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SICIT Group has been awarded as Supplier of the Year at the Global Gypsum Awards 2019 thanks to PlastRetard.
The judging panel and the public agreed to award the multifunctional additive used in the production of plaster and plasterboard, produced for over 25 years by SICIT both in liquid (PlastRetard L) and in powder form (PlastRetard PE).

The criteria were based on innovation, effectiveness, quality and timeliness of the product, as well as its value for money.

The Global Gypsum Awards are assigned every year during the Global Gypsum Conference, now at its nineteenth edition, which closed yesterday in Kuala Lumpur, Malaysia. The Conference is the world’s largest event dedicated to plaster and plasterboard manufacturers and professionals.

For more information on PlastRetard visit the dedicated section: https://www.sicitgroup.com/en/retardants/.

SICIT Group will attend The Leather (Re)Cycling Exhibition that will take place at LineaPelle 97, from 2 to 4 October 2019 at FieraMilano Rho.
An exclusive exhibition, located at the entrance of pavilion 14, which tells the story of the application of the circular economy in the tanning industry. Thanks to the active role played by tanners, one of the most precious materials for the manufacture of fashion and design accessories is produced from the recovery of a waste from the food industry: leather. Thanks to the intervention of companies such as SICIT, potential waste (e.g. trimmings and flesh) are recovered and transformed into high-added-value products for agriculture and the construction industry.

To tell the case of excellence represented by SICIT, Andrea Pavan, Head of Technical Office and Environment of the company, will attend the conference The circularity of the Italian tanning industry – Protagonists talk about it on October 2, from 3.00 to 4.00 pm at pavillion 14 (R).

The meeting will also be an opportunity to reaffirm the strategic importance of the service offered by the company for the Vicenza district of the Chiampo Valley: just a few days ago SICIT was awarded the Technology and Innovation Award at the Green Carpet Fashion Awards 2019 for its commitment to sustainable development models.

SICIT Group approved the Consolidated Half-Yearly Report as at 30 June 2019, prepared in accordance with Italian accounting standards. Despite a six-month period in which the management was deeply committed to the Business Combination between SPAC SprintItaly and SICIT 2000 (completed on May 20) and a less brilliant market context for agricultural products in Asia and the Americas, and in Asia for retardants, the Company’s performance was, once again, positive.

Consolidated Revenues from products and services amounted to €32.5 million, a slight increase (0.1%) compared to the first half of 2018 pro-forma (€32.4 million).

It should also be noted that SICIT Group is implementing those strategic actions aimed at introducing new products and new production technologies (such as, first of all, the production of hair protein hydrolysate and, from the second half of 2020, the significant improvement in the quality of the fat extracted) that should allow to resume its path of strong growth.

Adjusted EBITDA for the first half of 2019 amounted to Euro 12.1 million (39.3% of revenues from products), compared to Euro 12.9 million in the first half of 2018 pro-forma (41.1% of revenues) as a result of: (i) higher selling expenses (due to a slightly different mix of clients); (ii) the inclusion of new professional figures (primarily the CFO), to strengthen the structure and (iii) the strengthening of the Board of Directors and internal control committees, necessary in view of the status of listed company (which has the objective of listing on the Mercato Telematico Azionario organized and managed by Borsa Italiana S.p.A., possibly in the STAR segment) to accelerate the growth in the period 2019-2022.

In the first half of 2019, the Company recorded an Adjusted Net Result of Euro 6.8 million (down 6.3% compared to the first half of 2018 pro-forma – Euro 7.3 million), equal to more than 22% of revenues from products.

Net Cash decreased from Euro 34.7 million as at 31 December 2018 pro-forma to Euro 32.1 million as at 30 June 2019 (-2.6 million), as the operating cash flows generated in the half-year (Euro 6.8 million) were absorbed by the planned investments in plant and equipment (Euro 3 million) and by the ordinary dividends distributed in June 2019 (Euro 6.4 million).

In this regard, it should be noted that in 2019 the Company continued its investments aimed at improving the efficiency of its processes and products as well as expanding its production capacity. Among the most important are the following:

• completion of the Arzignano cogeneration plant, which, when fully operational, is expected to result in energy savings;
• the completion of the new plants for the concentration and centrifugation of defecation gypsum; – completion of the trimmings grinding plant.

