New Risk • Oct 06
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: €590k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 17% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.05% net profit margin). Significant insider selling over the past 3 months (€590k sold). Market cap is less than US$100m (€83.8m market cap, or US$92.0m). New Risk • Oct 03
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.05% Last year net profit margin: 1.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 17% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.05% net profit margin). Market cap is less than US$100m (€83.5m market cap, or US$92.2m). Announcement • May 17
Micropole S.A., Annual General Meeting, Jun 28, 2024 Micropole S.A., Annual General Meeting, Jun 28, 2024. Location: 91 95 rue carnot, levallois perret France New Risk • May 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 73% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Earnings have declined by 9.5% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (€52.1m market cap, or US$56.0m). New Risk • Apr 30
New major risk - Revenue and earnings growth Earnings have declined by 16% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (14% average weekly change). Earnings have declined by 16% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (€49.3m market cap, or US$52.9m). New Risk • Apr 28
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (14% average weekly change). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Market cap is less than US$100m (€48.5m market cap, or US$51.9m). Announcement • Mar 27
Miramar Holding SAS made an offer to acquire Micropole S.A. (ENXTPA : ALMIC) from T. Létoffé, C. Poyau, Dorval Asset Management, Nextstage AM and others for €41 million. Miramar Holding SAS made an offer to acquire Micropole S.A. (ENXTPA : ALMIC) from T. Létoffé, C. Poyau, Dorval Asset Management, Nextstage AM and others for €41 million on March 25, 2024. Offer price per share is €1.5. Offer period starts on May 16, 2024 and ends on June 19, 2024. New Risk • Oct 31
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (€25.9m market cap, or US$27.4m). Reported Earnings • Apr 17
Full year 2022 earnings released: EPS: €0.03 (vs €0.099 in FY 2021) Full year 2022 results: EPS: €0.03 (down from €0.099 in FY 2021). Revenue: €135.2m (up 11% from FY 2021). Net income: €887.0k (down 69% from FY 2021). Profit margin: 0.7% (down from 2.4% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. 2 independent directors (4 non-independent directors). Independent Director Sophie Le Tanneur was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Sep 30
First half 2022 earnings released: EPS: €0.03 (vs €0.068 in 1H 2021) First half 2022 results: EPS: €0.03 (down from €0.068 in 1H 2021). Revenue: €65.8m (up 8.9% from 1H 2021). Net income: €937.0k (down 53% from 1H 2021). Profit margin: 1.4% (down from 3.3% in 1H 2021). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. 2 independent directors (4 non-independent directors). Independent Director Sophie Le Tanneur was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Sep 26
First half 2021 earnings released: EPS €0.068 (vs €0.016 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: €60.4m (up 4.6% from 1H 2020). Net income: €1.99m (up 320% from 1H 2020). Profit margin: 3.3% (up from 0.8% in 1H 2020). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • May 05
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: €111.0m (down 3.7% from FY 2019). Net income: €252.0k (down 89% from FY 2019). Profit margin: 0.2% (down from 2.0% in FY 2019). The decrease in margin was driven by lower revenue. Is New 90 Day High Low • Dec 23
New 90-day high: €1.26 The company is up 7.0% from its price of €1.18 on 24 September 2020. The French market is up 14% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is up 5.0% over the same period. Is New 90 Day High Low • Oct 27
New 90-day low: €1.06 The company is down 3.0% from its price of €1.09 on 29 July 2020. The French market is flat over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 6.0% over the same period. Reported Earnings • Sep 28
First half earnings released Over the last 12 months the company has reported total profits of €2.30m, up 84% from the prior year. Total revenue was €117.1m over the last 12 months, up 5.8% from the prior year.