Annual report 2001 - GL events

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b - Operating profit
Expressed as a percentage of net sales, operating profit
reaches 7.25% in 2001, compared to 8.74% in 2000.
The 2001 operating profit is affected by the following
two elements :
- Organizational, venue management : further to the
additional percentage (a final 100 %) brought forward to
the group’s share holding of Secil company which manages
the Convention Center of Lyon and the transfer of
ownership of the building of the city of Lyon, the payment
made by the owner which used to be in the way of
distribution of dividends, is now made in the form of
rent wich has a 1.1 m€ impact on the operating charges ;
- Economic, short-term rental of structures : the
slowdown of the rotation rate of the structures invested
for the Sydney Olympic Games, has for effect an
operation loss of 1.5 m€. The actions launched in term of
logisitics as well as in commercial operations should
guarantee a more balanced situation starting 2002.
In M€ 2000 2001
Opearting profit Operating profit of Total
of other subsidiaries acquired companies (1)
Net sales 214.1 221.3 13.7 235.0
Operating profit 18.7 15.5 1.5 17.0
% of net sales 8.74 % 7.04 % 10.6 % 7.25 %
(1) Owen Brown, Package Organisation and its subsidiaries CEE, Centre Infobatir and Norexpo.
Concerning the companies acquired in 2001 and included in the consolidated accounts during the course of the second
semester, their operating profit comes to 10.6 % confirming Générale Location’s will to seek only relutive acquisitions.
The operating profits by sector of activity for the past five years can be presented as follows (in m€) :
1997 1998 1999 2000 2001
Space & Decoration 2.9 3.2 4.5 5.8 5.3
Structures & Grandstands 0.8 1.0 0.5 3.3 2.4
Furniture 1.5 1.9 1.6 2.5 2.3
Technology services 0.9 1.1 1.7 1.0 0.9
System 0.2 0.4 0.3 0.9 1.3
Other services 0.2 0.3 0.3 0.4 0.5
Foreign subsidiaries 0.8 0.4 0.7 1.5 1.8
Total Provision of services 7.3 8.4 9.5 15.2 14.5
Venue management 0.7 0.4 0.6 1.6 0.5
Holding 1.9 2.0 2.0 1.9 2.1
TOTAL 9.9 10.8 12.1 18.7 17.0
c - Net financial charge and profit before tax and exceptional items
The net financial charge for the period amounts to 2 651 K€
compared to 1 221 K€ in 2000. This increase is due to a
moderate indebtedness increased in 2001 considering
the operations of external growth, the tax payment on
the capital gain of Paris expo and a modification of
working capital requirement due to the seasonal aspect.
Profit before tax and exceptional items is as follows :
In K€ 2001 2000
Net sales 235 043 214 083
Income 14 391 17 492
% 6.12 % 8.17 %