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Investor News

S&P Revises Outlook on Selecta to Stable from Negative

On 8 July 2019, ratings agency S&P Global published an updated report on Selecta Group and revised its outlook rating on the business to Stable from Negative. Please find below S&P’s press release which can also be accessed at this link

 

Selecta Group Outlook Revised To Stable From Negative On Improved Operating Performance; 'B' Rating Affirmed

  • 08-Jul-2019
  • Selecta Group B.V. (Selecta) has been focusing on integrating acquisitions and expanding its product offering over the past 18 months.
  • We believe that Selecta is better placed to grow its revenue base and improve its margins on the back of its greater route density and more efficient vending machine park.
  • In addition, we expect the capital intensity of the group's business to fall, which will support ongoing free operating cash generation over time.
  • We are therefore revising the outlook to stable from negative, and affirming our 'B' long-term issuer credit rating on Selecta.
  • The stable outlook reflects our expectation that revenue and margin growth, coupled with lower capital expenditure, will result in sustainable positive free operating cash generation.

LONDON (S&P Global Ratings) July 8, 2019--S&P Global Ratings today took the rating actions listed above. The outlook revision to stable reflects our view that Selecta is now in a better position to grow its revenue base and improve its margins. Following the completion of the acquisitions of Argenta and Express Vending in 2018, Selecta has been focusing its efforts on integrating the acquisitions and investing in its business in order to improve EBITDA margins and cash generation.

Over the past two years, Selecta has added significantly to its product offering and increased its route density. The continued refurbishment of the group's machine park to enable cashless payments and promotional offers and match the product offering to local demand should enable the group to generate higher sales per machine in the medium term. In addition, we consider that the micro markets--self-service kiosks in private spaces--offered by Argenta and Express Vending and premium-grade automated coffee machines in partnership with Lavazza and Starbucks provide a broader offering in both public and private vending. We believe this can support revenue growth over the next 12-24 months.

Furthermore, additional route density, alongside investments in telemetry, should enable Selecta to improve its EBITDA margins, as it will be better able to reduce machine downtime and improve the route efficiency of the stocking and maintenance operations required to service the group's machine park.

In addition, we take a favorable view of the relatively modest capital expenditure (capex) requirements associated with the premium coffee machines and micro markets, which we expect to account for an increasing share of the group's revenues in the years to come. We expect this to result in a fall in capex from about 9% of total sales in financial 2018 to around 7.5% in financial 2020. While Selecta will remain among the most capital-intensive services businesses that we rate, we expect that, on completion of the integration and restructuring programs in the U.K. and France, the business should be able to generate free operating cash flow (FOCF) of more than €20 million on a sustainable basis, which is consistent with the current rating.

The stable outlook reflects our expectation that Selecta will continue to grow both organically and through acquisitions, while improving its margins from levels in financial 2018 thanks to its recent restructuring and investment program, such that S&P Global Ratings-adjusted debt to EBITDA falls below 7x in financial 2020. Our outlook also captures our expectation that the group will generate sustainable positive FOCF on the back of a reduction in capex as a proportion of sales.

We could take a negative rating action if Selecta fails to realize the margin improvements and reduction in capex as a proportion of sales that we expect. Specifically, we could lower the rating if we expected FOCF to remain negative on an ongoing basis.

We see limited upside potential for the rating. Nevertheless, we could consider raising the rating if we observed material outperformance compared with our base case. In particular, this would be demonstrated by the adjusted debt-to-EBITDA ratio falling below 5.0x and a strong commitment from the financial sponsor to maintain leverage metrics at that level.

Related Criteria

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow 7 (495) 783-4009.

Primary Credit Analyst:

Paul O'Reilly, London + 44 20 7176 7087;
paul.oreilly@spglobal.com

Secondary Contact:

Terence O Smiyan, London (44) 20-7176-6304;
terence.smiyan@spglobal.com

Additional Contact:

Industrial Ratings Europe;
Corporate_Admin_London@spglobal.com

Deutsche Bank 23rd Annual European Leveraged Finance Conference 05.06.19

Please find below the Selecta Management presentation from the conference for download:

Selecta Group Q2 FY19 Results

Please find below Selecta Group’s Q2 FY19 noteholder presentation and press release, as well as the financial statements.

