Highlights of main consolidated companies

The following notes provide information on other group companies by operating segment, including their financial highlights stated under IFRS, drawn from the respective financial statements.


Within its group, the company acts as parent responsible for centralised activities. It also carries out production activities on the helicopter and small jet market.

MAG is the result of the combination of previous corporate and operating sites that, in line with the group’s organisation, report to two main operating segments, comprised of business lines.

The Aircraft Systems (“ASY”) segment is focused on safety-critical systems, while the Aircraft Services (“ASE”) segment includes the Cabin Comfort Systems (“CCS”) business line, which offers technological/functional cabin comfort systems, and the Aircraft Services (“AS”) business line, which provides a wide range of services for standard aircraft.

The table below breaks down core revenue by business line and operating segments:

[thousands of Euros or percentages] 2019/2020 2018/2019 2017/2018 2016/2017
Flight control systems and mechanical parts 29.885 36.865 26.802 24.429
Landing and other hydraulic systems 17.922 15.883 12.584 12.169
Other products and mechanical processing 1.580 1.470 938 1.212
Hydraulic systems product support 6.907 3.498 4.263 7.339
Engineering 4.171 3.075 4.110 2.714
ASY Total Aircraft Systems 60.465 60.791 48.699 47.864
Interior and non-structural components 3.564 2.155 2.606 2.833
Completion of interiors with the supply of kits 21.091 22.798 15.460 16.435
Total Cabin Comfort Systems 24.656 24.952 18.067 19.268
Overhaul and maintenance of aircraft and parts 13.472 10.420 8.068 9.022
Total Services 13.472 10.420 7.068 9.022
ASE Total Aircraft Services 38.128 35.372 25.135 28.290
Total 98.593 96.163 73.834 76.154

The ASY segment’s revenue for the year ended 30 September 2020 was in line with the previous year, and was among the highest of recent years. This was due to the solid performance of the consolidated lines and the expansion of the production range (M345).

The ASE segment benefited from the solid performance of the CCS business line, which was held back somewhat by the economic context, and to an increase in the AS line as part of its ongoing progress in reducing the work times for aircraft, based on a like-for-like backlog and structure, and the increase in production volumes.

Engineering revenue relates to non-recurring fees for the development of new products and its performance is correlated to project progress. The actual figure for the year, higher than in the previous year, was generated by certain key contracts such as the M345 programme, the FFC VRT-500 programme and the landing gear for a new very light jet. The aim of the group for this business line is to steadily increase the share of non-recurring revenue from customers and reduce the portion of expenses the group incurs.

Additional information in this respect is provided in the section below on development projects, in which the projects managed by the parent, including through its subsidiaries, are described (see DEVELOPMENT OF NEW PRODUCTS).

Overall performance has been positively impacted by volume trends, with gross operating profit substantially stable despite some negative changes to the mix, and projects which are at pre-production or production start-up stage.

Like for the consolidated figures, (see Errore. L’origine riferimento non è stata trovata. for further details), the financial figures and indicators are normalised by eliminating non-recurring or exceptional items which do not relate to operations, as shown in the table below, showing the impact on revenue (“R”), EBITDA and EBIT:

(thousands of Euros) R EBITDA EBIT
Prior year income, grants and other non-operating revenue 266 266 266
Accrual to the product warranty provision - (988) -
Specific write-downs of inventories, other adjustments (592) (905) (905)
Non-recurring health emergency (Covid-19) expense; prior year expense - (540) (540)
Total net non-recurring income/(expense) – R/EBITDA 326 (2.165)
Non-recurring impairment losses on investees (SAT) (1.880)
Non-recurring impairment losses on items of intangible assets (M345) (1.612)
Total net non-recurring income/(expense) – EBIT (4.671)

The normalisation of the aggregates and indicators for the reporting period is shown in the following table:

(thousands of Euros) R EBITDA EBIT
Pre-adjustment 106,008 12,996 4,483
Normalisation items 326 2,167 4,671
Normalised amount 106,334 15,163 9,154

