# Orpea shares jump on Q4 revenue and cash boost
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Orpea Shares Surge on Fourth-Quarter Revenue Growth
Meta Description: Orpea's scandal-hit French care homes group sees 8% rise in fourth-quarter revenue and plans capital increase, boosting shares by 16%.
URL: https://financedigest.com/orpea-shares-jump-on-q4-revenue-and-cash-boosthtml

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PARIS (Reuters) – Shares in scandal-hit French care homes group Orpea surged on Monday after the company posted a nearly 8% rise in fourth-quarter revenue and spelled out the details of a planned capital increase.

Orpea said revenue growth remained solid with an increase of 7.7% of which 5.7% was organic, adding that its cash position at the end of last year was estimated at 856 million euros ($914 million), above the 350 million euro forecast the company had made in November.

It said the improved cash position was mainly due to extended credit lines and a suspension of loan repayments granted by creditors last year.

Its [shares jumped](https://www.financedigest.com/global-shares-jump-but-bank-whack-a-mole-not-over.html "Global shares jump but bank ‘whack-a-mole’ not over") 16% higher on the Paris stock market on Monday morning, to trade at 4.23 euros each.

Full-year revenue in 2022 rose 8.9% to 4.681 [billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") ($5.00 billion), in line with financial data presented in November, the company added.

The [company also said the risk of a liquidity](https://www.financedigest.com/closing-a-limited-company-three-alternatives-to-liquidation.html "Closing a limited company: three alternatives to liquidation") shortfall was now postponed until the end of the second quarter.

Earlier this month, Orpea announced it would cut its [debt by around 3.8 billion euros and receive a cash equity injection of 1.55 billion euros under a deal](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") reached with state financial institution Caisse des Depots & Consignations (CDC) and other investors

The company on Monday said that a planned [capital increase](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") amid a wider restructuring process would reflect a theoretical share price value of less than 0.20 euros, significantly lower than its current valuation.

A first capital increase would reflect a theoretical [issue price at approximately 0.59 euros per share](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop"), followed by two additional tranches which would translate into individual share values of 0.18 euros and 0.13 euros respectively, Orpea said.

Orpea’s [shares slumped](https://www.financedigest.com/ubisoft-shares-slump-20-after-french-video-game-maker-warns-on-revenue.html "Ubisoft shares slump 20% after French video game maker warns on revenue") by 93% in 2022 after a book highlighted potential malpractice at its care homes.

French police carried out raids on Orpea [care homes](https://www.financedigest.com/the-home-care-services-market-to-get-pushed-based-on-digitization.html "The Home Care Services Market to get pushed based on digitization") last November, while an independent audit found evidence of financial wrongdoing. Orpea has said it has taken [steps to improve](https://www.financedigest.com/improving-your-it-team-in-four-simple-steps.html "Improving your IT team in four simple steps") its business practices.

($1 = 0.9369 euros)

(Reporting by Olivier Sorgho and Tassilo Hummel, editing by Emelia Sithole-Matarise)


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