Investments are also continuing during the second half of the year, mainly with:

• the expansion of the existing the tank warehouse, to guarantee greater flexibility in responding to clients;
• completion of the hair production plant – which was scheduled to start fully operational in 2020 and was brought forward to 2019 for the test stage
• an animal by-product with very high protein yield (40% compared to an average of 12% of the other by-products currently used) which, when fully operational, will result in an increase in production capacity of 33% (from 12,000 tons/year to 16,000 tons/year of protein hydrolysate produced in the Arzignano plant) and a reduction in the average cost of production of the total protein hydrolysate produced by the Company estimated at about 10%-15%;
• the start of the design stage of the new plant for special products and the execution of the first tests;
• the start of the expansion of the sales offices and quality control laboratory, as well as the construction of the new agronomic laboratories at the Arzignano site.

SICIT Group also intends to continue its strategy of development and growth on foreign markets while maintaining strict control over its core processes. The Company intends to accelerate the growth process also with the opening of a foreign plant, which evaluation is planned to be completed in the second half of 2019 (with the start of work in 2020). Finally, in order to pursue its strategy of developing new products – in close collaboration with its clients, in order to respond adequately to the different needs of the agricultural and industrial companies to which they are dedicated – the Company does not exclude the possibility of potential external acquisitions or partnerships with other industrial groups.

Massimo Neresini, CEO of SICIT Group, commented: “The first half of 2019 marked a watershed for SICIT, as we were successfully engaged in the business combination, in the process of listing on the AIM, as well as and in the implementation of those structural changes necessary to enable us to reach the MTA (possibly the STAR segment), with 3 the approval of the 2019 financial statements. In the past few months we have built a solid foundation that will allow us to continue our important plan of significant growth and internationalization, oriented towards the medium-long term. Overall, in a six-month period characterized also by a less brilliant market context in some regions, revenues have seen a slight growth, reflecting the solid positioning of the Company”.

SICIT Group, in the wake of the initiatives already planned in the strategic development plan, in recent weeks has anticipated the start of production of animal hair protein hydrolysate, which remains in the Vicenza tanning industry for about 10,000 tons/year.
The innovative production process developed by the Company allows to increase production efficiency, improving both the performance (equal to 40% in the case of animal hair, compared to 12% for the other animal by-products currently used) and the operating cost.

The operation, originally planned for 2020, when fully operational will result in a production of about 4,000 additional tons per year of protein hydrolysates, bringing the total produced by SICIT Group to 16,000 tons per year, compared to 12,000 tons per year in 2018 at the Arzignano plant. Overall, the process innovation will allow to increase the production performance by 33% and lower production costs by about 10-15%.

Moreover, thanks to this initiative, the Company expects: i) a characteristic value of the organic nitrogen of the biostimulant increased, which will further qualify the offer of SICIT Group on world agricultural markets; and ii) the evolution of a new plaster retardant industrial product, characterized by a less expensive peptide base, which will open new areas of commercial development that can make a positive contribution in terms of growth in turnover and EBITDA margins.

Massimo Neresini, CEO of SICIT Group, said: “This important process innovation is part of the approved growth business plan. Every year we invest 4% of our revenues in research and development to maintain a top position worldwide and consolidate our market position, thanks to the contribution of cutting-edge plants and laboratories“.

SICIT Group launches a purchase of its own shares programme in execution of the resolution approved by the ordinary Shareholders’ Meeting held on 1 March 2019, as a useful strategic investment opportunity for any purpose permitted by current legislation and, in particular, with the aim of providing the Company with a stock of own shares in view of the possible future incentive plans in favour of employees and/or directors of the Company and/or as payment, also for the exchange of shareholdings with other parties, as part of transactions in the interest of the Company, it being understood that the Company reserves the right to assign the shares in its portfolio for other purposes permitted by current legislation, according to its own interest.

