26 Feb 2016

TenCate records 5% organic revenue growth in 2015

Loek de Vries, President and CEO: “The increased commercial focus, partly on the basis of the innovation and product development of recent years, has resulted in revenue growth

Loek de Vries, President and CEO: “The increased commercial focus, partly on the basis of the innovation and product development of recent years, has resulted in revenue growth. Results were good, although there was not yet a clear economic recovery.

There is a growing need for safety and protection. As a specialist in this area, TenCate can make a significant contribution. We look with confidence to the future with our new owners. The consortium of investors endorses the existing buy & build strategy. This implies that end users, customers and employees will continue to benefit from the long-term horizon of TenCate. The application of new materials with new standards is often accompanied by an extensive introduction phase in close co-operation with end users and partners in the value chain.”


In 2015, TenCate revenues rose organically by 5% to € 1,159 million. Nominal revenue growth was 11%, to which currency effects contributed + 11% and of which divestments had an effect of – 5%. Military protective fabrics, synthetic turf components and systems as well as aerospace composites accounted for most of the revenue growth.

For the whole of 2015, revenues in the defense market represented 13% (2014: 7%) of the total. EBITA before exceptional items rose to € 68.3 million (2014: € 53.3 million). The increase in the EBITA margin to 5.9% (2014: 5.1%) was primarily due to revenue growth and higher efficiencies at TenCate Grass. Excluding exceptional items, the 2015 group net profit was € 41.6 million (2014: € 24.1 million). Reported net profit after exceptional items was € 34.1 million (2014: – € 45.7 million).

Public offer and appropriation of 2015 result

On 20 July 2015, TenCate and Tennessee Acquisition, a consortium of investors led by Gilde Buy Out Partners, published the intention of a public offer for all TenCate shares. As of 10 February 2016, the consortium had acquired 98% of the shares outstanding. The listing of Royal Ten Cate on Euronext Amsterdam will be terminated on 17 March 2016. While applying provision 30.2 of the articles of association, the executive board, with approval of the supervisory board, has decided not to pay a dividend to holders of ordinary shares and add the net profit to the reserves.

In a possible squeeze-out procedure or buy-out procedure, or other measures as specified in the offer memorandum, shareholders who have not tendered their shares under the offer will therefore in principle be paid an amount per share equal to the offer price.


Unless stated otherwise, the amounts mentioned in this press release relate to the result adjusted for exceptional items. These exceptional items are explained on page 4.

Advanced Textiles & Composites

Revenues of the Advanced Textiles & Composites sector grew organically by 8% to € 531.3 million in 2015 (2014: € 435.3 million). EBITA rose to € 32.9 million (2014: € 27.2 million). The EBITA margin of the Advanced Textiles & Composites sector was 6.2%, similar to the previous year. EBITA as a percentage of average net capital employed increased to 11.1% (2014: 9.1%).

The revenue growth in this sector was mainly due to increased sales from the TenCate Defender™ M portfolio and to continued growth in aerospace composites. The demand for industrial protective fabrics fell sharply as a result of circumstances in the oil and gas industry. The growth in revenues of TenCate Advanced Armour at the end of the year was too limited to offset the sharp decline in previous quarters.

Geosynthetics & Grass

Revenues of the Geosynthetics & Grass sector grew organically by 4% to € 611.7 million in 2015 (2014: € 538.7 million). EBITA rose to € 42.6 million (2014: € 23.5 million). The EBITA margin of the Geosynthetics & Grass sector amounted to 7.0% (2014: 4.4%). EBITA as a percentage of average net capital employed rose to 10.0% (2014: 6.1%).

As in the previous year, most of the revenue growth came from synthetic turf components and systems of TenCate Grass. Excluding currency effects, revenues of TenCate Geosynthetics were slightly lower than in the previous year.

The rise in EBITA margin in this sector was mainly due to improved efficiencies through higher utilisation rates at TenCate Grass.

Other activities

At the beginning of 2015, an agreement was reached with US private equity firm Platinum Equity on the sale of TenCate Enbi. The disinvestment of Xennia Technology to Sensient Technologies Corporation followed at the end of the second quarter of 2015. Since these divestments, Other activities relate exclusively to the holding activities.

The change in the result from Other activities reflects in particular the divestment of TenCate Enbi and the result from internal currency hedges.

Other financial information

Exceptional items

The 2015 results were affected by exceptional charges of € 8.9 million (2014: – € 77.1 million) related to costs associated with the public offer for TenCate, restructuring costs at TenCate Advanced Armor USA and a provision for bad debt.

Working capital

Working capital increased in 2015 because of organic revenue growth and the higher US dollar exchange rate to € 316.4 million (2014: € 271.5 million).


In 2015, investments were slightly above the level of depreciation: the investment in fixed assets amounted to € 30.5 million (2014: € 24.8 million), depreciation of fixed assets was € 29.4 million (2014: € 31.3 million). The investments were highest at TenCate Advanced Composites and TenCate Grass, market groups that have shown strong revenue growth.


Mainly due to the divestment of TenCate Enbi and Xennia Technologies, the workforce decreased to 3,652 FTEs at year-end 2015 (2014: 4,345 FTEs).

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