Good morning, guys. I would it's my pleasure to welcome you to our conference call today. We will be discussing the press release that we issued earlier today, where we announced the acquisition of SynLab and and we had an update on trading where momentum has been positive and we had a couple of comments on the next stage of our strategic evolution. We have 45 minutes in total for the call, we have a short presentation for you. So we would expect to be doing about minutes presentation at about 30 minutes Q And A.
And with that, I will now hand over to Franky and Dominic, who will go through that presentation and then you could hand back to me to introduce the Q And A, that would be great. Thank you.
Okay. Thank you, Tobey. Good morning, everyone. Thank you for joining this rather short notice call. I would go through the current trading The Dominique will go through, in more details to, I guess, our our FASIN Lab Analytics and services, which is in line with the megatrend that the address group has been focusing on in the past couple of years.
And then I will come back to talk a bit more about the integration of the strategy of the group for 2023. In terms of the current trading, you know that we have postponed the investor day of October this year to May 20 21. I think it was good. Unfortunately, this for me to give a quick update. As usual, we give this up day to winter the Investors Day.
Next slide, please. As we announced this morning, The growth from July to October is a negative 3.8%. And we're seeing a good momentum for the month of September to October with the decline is less than 2%. So we're seeing a much better October 2nd birth and birth. It's the first part of the first half of this year.
In terms of, first half, you've seen that in China, we mentioned already that we were very strong during the first half of the year. And this momentum has continued towards the 2nd half and we're seeing a really strong growth and the strong demand for the domestic market. This is really across all the business lines that we're operating in China, but particularly in the Domestic PP, a domestic international IP, I would say, as well as the connectivity services in terms of 5G and IoT devices. Likewise, our food activities in China was really strong in the second half of this year with a lot of demand for the domestic market. On the more global level, our CLS and AFL, so our consumer goods and agri food and live has performed well during the second half.
And beside China, we have seen very strong growth in locations such as Vietnam, Turkey, Taiwan. For AFL, our licenses activities performed extremely well and our food growth has moved back to positive territory during the second half. Most of the other business now has improved during the second half with the exception of all gas chemicals This is really linked to the forecast to the demand of the market with the softness of the demand we were seeing still a lot of pressure on the oil and gas sectors. In terms of adjusted operating income, it has increased in the period of July to October, in buying a strong increase in our AOI margins compared to prior year. I think this improvement is mainly due to the improvement measures optimization program that we have implemented over the past couple of years, and we're seeing with the evolution of our bottom line in line with these, these measures as well as strong and reactive cost controls that were put in place in 2020.
Together with the situation of the COVID this year. Just to finish on the trading, considering the COVID situation is still occurring on, particularly some of the European affiliate and countries that has put new lockdowns is very difficult for us to estimate what's happening in the in the month of November December, are some of those effects are still being assessed. And this is why we're still not doing and we're still not giving an update in terms of full guidance for their chest drop. On that, I'm going to hand over to Dominique to talk to David about the of the acquisition of Macy's Mornings in LABLS. Dominique?
Thank you. Good morning. As you have seen this morning, we announced the acquisition of SynLab ANS. Currently ANS is a division of SynLab, the leading medical diagnostic services provider in Europe. Acquisition of ANS will significantly strengthen our global network and key strategic focus areas as environment, food, life science, and oil condition monitoring.
A and S is very much focused in Europe, and deploys an attractive hub and spoke model. In 2019, ANS achieved revenues of 1,000,000 and an EBITDA of 1,000,000. The organic growth of 5.8% in 2019 underpins the structural growth component of ANS by the performance in the first half twenty twenty with plus 0.3% was very resilient given the background of COVID. The purchase price consideration is expected to be around 1,000,000, and will be fully financed from our existing financial resources. We expect the closing of the acquisition 1, the combination and full integration of ANS with the UP and SGS network will accelerate deduction of a hub and spoke model, creating a more comprehensive range of services, and generating strong operating synergies, which should lead to a positive EVA in year 4 of ownership in line with our M and A strategy when it comes to strategic high demand targets, the structural growth and strong synergy potential.
A and S is active in 11 countries in Europe and employs 2000 FT
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Feet Feet Feet Feet Feet Feet Feet Feet Feet Feet Feet Feet Feet Feet Es. Bigest end markets exposures are Germany, Netherlands and Sweden. 60% the service offering is in the area of environment, 20% in food, 10% in life science, and 10% in oil condition monitoring. Next slide, please.