A recording of the audio webcast of the noteholder presentation is available here

Credit Agricole High Yield and Leveraged Finance Conference 21.03.19

Please find below the Selecta Management presentation from the conference for download:

Selecta Group Q1 FY19 Results

Please find below Selecta Group’s Q1 FY19 financial statement, press release and noteholder presentation.

A replay of the audio webcast from the Q1 FY19 results is available to view here

Press Release - SELECTA APPOINTS NON-EXECUTIVE DIRECTOR

Steinhausen, Switzerland, January 31, 2019: Selecta AG (“Selecta”), the leading unattended self-service coffee and convenience food provider in Europe, is pleased to announce the appointment of Andy Ransom as Non-Executive Director and Senior Independent Director to the company’s Board with effect from 1 February 2019.

Download the full press release below:

Selecta Group Full Year 2018 Financial Statements

Please find below the Selecta Group B.V. Full Year 2018 Financial Statements for download:

BNP Paribas High Yield Leveraged Finance Conference 17.01.19

Please find below the Selecta Management presentation from the conference for download:

Selecta Group Q4 and Full Year FY17/18 Results

Please find below the Q4 and Full Year FY18 Noteholder presentation for download:

 

Click here to listen to the recording of the presentation. Please note that this recording will be available for 90 days following this call.

Please note that the Full Year audited Selecta Group BV Year-End accounts 2017/18 will be published on this site in the second half of January 2019.

Also find below the Annual Bond Report for 2018. Note this document is password protected, please email investor.info@selecta.com to request access. 

Selecta Group Q4 FY17/18 Results

The Selecta Group Q4 FY17/18 Results call will take place on Wednesday, 12th December 2018 at 12.00 CET.

Please find below the conference details and participant link.

 

Please join the event conference 5-10 minutes prior to the start time. You will be asked to provide the confirmation code, speaker name or the title of your conference.

 

Slide Assist Participant Link:

https://slideassist.webcasts.com/starthere.jsp?ei=1224344

 

Moderator Name:

Corina Maria Caderas

Event Conference Title:

Q4 Selecta Investor Call

Time Zone:

Central European Time - Amsterdam, Berlin, Bern, Rome, Stockholm, Vienna (UTC+01:00)

Start Time/Date:

12:00 Wednesday, December, 12 2018

Duration:

60 minutes

 

Confirmation Code:

7832120

 

Location

Purpose

Phone Type

Phone Number

France, Paris

Participant

Local

+33 (0)1 76 77 22 74

Germany, Frankfurt

Participant

Local

+49 (0)69 2222 13420

Switzerland, Zurich

Participant

Local

+41 (0)44 580 7206

United Kingdom, Local

Participant

Local

+44 (0)330 336 9105

United States, Brooklyn

Participant

Local

+1 929-477-0448

 

Press Release - SELECTA SELLS CUSTOMPACK Ltd

Cham, Switzerland, September 19, 2018. Selecta, a leading European vending and coffee services provider, today announced that it has sold Custompack Ltd formerly known as Chequer Foods Ltd, to PortionPack Europe Group, the European market leader in the field of Portion packed products, via its UK based company Single Source Ltd.

Download the full press release below:

Goldman Sachs EMEA Leveraged Finance Conference 04.09.18

Please find below the Selecta Management presentation from the conference for download:

Selecta Group Q3 FY18 Results

Please find below the Q3 Noteholder presentation and financial statement for download:

Click here to listen to the recording of the presentation. Please note that this recording will only be available up to and including September 28.

Selecta Group Q3 FY17/18 Results

The Selecta Group Q3 FY17/18 Results call will take place on Wednesday, 29th August 2018 at 12.00 CET.

Please find below the conference details and participant link:

 

 

 

Please join the event conference 5-10 minutes prior to the start time. You will be asked to provide the confirmation code, speaker name or the title of your conference.

