The Board of Directors meeting held by visioconference on 21 April 2020 approved the Company's financial statements and the Consolidated financial statements for the year 2019, according to IFRS International Financial Reporting Standards, after having obtained confirmation from the Auditors that the auditing procedures had been followed and that the Certification Reports are in the process of being issued.

Consolidated turnover for 2019 now mainly composed of the Pumps sector, the other sector concerning the Holding's real estate activity, amounted to €103.7 M against €94.2 M in 2018, increase of 10.1%.

At constant scope and exchange rates, the increase amounted to 6.8%. The new scope integrates the activity of the both Canadian companies COUGAR acquired in September 2019.

The Oil & Gas international activity has increased firstly thanks to the recent Canadian acquisition, the sales rebounds in the North American market and the sales growth in South America, while sales in the Asia Pacific region fell slightly.

The activity of the Food market has increased worldwide and the Industry's one has risen slightly.

The Group's consolidated operating income in 2019 amounted to a profit of €8.6 M against
€7.4 M in 2018. The sustained activity and a better cost control explain this improvement. The contribution of the Pumps Sector was positive at €9.1 M compared to €7.9 M in 2018; the real estate activity of the Holding company made a negative contribution of €0.6 M.

Operating income was positive €8.4 M against €7.3 M in 2018.

Financial income amounted to €2.1 M against €0.6 M in 2018. The improved Income from cash of €0.6 M as well as neutral foreign exchange differences in 2019 (€0.9 M) mainly explained this increase.

In 2019, net consolidated taxes was €1.6 M against €1.7 M in 2018.

The net consolidated operating income in 2019 amounted to a profit of €8.9 M against €6.2 M positive in 2018.

In the end, the net income of Gévelot, the consolidating company, amounted for 2019 to a positive sum of €8.6 M against a profit of €6.0 M in 2018.

Net cash flow from operations was €13.9 M against €9.2 M in 2018. On the one hand this increase is linked to the growth of income and on the other hand to the effects of the first application of IFRS 16 (leases).

The net consolidated financial structure amounted to €148.3 M against €164.0 M in 2018, down by      €15.7 M, mainly due to the acquisition of the Canadian companies and the reorganization of this local activity area, ie €13.7 M, as well as the effects of the first application of IFRS 16 on leases for €1.9 M.

Turnover for 2019 of Gévelot SA, the Group Holding Company, consisting of rents and services, amounted to €0.8 M against €0.6 M in 2018.

The operating result of Gévelot SA was negative € 0.7M, against €0.8M negative in 2018.

The financial result amounted to a profit of €3.1 M in 2019 against €3.3M positive in 2018.

In 2019, it included a dividend of €2.3M (compared to €3.0M in 2018) and a net financial income for €0.6M (€0.4M in 2018), as well as net exchange differences positive of €0.2M (negative €0.1M in 2018).

The extraordinary income excluding allocations / reversals, of provisions net of taxes linked to previous tax audits, was negative by K€ 46 compared to K€ 54  in 2018.

In the absence of  tax, and after K€ 787 in tax savings linked to the tax consolidation scheme, the net corporate income of Gévelot S.A. in 2019 showed a profit of K€ 3 142 against K€ 3 214 positive in 2018.

The Annual General Meeting of Shareholders, hold in closed meeting on Thursday 11 June 2020, will propose the distribution of a decreased dividend, i.e. €1.60 per share against €1.80 the past year.

Strong negative economical effects are expected from the Covid-19 health crisis on the Group's activity and profitability.

This situation will be exacerbated in addition by the recent drop in the barrel price which will have a very significant impact on our Oil & Gas markets. The other markets are also expected to post a clear decline.

Some first adaptation measures (furlough, home working, etc.) have been implemented in all of our sites, both worldwide and in France. Our priority is to ensure the health security of our employees and in general of all stakeholders on our sites.

The financial structure of our group, our capacity to adapt and the efforts of all our employees should enable the Group to cope with the expected difficulties.

In accordance with AMF recommendations, a new communication will be issued in the event of more significant impacts, currently non-measurable.

Finally, the year 2020 should have been marked in June by the bicentennial of our Group. This commemoration is postponed to a time when the general circumstances will be more favorable.

Information available on our website: www.gevelot-sa.fr