Now what does
it bring to us? Obviously, we enhance our position in the European Environment Food Life Science And Oil Conditioning Market. We especially increased our market share in Germany and Benelux, and it enables us to enter At 37% of ANS revenue is Germany. 25% is Netherlands. So in these two markets, we clearly increase our market share and further 25% is Nordics.
The vast majority is Sweden where we built basically a good market share. We will accelerate the adoption of our hub and spoke model and facilitate optimization of the existing laboratory network, which will drive strong synergy potential. Finally, it will open up you by the country service opportunities with key accounts, which we have globally. With this, I hand back to Franky.
Actually, Dominique, can you move to the next slide, please? I think there was one slight delay. So this is the network that the mill was referring to with the different positions of the laboratories of the HS Group versus the laboratories of seen lab in the next divisions, with the corporate manner directly of the 2 network that we've seen on these sites. Sorry about this. Next slide please.
So if I look up, before the Q And A session, so let me just give you a few words on the new 2021, 20 3 plan. As you know, the current plans that we set in place in 2015 will be completed by end of this year. The team are suddenly very active in the past many months to work on this new 2023 brand. With the objective of implementing that, crossed the network starting January 1, 2021. A full foundation of this plan will be given to all of you that participate to the since they may in, in Spain.
821. I think as a good highlight, we have worked on focusing the organization towards the megatrend for the 6 sectors that will influence the way we're looking at the evolution of the market drivers in the long term. For example, I believe that the SynLab Air Net Divisions acquisitions is a good example of this focus where the megatrend interval armamento food and licenses at the end where we have made the move to strengthen our positions across Europe. Likewise, some of the old omega trends that we'll be focusing on is, again, health, nutrition, connectivity, Natto Resources, I already mentioned environmental uncertainties are some of the key aspects that we believe there is strong drivers for the future. In terms of the organizations, you know, the DHS Group has the metrics organizations that it is a strength for the for the company that will be keep leveraging.
But I have simplified the business structures from 8 divisions down to 5 And this was the objective to be more focused on the market approach and to bring more agility in the development of the organizations. All that will be presented to you in, in May 21 in the industry in Spain that will be implemented across the network starting January. Just to conclude on my side is we will continue to able to edge of organizations. And it's also important for us to redefine and to beat our purpose of the company towards society. And this is why we focus a lot to our value to society.
We have to also develop an ambition 2030 plan, which with the stepping stone toward 2023, And we're also having creating or questioning upon purpose of automating a better, safe and more interconnected role, which will be up core of a lot of things we'll be undertaking in the coming years. On that, Toby, I'll hand it back to you for the Q and A.
Thank you very much, Franky. So, there's a number of people sort of stacked up in the queue line. And there's a couple of things to say. The first is, could you limit your questions to 2? The operator.
I think Paul Sullivan, your first on the line.
The first question comes from Paul Sullivan from Barclays. Please go ahead.
Yes. Good morning, everyone. First on the acquisition, can you quantify the synergies and then also tell us what you think solidating market means for pricing longer term? And then secondly, on current trading, Can you talk about can you just maybe quantify or elaborate on what you mean by significant margin improvement? And in terms of your caution about lockdowns, what percentage percent of the business do you think is exposed to the type of restrictions that are being imposed today?
Clearly, it's less severe than we saw previously. And do you think it's enough to raise the margin improvement? You've seen, July to October? Thank you.
There's 4 or 5 in there hidden away, but for the, if you
want to sort of work your way through that,
but please, you can always come back at the end of the call, guys. So if you keep it to 2 guys, that'd be good. Thank you.
I can go through the lockdown questions. Dominique, if you want to take on the the first one in terms of the acquisitions in Asia and so on?
Yes. So synergy potential, which we assess is 15 to 20,000,000 on the cost side to be fully realized within 3 years. In terms of what do we mean with the strong margin increase you have seen July is down, July to October is down minus 3.8 percent organically, but the earnings are growing, I would say, nicely mid single digits. So that implies a rather strong, strong margin increase so far, so far this year. And this is obviously, obviously, driven by the fact that the, to be fair, like, in the first half has to full potential capture of our structural cost optimization program of the 90,000,000 of the additional measures which you have taken but also some other restructuring measures related to, basically stopping some value destroying activities.
So who's driving the margin and also good, good debt collection, for going more into Q4. I just want to remind you that last year, the structural cost optimization program, the savings started to kick in in October. So, it's a bit of base effect, but overall, we are very pleased with the margin progress in this period.