The purchase of shares operations to implement the programme will take place in compliance with the equal treatment of shareholders, according to and within the operating limits provided by the above-mentioned resolution, by art. 5 of the European regulation no. 596/2014 (the so-called MAR) and, in general, by the applicable general and sectoral legislation, specifically:

• the purchases will concern a maximum total of 300,000 ordinary shares of the Company, with no indication of their nominal value, for a maximum equivalent of € 3,000,000;
• the purchases will be made at a price that is not higher than the highest between the price of the last independent transaction and the price of the highest current independent offer on the trading venues where the purchase is made, it being understood that the unit price may not be lower by a minimum of 20% and higher by a maximum of 10% compared to the arithmetic average of the official prices recorded by the SICIT Group S.p.A. share in the 10 trading days prior to each individual purchase transaction;
• purchases will be made for volumes not exceeding 25% of the average daily volume of SICIT Group S.p.A. shares on the trading venue where the purchase is made, calculated on the basis of the average daily volume of trading in the 20 trading days prior to the date of purchase;
• the purchase programme will start on 1 July 2019 and last until 1 September 2020.

SICIT Group announces that today the merger by absorption of SICIT 2000 into SprintItaly has become effective.
As of today, the ordinary shares and warrants of the Company – which has taken the registered name “SICIT Group S.p.A.” – are traded on the AIM Italia.

• Today’s listing on the Italian Stock Exchange will allow to increase the visibility on world markets and to complete the medium-long term industrial project in high growth sectors.
• Completion of the 100-million-euro business combination with SprintItaly aimed at accelerating SICIT’s strategic development plan in Italy and abroad, boosting existing plants and R&D laboratory, as well as building a new production plant in South America.
• Thanks to its resilience and international leadership position, favoured by a “green” business model based on the circular economy, SICIT expects to grow at a high rate in the coming years, so as to continue to create value for investors.

May 20 is also the date:

• of settlement of the withdrawal rights exercised by the shareholders of SpI in relation to the Merger (and of the related option and pre-emption right);
• of effectiveness of the extraordinary dividend in favour of the ordinary and special shareholders of SpI (before the Merger);
• of start of the grouping of the ordinary and special shares of SpI (before the Merger).

SICIT Group’s listing on the Italian Stock Exchange is the result of the business combination – carried out through the Merger – with SpI, the Italian SPAC created by the mix of the distinctive and complementary characteristics of its founders, Fineurop S.p.A., Gerardo Braggiotti, Matteo Carlotti and Francesco Pintucci, who boast managerial success stories and more than twenty years of experience in extraordinary finance and private equity transactions.

A 100-million-euro operation aimed at accelerating the Company’s strategic development plan in Italy and abroad, boosting the existing plants in Arzignano (VI) and Chiampo (VI), the R&D laboratory and building a new production plant in South America. The project has been completed so quickly as SICIT is an Italian SME of excellence with a solid international market position in high growth sectors, thus generating strong profitability. Moreover, the company’s management – which remains in the capital and takes part in the new development stage – is highly skilled and has a clear long-term strategic vision.

Massimo Neresini, CEO of SICIT, said: “Today is a day of fundamental importance for SICIT and for the entire tanning district of Vicenza. The completion of the business combination with SprintItaly and the listing take place in a strategic key, to accelerate and strengthen the long-term growth path undertaken. From now on we will be even more visible on the international markets, being able to develop in a few years the important industrial plan approved”.

Gerardo Braggiotti, Chairman of SprintItaly’s Board of Directors, commented: “The full completion of the operation in just five months witnesses the confidence that our investors placed in a company that combines all the characteristics we were looking for: innovation, solid market positioning and high growth potential. A new development stage is starting today, which – we are sure – will allow to create value in the future for all shareholders“.

SICIT appointed Giampaolo Simionati as the company’s new Chief Financial Officer (CFO).

Giampaolo has more than 15 years of experience in finance and accounting, as well as in consulting and auditing. Giampaolo began his professional experience as a junior analyst in an Italian consulting boutique and then – for a short period – in some multinational groups (ITW and P&G). After graduating in Economics, in 2006 he joined the audit division of KPMG Italy, working for national and multinational clients in the industrial, retail and fashion sectors. Since 2009 he has been part of the Deal Advisory’s central team of excellence where he was promoted manager and then senior manager. He has been involved in both buy-side and sell-side financial due diligence for numerous PE funds and corporate clients, as well as restructuring and re-financing projects.