The aggregates and indicators are compared with those of previous years in the following table:

[thousands of Euros or percentages] 2019/20 % diV 2018/19 % diV 2017/18 % diV 2016/17 % diV
TR – Total revenue from core business 98.768 96.163 73.834 76.154
R – Adjusted revenue 106.342 101.932 83.317 80.799
Adjusted EBITDA 15.171 14,3% 12.819 12,6% 6.458 7,8% 5.746 7,1%
Adjusted EBIT 9.162 6,2% 9.702 9,5% 3.162 3,8% 2.586 3,2%
EBT 6.714 4,6% 4.527 4,4% 1.746 2,1% 801 1,0%
Profit for the year 4.816 3,3% 2.483 2,4% 636 0,8% 790 1,0%

The parent’s financial debt is balanced and, overall, considered representative of most group assets:

[in thousands of Euros] 2019/2020 2018/2019 2017/2018 2016/2017
A- NET NON-CURRENT ASSETS 73.827 72.752 68.788 62.767
B- NET CURRENT ASSETS 23.124" 21.345 27.382 39.703
C- POST EMPLOYMENT BENEFITS AND PROVISIONS (8.314)" (9.726) (10.212) (11.421)
D- INVESTED CAPITAL 88.638 84.371 86.069 91.049
E- EQUITY 64.557" 59.725 57.329 56.674
F- NET FINANCIAL DEBT 24.081 24.646 28.740 34.375
G- TOTAL AS IN D 88.638" 84.371 86.069 91.049

Net non-current assets are in line with those of the previous year end, with significant investments (€3,316 thousand in product development and €6,104 thousand in property, plant and equipment).

Investments in new product development were more contained, mainly as a result of the increase in the portion of expenses covered by non-recurring revenue from customers.

The increase in property, plant and equipment includes the upgrade of facilities, particularly the expansion of the main industrial building in Monteprandone.

Net current assets increased slightly on the previous year end (+€1,779 thousand), mainly due to the increase in inventories (+€7,487 thousand). This increase was a result of the precautionary increase in stock levels of some materials to avoid procurement risks in the current economic context.

Closing net financial debt is down slightly (-€565 thousand) on the previous year end.

If the effects of the initial application of IFRS 16 are eliminated, NFD is €1,729 thousand lower than at 30 September 2018, as shown in the following table:

NET FINANCIAL DEBT (without IFRS 16 impact)
[in thousands of Euros] 2018/2019 2018/2019 2018/2018 2016/2017
NFD (post-IFRS 16) 24.081 24.646 28.740 34.375
IFRS 16 impact (1.164) - - -
NFD (pre-IFRS 16) 22.917 24.646 28.740 34.375


Mecaer America manufactures mechanical and hydraulic parts for airplanes and helicopters. Accordingly, it is part of the ASY operating segment.

The production site is located in the aerospace industrial district of Laval (Quebec), and it is specialised in the construction of landing gear and related retraction systems for helicopters and airplanes.

It also provides maintenance and overhaul services (MRO) for components and systems.

Recent years have seen a lengthy start-up phase and development projects for new products. These have required substantial investments, production and industrial activities.

Over the past three years, the group’s strategy for the company focused on the integration of make to design projects, which are characterised by long-term development cycles and have a great potential over the long term, and make to print projects, that suit the specialist skills acquired by Mecaer America, especially in the landing system field, but can be rolled out more rapidly and, therefore, contribute to the achievement of the break even point.

2019/20 performance was in line with the budget, with revenue up some 16% over the previous year, which was also a year of strong growth (+30% over 2017/18).

The main projects in which the company is involved, related to the landing gear for the various Gulfstream aircraft (G4, G5, G650 and G7), are progressing well. The production rates reported at the beginning of the year were largely maintained, although there was some order rescheduling due to the health emergency. Landing gear for the Bell (B429) and Leonardo (AW109 and AW139M) aircraft and the MRO activities the company performs as an authorised repair station (mainly for Leonardo’s US-based related company) account for the remainder of this company’s production mix.

