The Board of Directors of Avio, a leading rocket engine manufacturing enterprise listed on the STAR segment of the Italian Stock Exchange, today reviewed and approved the financial statements of Avio at December 31, 2019. Avio is the Prime Contractor of the European light satellite launcher Vega and supplier of the heavy launcher Ariane.
2019 has further consolidated the profit and cash growth seen over recent years despite the difficulties resulting from the failure of a Vega flight last July, stated Avio’s CEO, Giulio Ranzo. In parallel, Avio has continued to invest heavily in technology and new programmes while maintaining a strong financial position, allowing to confidently look forward to the next 4-5 years in which Avio will work on new projects for Vega C, Vega E and Space Rider, which were recently fully funded at the ESA Ministerial Council in Seville.
The COVID-19 outbreak represents a global emergency whose length and effects on the global economy are not fully foreseeable as of now. For this reason, we have decided, together with the Board of Directors, to precautionarily allocate to reserves all of the 2019 profits and not to pay long-term performance incentives to Management, in order to protect the financial structure of the Company. The specific situation and the perspectives, also related future dividend distributions, will be re-assessed at the half-year accounts closing, once the global impacts of the emergency will be clearer. In the meantime we are focused on working on the long-term sustainability of the Company, by protecting its financial structure to keep investing and getting ready to the future with new technologies and products.