Massimo Neresini, CEO of SICIT, said: “We are experiencing a period of significant acceleration of our business that will allow us to further improve our leadership position in the market. Giampaolo’s proven experience and professionalism in economic-financial analysis and auditing make him the ideal figure to support us along this path of growth, particularly with regard to relations with our investors”.

 

The Board of Directors of SICIT 2000 approved the draft of the financial statements as at 31 December 2018, prepared in accordance with Italian accounting principles. On 8 April, the draft financial statements as at 31 December 2018 of SICIT Chemitech S.p.A. were also approved – the company will be acquired by SICIT in accordance with the agreements related to the Business Combination and before it becomes effective. The figures approved today are in line with the ones as at 30 September 2018, approved in the context of the Business Combination.

On the basis of the 2018 financial statements draft approved, below the following consolidated figures:

• Revenues: approx. € 55.1 million
• EBITDA: approx. € 22.7 million
• Net profit: approx. € 13.4 million
• Net Cash: approx. € 14.5 million
• Shareholders’ equity: approx. € 69.9 million

The 2018 revenues increase in biostimulants and retardants for the gypsum industry exceeded the contraction in the turnover of fuel from animal fats, due to the reduction in the selling price during the year.
EBITDA as a percentage of revenues in 2018 was excellent at around 41.0%, while net profit as a percentage of revenues in 2018 was around 24.1% – already net of part of the non-recurring costs incurred for the Business Combination operation with SprintItaly.

The Net Cash position at December 31, 2018 was close to € 15 million, despite:

• the significant investments financed during the year
• the distribution in July 2018 of an extraordinary dividend of approximately € 6.7 million.

Massimo Neresini, CEO of SICIT, commented: “In an intense year, during which the company had to focus also on the Business Combination transaction that will lead us to the Stock Exchange, SICIT has been able to maintain a positive performance, while planning major investments aimed at containing the volatility of the price of fuel from animal fats. The consolidated results show the correctness of the strategic choices made and the solid growth path of SICIT“.

In light of the results for the year, as well as in line with the dividends distributed by SICIT in previous years and with the dividend policy announced as part of the Business Combination, also in view of the timing of its execution, the Board of Directors approved the proposal to the Shareholders’ Meeting to distribute to the shareholders of the company resulting from the Business Combination an overall amount equal to 50% of the consolidated net profit of 2018.

The ordinary dividend per share of the Combined Entity is currently estimated at approximately € 0.34 based on the expected number of shares that will make up the share capital of the Combined Entity upon payment of the dividend, i.e. following the Business Combination and the conversion of the first tranche of special shares.

UNIC – Concerie Italiane, the most important and organised association in the tanning sector worldwide, through its subsidiary Lineapelle S.r.l., acquired a stake in SprintItaly, which it will incorporate through a merger SICIT, with consequent admission of the latter to the multilateral trading system AIM Italia of Borsa Italiana. The stake held by the UNIC-Lineapelle Group should be around 2% of the voting share capital of the post-merger company.

Today, UNIC represents about 1,200 companies, with a total of about 18,000 employees and a turnover of about 5 billion Euros, 76% of which for export. The Italian tanning industry is an historical and consolidated example of circular economy, as it removes a large quantity of waste from the slaughtering industry (animal remains), significantly reducing the environmental impact, creating an high-added product with technical characteristics and performance of the highest level, maintained over time.

Gianni Russo, Chairman of UNIC – Concerie Italiane and Lineapelle, said: “The acquisition of a stake in SICIT is a proof of our confidence in the future of the sector and is fully in line with the strategic goals of the association, authoritative and attentive partner of the Italian tanneries in their path towards a continuous development of sustainability, with increasingly investments“.

Massimo Neresini, CEO of SICIT, added: “The investment of UNIC – Concerie Italiane represents an important endorsement of SICIT’s green business model, which makes us proud and can only reassure the financial markets about the quality of their investment. Moreover, this decision also proves the quality of the work we have done over the years, allowing us to further strengthen our presence on international markets“.