The operating profit for the year benefited from the volume effect, returning to the group’s usual levels.

The Canadian company partially impaired the remaining unamortised development costs (CAD2 million) related to the Bell 429 landing gear system project, which has a residual amount at the reporting date approximating CAD940 thousand.

The impairment was recognised in light of the most up-to-date information on the future market outlook for these systems. The project is for retractable landing gear for Bell Textron’s B429 aircraft, which comes equipped with fixed gear.

The B429 equipped with hydraulic gear has received various certifications (TC and ANAC) but the FAA certification was issued with a weight limitation (3,100 Kg MTOW), reducing its possibility of use and sale on the US market. The impairment testing was based on revenue projections that do not envisage the authorisation of the 500 pound (227 kg) increase in the take off weight by the US certification service.

The company’s engineering expertise in the retractable landing system segment, based on the use of hydraulic and electromechanical technologies, represents a pillar for the group. The company therefore often operates as a sub-supplier of the parent, MAG, as part of its strong integration with the technical unit of its operating segment (ASY). Mecaer America is a sub-supplier of the parent in several development projects for new products in its field.

Under the group’s model, the parent, MAG, is usually the customer’s prime contractor and holds the intellectual property rights related to the projects in which the group is involved. Accordingly, the group companies participate in the production stage of make to design projects as licensees of the group’s know-how.

Therefore, 2019/20 ended with an improved operating profit compared to the previous year and a net financial position of CAD1,726 thousand.

The company’s current order backlog adequately covers the budgets for 2020/21, despite some rescheduling arranged by customers. The business plan through 2023/24 plots a course of strong growth for the Canadian company.

The following tables respectively show the normalisation items for the aggregates and indicators and the historical normalised figures. Reference should be made to the information provided for the group (see Errore. L’origine riferimento non è stata trovata. PERFORMANCE) for comments on the non-recurring or exceptional items which do not relate to operations:

(thousands of Canadian dollars) R EBITDA EBIT
Prior year income, grants and other non-operating revenue 698 698 398
Total net non-recurring income R – EBITDA 698 698 698
Non-recurring impairment losses on items of intangible assets (B429) (2,000)
Total net non-recurring expense R – EBIT (1,602)

The normalisation of the aggregates and indicators for the reporting period is shown in the following table:

Pre-adjustment 53,115 5,663 1,250
Normalisation items (698) (698) 1,602
Normalised amount 52,417 4,965 2,852
[thousands of Canadian dollars or percentages] 2019/2020 % of D 2018/2019 % of D 2017/18 % of D 2016/17 % of D
TR – Total revenue from core business 51.274 44.182 33.955 39.205
R – Adjusted revenue 52.417 47.020 37.116 39.575
Adjusted EBITDA 4.965 9,3% 3.976 8,5% 2.057 5,5% 4.413 11,4%
Adjusted EBIT 2.553 4,8% 1.055 2,2% (451) (1,2)% 2.010 5,2%
EBT 526 1,0% 879 1,9% 173 0,5% 1.404 3,6%
Profit for the year 3.205 6,0% 4.454 9,5% 2.452 6,6% 2.807 7,3%

As the profitability conditions seen over the last five-year period remain, and as the budget and business plan estimates are confirmed by the company’s actual results, the company recognised deferred tax assets of CAD2,679 thousand in its financial statements at 30 September 2020. These are calculated on the prior year tax losses that may be offset against future taxable income.


This company’s mission is to promote, create and manage airfields, helicopter landing pads and airports within the province of Ascoli Piceno and Italy. Accordingly, it focuses on developing communications in its local area. In terms of the strategic areas identified by the group, the company falls under the ASE segment.  

Since its inception, the company has implemented an investment plan with the aim of building an airfield within the Monteprandone Centobuchi industrial complex. Though not exclusive, its main purpose would be for the group’s industrial activities, while also available for a range of potential uses as part of an aerospace cluster that could involve industrial and institutional operators, with a positive impact on the entire area.

Generally, the project relating to SAT in the context of the MAG Group can be traced to certain main business lines.

