million), driven by the Group wide programme to reduce costs and the absence of exceptional items.
Net debt position of EUR -47.1 million (including cash position of Dosimetry for EUR 2.3 million) at the end of 2018 compared to EUR -15.5 million at the end of December 2017, driven for around half by temporary working capital requirements and for half by a lease facility for IBA’s new building. The Group has sufficient credit lines from its banks to finance its cash flow requirements. Moreover, the improved 2018 financial results also allow the Group to meet the bank covenants on its credit lines.
- Order intake of seven rooms comprising seven Proteus®ONE* solutions sold in the UK, Italy, China, Singapore and Belgium, equating to 58% share of the overall market.
- Currently 21 projects have been financially activated and 37 rooms are under development, comprising 14 Proteus®ONE and 7 Proteus®PLUS*.
- The service business continued to grow, with 29 centers under operation at the end of December 2018. Six IBA proton therapy centers became operational during the period: Toyohashi, Japan; Sapporo, Japan; Caen, France; Newport, UK; Groningen, Netherlands; and Chennai, India at the start of 2019.
- Based on current activated contracts, 50 or more centers are expected to be under operation by 2023.
- Significant progress towards sustained profitability through a company-wide focus on operating expenses and cost-efficiency measures.
- Opening of a new factory at IBA’s headquarters in Louvain-La-Neuve to assist in the efficient production of IBA’s technology and contribute to the overall reduction of costs.
- Market authorization received from the Brazilian Health Regulatory Agency (ANVISA) for a Proteus®ONE single-room solution during the period, expanding global reach of proton therapy.
Positive developments reinforcing the growth potential for proton therapy include:
- Evidence generation through an increasing body of publications presenting the benefits of proton therapy for various indications.
- On-going use and validation of the model-based approach at the University Medical Center Groningen (UMCG) that show positive early results. An increasing number of institutions in Europe, North America and Asia are showing interest in this model.
- New treatment techniques such as ARC and FLASH demonstrate significant potential patient benefits illustrated by the first irradiation of a Spot Scanning Proton Arc (SPArc) plan at the Beaumont Health Proton Therapy in Michigan and the first Flash irradiation in an IBA gantry treatment room at the University Medical Centre Groningen (UMCG) in The Netherlands.
- Continued commitment to develop clinically relevant proton therapy treatment innovations to patients with the launch of the Victoria Advisory Committee, a consortium of worldwide radiation therapy experts to help define the future of Proton Therapy care, at the American Society for Radiation Oncology (ASTRO) in October.
- Hosting of the 8th Annual Proteus® User Meeting in Miami providing a platform for open dialogue, technical and clinical discussions, collaboration and real-time feedback from the world’s largest and most experienced proton therapy community, with more than 165 participants representing 40 sites in 17 countries.