Yes. Paul, maybe just on the lockdown. I think the severity of the lockdown is, is for the time being at least different than what we've seen in the sprint where there's still activities. You look at across Europe, most of the the countries has not put a full lockdown. But this is great for the short term.
What will happen if the number of infections hasn't changed by the government would put additional measures or not? It is still This is Wendy. There will be some impact, for example, for of the statutory inspection activities for automotive that we have in Spain and, in, and in France, is already we see already some delay of those risk take risks, rescheduling of some of those those controls. But whether there will be a catch up effect in December, like we had in the first half of this year, is still unknown, whether some of them will be split over into the second half of the first half of next year. It's difficult to say.
So I would say, severity seems to be different. These are less countries where last time was with Worldwide. This one is more Europe for the time being, but difficult to say in number of the full impact. So, to be honest.
Thank you, Paul. And then thank you, Franky and Dominic. So the next, is Ed Stanley from Morgan Stanley. If you'd like to ask your two questions, please go ahead.
Thank you for taking my questions. You talked very positively about domestic China. And I'm wondering whether post COVID, you expect to see a step change here and that domestic China can grow faster and be a larger portion of your group or whether this is actually a one off to do with PPE testing and and actually domestic China will rebalance back to its more normal portion of the group. And the second question, sort of follow-up on the M and A point. This is a larger deal than we've seen in the testing space at some time.
Should we expect other deals of this kind of size or are we more likely to go back to a smaller bolt on kind of M and A outlook from here? Thank you.
Hi, Ed. I'll go for the China questions and Dominique, you can talk about Germany is okay. You know what, for the China domestic market, we've been telling the market for quite some years now that the portion of the domestic market in the total portfolio of our operation is still growing. I think last year, we already flagged the correspondent up to above 50. I think we said 55%.
And this would be evolving together with the opening of the Chinese market. There is still a gradual, but it's happening. So there would certainly be some, some effect with the increase of the COVID weighted activities like PPEs, but you also look at all the activities like Sumit Honda for Industries, the wireless IoT Industries. They are all the activities food sector dimension. All the activities is more linked to the natural evolution of the Chinese market, partly because it's growing, partly because it's opening up.
I would say one would probably compensate for the others to which extent, I don't know, but we're still quite positive and we're still quite positive about the evolution of the Chinese market. Post COVID. Dominik, you want to tackle the M and A?
Yes, thank you. Thank you. Hi, Ed. So if you think about it and you're right, obviously, it is one of the larger funds action and especially for FGS, But it's completely in line how we also presented it. I think it was exactly 1 year ago, in China, during the Investor Days that we said we are we are very open also for, for, let's say, more size for advanced actions, which really, a step change for business unit and moves the needle.
Now, whether we see more and at what time on the site, it is always a bit difficult to say because it depends also a lot on the actionability of assets and whether the actual assets are really fit into our strategy and whether we have the right value, value proposition, So definitely, we're looking in the market, we're looking, especially our food, life, environment, cosmetics, a couple of, of, of, of also, yeah, other, other areas that were more smaller bolt on I would argue it's not that you have now so often, a possibility like this opportunity and soft size, but I would I would not say it's just now only 5 to 10,000,000 acquisitions. I can imagine in the past, which I just mentioned, as focus area, there may be also opportunities who are very nice bolt on we are the purchase price considerations maybe more in the 50,000,000 to 150,000,000.
Okay. Thank you very much, Dominic. And the next person we have on the call is Sylvia Barker from JP Morgan.
Maybe just on the acquisition, can you talk about how that came about? Was it a competitive process? Are there any earnouts? How is it structured? And then secondly, on the new divisional organization, could you talk about any savings related to that and also any restructuring and cheating a little bit, but just in terms of restructuring related to the acquisition, maybe if you can just mention that as well as a mini third question?
Okay. If we if this was a competitive process, so basically, similar decided to spin off, in S division, and there was a competitive process, where we were engaged. And finally, could basically win this process, in terms of synergies, obviously, there are a couple of areas where we see strong synergy potential. The A and S division is is especially in the in Germany in Switzerland very much integrated into SINLAC. So there is a carve out necessary But obviously, if we're carving out this unit and take it into our network and our let's say backbone, we see quite strong synergy potential.