The first derives from the group’s interest in having an airfield in order to expand the Cabin Comfort Systems business line,which belongs to the Aircraft Services operating segment, to the fixed-wing sector.

The second business line is related to the possibility that, together with the helipad, the airfield is selected as the civil protection operating base. Indeed, the geographical location, technical characteristics and services of the “Tronto” airfield make a suitable strategic point for fire prevention and protection services in the Marche Region.

These activities are carried out by the Arma dei Carabinieri (Carabinieri) and the Vigili del Fuoco (the Fire Brigade), which took over the duties of the disbanded Corpo Forestale (Forest Department), using a fleet of aircraft owned by the Italian Republic which include Canadair CL-415 aircraft and helicopters.

Cross-border cooperation agreements between countries in the Mediterranean area (e.g., Slovenia, Croatia and Greece) have also been signed in recent years. The agreements provide for reciprocal assistance in fire management and prevention and in this regard the location of the Tronto airfield would be strategic as well.

In the background, there is the project’s potential contribution to the improvement of transport in the local area, which has always been part of MAG Group’s intentions and vision.

Together with MAG’s commitment to the development of innovative technologies used in air transport, this aspect speaks to that social dimension of the group’s business project often presented to the public administration bodies interested in enhancing the area.

Indeed, local entities and institutions demonstrated their interest in these objectives when, at the time of the project’s launch, the Ascoli Piceno municipal authorities acquired a non-controlling but highly symbolic interest in SAT (4.74% at 30 September 2020).

Unfortunately, in subsequent years, the investment plan was fully funded by MAG via regular capital injections and the Ascoli Piceno municipal authorities had to commence procedures to dispose of the investment in 2019 as part of a spending review.

The situation changed in 2019/20, with the health emergency causing a general slowdown in air transport, with flow on effects on orders and backlogs of the main fixed-wing aircraft manufacturers. As it is linked to private transport, the business jet market was impacted to a lesser extent, though sector analysts point to a contraction in production and sales of new aircraft which is projected to last for at least two years.

The business plan has been updated in light of this situation, extending it to 2025, and specifically in relation to those business lines involved in the SAT project and the exploitation of the airfield in the medium term, in order to analyse the impacts of the economic situation on group strategies and to assess the recoverability of the investment.

In brief, the plan approved by SAT’s board of directors on 21 December 2020 provides for:

  • the completion of the ancillary works necessary to complete the airfield, estimated at some €0.2 million, by 2022; these works do not require further building or town planning authorisations;
  • the commencement of the infrastructure’s operation, again in 2022, in its current 1,499 metre configuration, comprised of 800 metres in asphalt and the remainder in compacted surface;
  • operating revenue from the Cabin Comfort business line for fixed-wing aircraft of €5.5 million, for a total of €2.5 million over the plan period and €0.9 million deriving from contracts with the Public administration or other OEMs for the use of the airfield.

The airfield project is confirmed in MAG Group’s strategies and in the parent’s commitment to ensuring SAT has the necessary financial support in the final investment stages and the subsequent start-up stage. This commitment was recently demonstrated with the proposal for the renewal of the contract with the subsidiary that manages and operates the infrastructure under a multi-year contract (48 months with a renewal option), with an adjustment of the fixed fees and a non-exclusivity clause for SAT, giving the latter the option of reaching direct agreements with bodies of the Public administration or OEMs at set terms.

On the basis of the business plan, the analysis of the medium to long-term return on the investment was updated via impairment testing as per the IFRS. This identified some issues as to full recovery and impairment losses were accordingly recognised on the related carrying amounts (€2.5 million), discussed in greater detail in the notes to the relevant statement of financial position caption (see Errore. L’origine riferimento non è stata trovata. Errore. L’origine riferimento non è stata trovata., PLANT AND EQUIPMENT). 

The company closed the year with performance substantially in line with that of the average of previous years, with the exception of the non-recurring component comprised of the €1,786 thousand impairment loss on current assets (net of the tax effect). 

