Ama Company: One year after its listing, AMA Corporation sanctioned for its lack of visibility

(BFM Bourse) – The rising star of the Guillemot galaxy is fading. Nearly a year after the IPO, AMA Corporation must already make drastic cuts to maintain its financial balance and restart halted growth. The 2022 targets announced during the IPO are moving sharply away for the group, causing a sharp drop in Euronext Growth …

Times are tough for AMA Corporation. Introduced in July 2021 at a price of 6.60 euros, the company founded by the Guillemot family – the same one that heads the video game publisher Ubisoft – crashes 32% to record a historic low of 1.26 euros around 1 p.m. 11:00 am.

The business of the AMA Corporation Group is far from in line with the ambitions presented by the company when it was listed last year. Still, it was a confident company that presented itself at Euronext Growth. “We love the stock market for it,” slipped Christian Guillemot, president of AMA (and also co-founder of Ubisoft) during a press release dedicated to the IPO. Management expected to repeat Ubisoft’s brilliant course in both activity and the stock market.

A company with strong growth ambitions

AMA Corporation was founded in 2004 and originated in the production and publishing of games for mobile phones. Nothing surprising considering the DNA of the Guillemot family. A few years and a partnership with giant Google later, the company took a different path. It now meets remote assistance, inspection and training needs thanks to an assisted reality platform. Under the brand XpertEyethe assisted reality platform developed by the AMA covers a wide range of utilities such as remote diagnostics, inspection, scheduling, workflow management, remote training and telemedicine.

The Breton company’s solution allows users to improve their productivity, maximize their available time, limit their travel with associated costs and CO2 footprints, simplify knowledge transfer and reduce their intervention. AMA’s technology offers its users secure hands-free remote assistance with a stable connection even in difficult places. AMA’s assisted reality platform, XpertEye, has already been implemented in more than 100 countries. Another point in common with the other companies in the Guillemot galaxy … “Implementing our business with fast installation abroad is part of our brand”, claims Christian Guillemot.

The € 36 million fundraising was to enable the company to accelerate its growth and maintain its technological lead over its competitors, the second occupation of AMA Corporation. The company had strong growth ambitions based on a 264% increase in sales between 2019 and 2020. The health crisis, which led to a restriction in travel, is obviously not independent of this acceleration.

Lack of visibility

For the financial years 2021 and 2022, the AMA’s target was to achieve a turnover of over 15 million euros (compared to 6.4 million euros in 2020, ie an annual growth of 140% respectively) and 32 million euros (ie an annual growth of 110 % compared to 2021). And the account is not there. Last year, the company missed its target by achieving a turnover of 6.6 million euros, far from the 15 million promised at the listing. In October last year, the company put the market on the scent, warning that it was revising its revenue assumptions for 2021 and 2022. The sanction was immediate with a 51.54% drop in the stock on October 29, 2021.

AMA Corporation was unable to restart the machine during the first three months of the current financial year, the company was still penalized by the development below its expectations for the market for assisted reality solutions. The AMA thus achieved an unaudited consolidated revenue of 1.1 million euros for the first quarter of 2022. This is 50% less than in the first three months of 2021 and 20% lower than the sales observed at the end of 2021. The AMA explains that it was faced with “technological challenges related to the integration and interoperability of its new applications within customer information systems and additional technological additions.”

One year after the first steps in the stock market, the picture has therefore become darker to such an extent that the group “adapts its development strategy to the development of its market.” In a less polished language, AMA Corporation has to make deep cuts to stay afloat.

Removal of posts

The AMA today announces a global austerity plan, which includes in particular the elimination of approximately 70 positions worldwide, including approximately 60 positions in France. This program will thus enable the AMA to “gain flexibility and thus have the resources adapted to the resumption of growth in its market and pursue its long-term ambition to become a leader in assisted reality solutions for professionals in the field.”, Explains the company. in today’s press release.

The company is repeating its goals, which were announced last October. It expects a return to growth from the second half of 2022 – against sustained growth previously announced – “driven by the roll-out of its industrial-scale solutions and the building of its networks and commercial partnerships.”

The company hopes to save the furniture and its medium-term goals. At the time of listing, the AMA explained that it wanted to achieve a turnover of more than 175 million euros for the financial year ending 31 December 2025. The company still hopes to reach financial equilibrium by 2023 and generate an adjusted Ebitda above 20% before December 31, 2025 … AMA Corporation is likely to provide new indications during the presentation of its first half financial statements scheduled for July 29.

Sabrina Sadgui

© 2022 BFM Bourse

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