Fayat Group posts strong financial results

The Fayat Group has posted strong financial results.
Finance & Funding / February 18, 2020 1 minute 30 seconds Read
By MJ Woof
The Fayat Group reports strong performance for 2019

The Fayat Group says that its strong operational and financial performance in 2019 has reinforced its position as France’s leading independent construction group and a worldwide leader in road equipment.

The Fayat Group’s strong operational and financial performance in 2019 reinforced its position as the leading independent construction group in France, and a worldwide leader in road equipment.

In 2019, the Fayat Group achieved a turnover of €4.6 billion, an increase of 5.2% from the figures for 2018. The group also announced achieving €1.3 billion in equity including income of €102 million, an increase of 19% from the figures for 2018.

The group now has a payroll of 22,150 staff as well as 208 businesses operating in 170 countries. Some 39% of the workforce, over 8,600 employees, work outside of France. However the group retains its strong position in the French market, where around 61% of the workforce, over 13,500 employees, are based. The Fayat Group has a strong global presence and has seen growth in exports over the last few years, which it says is mainly driven by the Road Equipment business.

The Road Equipment business accounted for 34% of turnover. Europe (apart from France) remains key to the firm’s operations, accounting for 14% of turnover. Meanwhile, the Americas and Middle East/Africa each account for 9% of turnover, with Asia Pacific accounting for 6% of turnover.

The Fayat Group’s strategy is based on the links between its construction and public works contracting operations with the road equipment business lines. The firm says that this link, as both contractor and manufacturer, delivers benefits for its clients.During 2019 the Fayat group also added new businesses to its portfolio. The purchase of 95% of Moulin BTP’s French business lines on 11th February 2019 boosted its public works operations, allowing Razel-Bec to reinforce its network in the Auvergne-Rhône-Alpes region. The acquisition on 30th September 2019 of Fouchard by the Energy Services division, specialised in the design and installation of heating, ventilation and air-conditioning (HVAC) boosts the division’s business, particularly in north-west France. And te acquisition of Arnaudeau CM and Ouest Structures Métalliques in April 2019 has extended the Metal division’s range in terms of products and geographical coverage.

In addition to these acquisitions, the Group set up an investment structure in June 2019 to meet the equity needs of innovative start-ups connected to the Group’s main business lines. Called the Fayat Acceleration Startups (FAST), this operation supports the development of start-ups, meeting their financial needs by acquiring minority shareholdings. The company also offers to share the Fayat Group’s divisions’ business expertise to accelerate the growth of these start-ups.

FAST’s first investment was finalised in August 2019 with TransWay, a startup proposing a solution to meet the needs of local authorities, transport operators, and businesses. This investment has allowed the group to establish a sustainable partnership with its subsidiary, Fareco, specialising in urban and suburban road equipment and solutions.

Following this new financial year, the Fayat Group is continuing its growth both in France and internationally and on its seven business lines. The seven major business lines are: Civil Works, Foundations, Building, Energy Services, Metal, Pressure Vessels and Road Equipment.