[thousands of Euros or percentages] 2019/2020 % of R 2018/2019 % of R 2017/18 % of R 2016/17 % of R
TR – Total revenue from core business 155 155 155 155
R – Adjusted revenue 155 155 155 155
Adjusted EBITDA 57 36,8% 57 36,8% 59 38,1% 4 2,4%
Profit (loss) for the year (1.747) (0)% 28 18,1% 31 19,7% (59) (38,0)%


This company has its registered office in Wilmington, Delaware and an operating site in Philadelphia, Pennsylvania, near the Philadelphia North East Airport. Furthermore, it can operate in New Jersey in relation to some aircraft maintenance contracts administered by that state.

It also has a sales office in Irving, Texas, located in the Dallas-Fort-Worth aerospace district.

Its mission is to provide aircraft maintenance and overhaul services and interiors and regulation services and, therefore, is part of the ASE operating segment.

Its main customer remains the US Leonardo group company (AgustaWestland Philadelphia Corp.) with which a contract for the supply of the interiors of the AW119 and AW139 aircraft is in place. The company also carries out installation activities for some Bell Textron B505 VIP interiors in North America.

The company also operates as a service station for aircraft of the public administration (New Jersey State Police, Maryland State Police) under tenders acquired in public calls for tender, as well as for some private operators.

Its financial performance showed total revenue slightly higher than that of the previous year, with profitability substantially unchanged.

As discussed in the introduction (see Errore. L’origine riferimento non è stata trovata. PERFORMANCE), MAG Inc. did not make recourse to furlough schemes or economic assistance under the CARES Act1. It also obtained a subsidised loan approximating USD667 thousand under the Paycheck Protection Program which may be forgiven if certain conditions are met.

The following tables respectively show the normalisation items for the aggregates and indicators and the historical normalised figures. Reference should be made to the information provided for the group (see Errore. L’origine riferimento non è stata trovata.) for comments on the non-recurring or exceptional items which do not relate to operations:

(thousands of US dollars) R EBITDA EBIT
Non-recurring health emergency (Covid-19) - (121) (121)
Total net non-recurring expense EBITDA – EBIT -" (121) (121)

The normalisation of the aggregates and indicators for the reporting period is shown in the following table:

(thousands of US dollars) EBITDA EBIT
Pre-adjustment 1,293 744
Normalisation items 121 121
Normalised amount 1,414 865
[thousands of US dollars or percentages] 2019/2020 % of R 2018/2019 % of R 2017/18 % of R 2016/17 % of R
TR – Total revenue from core business 14.677 13.581 9.841 11.378
R – Adjusted revenue 14.734 12.588 11.013 10.716
Adjusted EBITDA 1.414 9,6% 974 7,8% 1.768 16,1% 1.278 11.9%
Adjusted EBIT 865 5,9% 905 7,2% 1.445 13,1% 950 8,9%
Profit for the year 353 2,4% 469 4,3% 108 1,0% 202 1,8%

Profitability is influenced by the production mix. Part 145 activities have increased over the last two years.

Its net financial position amounts to USD1,641 thousand at 30 September 2020 and always remained positive during the year.

The 2020/21 budget forecasts volumes in line with those of the previous year and a slight improvement in profitability.


Vertex Aero S.r.l. has its registered office in Monteprandone (Ascoli Piceno). It was incorporated as a wholly-owned subsidiary and transferred the ASE business unit responsible for coordinating and maintaining the DOA (Design Organisation Approval) certifications.

Vertex Aero was set up to acquire the DOAs necessary for the type certification of a new light helicopter with a maximum take-off weight of approximately 1,700 kg, intended for the urban aerial mobility programmes.

When the DOA was obtained and the conditions provided for by the sale and purchase agreement (“SPA”) for the investment signed with VR-Technologies LLC (the Russian Federation) had been met, the entire investment was transferred to the latter on 29 April 2020.

As a result, Vertex Aero is no longer part of MAG Group, although it continues to operate at the Monteprandone site as a fully independent company.

  1. Coronavirus Aid, Relief, and Economic Security Act.