 

Slide Assist Participant Link:

https://slideassist.webcasts.com/starthere.jsp?ei=1204982

 

 

Moderator Name:

Tanja Merk

Event Conference Title:

Selecta Group Q3 Results

Time Zone:

Central European Time - Amsterdam, Berlin, Bern, Rome, Stockholm, Vienna (UTC+01:00)

Start Time/Date:

12:00 Wednesday, August, 29 2018

Duration:

60 minutes

 

Confirmation Code:

2786959

 

Location

Purpose

Phone Type

Phone Number

France, Paris

Participant

Local

+33 (0)1 76 77 22 74

Germany, Frankfurt

Participant

Local

+49 (0)69 2222 13420

Switzerland, Zurich

Participant

Local

+41 (0)44 580 7206

United Kingdom, Local

Participant

Local

+44 (0)330 336 9105

United States, Brooklyn

Participant

Local

+1 929-477-0448

Press Release - SELECTA GROUP ACQUIRES EXPRESS VENDING

Cham, Switzerland, August 17, 2018: Selecta Group B.V. (“Selecta”) today announces that the company has acquired Express Vending Group Limited (“Express Vending”).

Download the full press release below:

Moody's upgrades Selecta's CFR to B3 from Caa1; outlook stable

London, 21 March 2018 -- Moody's Investors Service, ("Moody's") has today upgraded the corporate family rating (CFR) of Switzerland-based vending machine operator Selecta Group B.V. (Selecta or the company) to B3 from Caa1.

Download full report:

SELECTA APPOINTS NEW CHIEF FINANCIAL OFFICER

Cham, Switzerland, March 14, 2018: Selecta Group B.V. (“Selecta”), a European leader in unattended self-serve coffee and convenience food, today announced that Hugues Rougier will resign from his role as Chief Financial Officer at his own request to pursue other opportunities outside of Selecta. The Board and Mr. Rougier have agreed that this change will come into effect on March 31, 2018.

Following this, Selecta is delighted to announce that Gabriel Pirona will succeed Hugues Rougier and will commence his role as the new CFO on April 1, 2018. Mr. Pirona is a multi-lingual senior finance leader, who has worked as CFO at Photo-Me, a UK publicly listed company, during the past three years. He has a proven track record in successfully delivering business transformation and creating value through growth. He furthermore has significant experiences in M&A and a strong commercial background in businesses that demonstrate many similarities with Selecta.

David Flochel, CEO of Selecta, said: “On behalf of the Board of Directors and the Management, I want to thank Hugues for his significant contributions to Selecta, particularly during the last year of transforming the company.”

David Hamill, Executive Chairman of Selecta, said: “We are pleased to welcome Gabriel Pirona to Selecta. I’m sure that his experience and capabilities will strongly contribute to the growth journey that we are on.”

###

Media contacts

Selecta Group

Kerstin Müller
Corporate Communication Manager
Mobile: +41 79 331 48 30
Email: kerstin.mueller@selecta.com

SELECTA GROUP HAS SOLD SELECTA FINLAND

Cham, Switzerland, March 15, 2018. Selecta AG (“Selecta”), a European leader in unattended self-serve coffee and convenience food, today announced that it has sold Selecta Finland to JOBmeal.  Selecta Finland employs about 95 people and generated net sales of approximately €13.7 million in the business year 2016/17. The sale has been subject to approval from the European Commission (EC). Selecta will continue to operate in Finland through its Pelican Rouge entity in Finland (http://www.pelicanrouge.com/fi).

 

The financial conditions of the transaction have not been disclosed.

 

Selecta Group Q2 FY17/18 Results

 

Noteholder Presentation and Financial Statement  Q2 FY18

Selecta Group Q2 FY18 Noteholder presentation and Financial Statement for download:


 

Selecta Group Q1 FY17/18 Results

Please find below the Q1 noteholder presentation and financial statement for download:

 


 

Press Release

Selecta Acquires Gruppo Argenta

Selecta Refinancing Documents

Financial Reports

View Selecta’s financial reports, including our latest performance report and annual review. The report will help you to better understand Selecta from both a financial and business standpoint.

Selecta-Group-Q4-2017-Noteholder-Presentation.pdf

Selecta-Group-BV-consolidated-FS-2017.pdf

Selecta-Group-Q3-2017-Noteholder-Presentation

Selecta-Group-Q3-2017-Financial-Report.pdf

Selecta Group Q2 2017 Financial Report

Selecta Group Q2 2017 Noteholder Presentation

Corporate Ratings

Standard & Poor’s Rating Service

Corporate Credit Rating: B

Senior Secured Notes: B

Outlook: Stable

Moody’s Investor Services

Corporate family Rating: B3

Senior Secured Notes: B3

Outlook: Stable