There's obviously opportunities in the overhead and general and administration. And as I mentioned before, if you look to the hub and spoke model, which which we feel is a very attractive model, it will help us and it will also help us to consolidate both our networks. And this is these are the main levers to achieve this synergies within the next 3 years.
Well, the second part of the question, Sylvia, the reorganization of the group for for next year is more really about market approach and growth, agility, digital, M and A, focused better capital allocation towards the megatrend, really more than restructuring. I think in the past few years, we've done a lot of optimization of the network because the latest one was done in the second half of twenty nineteen. And I think, I believe I mentioned to the market that I believe we are where we need to be in terms of the delivery engines. We have those programs of world class services. We have those program of a lean system that we will continue to deploy and they are continuously improving processes.
But the organizations, the vision is really about growth, about better allocations to what of, capital what we believe is the right market in the long term, more than I know the restructuring of our organizations, I would say.
Okay. Thanks very much.
Thank you very much. The net on the call is George Gregory from Exane BNP. Go ahead, George, please.
Hi, Sophie. Good morning. Frankly, good morning, Dominic. Just firstly, Frank, you mentioned that, China in particular benefited from TPE sales. I wondered if you could give us any, color on the benefits that you saw from PPE and whether or not that had any particular impact on the margin, And secondly, on the margin, you mentioned, Dominic, that, frankly, the benefit, the uplift was principally due to optimization measures carrying through, just wanted to check if there was any notable movement in provisions over that July, October period please?
I don't know, Toby, you need to, I don't think we give the numbers of, specific activities that we do Parkgrove or PP or so on, correct?
Correct. No, we haven't yet.
I would say it is, I would say it is is I wouldn't say feasible in the sense that, it makes a major changes in our total portfolio. It's a good evolutions. Certainly, you'll see that the demand for those PP testing is very high. I think that Pete was really at the end of the first half, beginning of the second half, but the quantity of the pipeline that we request has stabilized. But we still see a steady flow.
I would say throughout the beginning of the year, we were looking more for hygienic a mask and now we're more looking at the more sophisticated FFP2 and the N95 mask. So the market is shifting a little bit. But we still see a good demand, but I don't believe we provide the exact amount of what we do per category of products. Dominique, you want to answer the
To the second question, there are no changes in provisions. However, on this, I said, when I talked about the leverage, there was good bad debt collection. Yes. So of course, if you collect better than the prior, it has a positive impact on the margin. But it was not the main driver.
The main driver was the operational leverage, so to say, as the underlying cost base was going down.
Thank
you very much. And on the PPE testing, I think as we put in the statement, it's clear that we've got the leading market share in terms of volumes, and it's clearly supported for our Softlines business within Consumer, but obviously we don't disclose the overall So could I also say at this point that, for members of the media, this is an investor and analyst call and the media can follow-up with Daniel Rifinhardt who's contact details at the bottom of the press release, and that should happen after this call or separately from this call. Okay. Next, from Goldman Sachs, it's Sulerini. Please go ahead.
Hi, good morning, everyone. And just a couple for me, please. If we think about the minus, you mentioned earlier that for the minus 3.8% or declined July to October. Your products are up mid single digit. To clarify, was that on a constant currency basis or on a reported basis, please What's the effect impact so far in Q3?
It's organic, organic decline. So it's organic is in constant currency.
The profits were up within the digit organic and constant currency basis?
Yes, sorry, what did? Okay, In constant currency, I talked about constant currency.
In constant currency, yes, yes, yes, yes. Profit. And FX impact will follow-up with Toby later. So if you think about the level of cost optimization measures, how should we think about normalized levels of margins once the economy normalizes post COVID world, are we looking at the same 18% plus margin target that you had for 2020 before COVID hit?
So first of all, we had more than 18% plus targets. Our margin was 17%. And then when we had the margin target was once reduced, I think, to 17%. I think this must have been an autumn 2018 and we implemented the cost optimization in mid mid-nineteen and said we are very comfortable to come to 17% plus at the end of 20. If you think about this and and, if you think about this, we we finished, we finished, 19 the 16.1.
Now we can add to, and the 15.1 was already 15,000,000 of of the cost optimization program already considered because this was the impact of Q4 last year. And the remaining 75 incremental coming in this year. Now, therefore, we felt very comfortable because if we would have let's say, even lower lower single digit growth, we definitely would have surpassed the 17% just if if if if you do the math, And this has in general will not change, but obviously COVID happened and revenues are down So what you I I would ask you what you would see is if you if you come back, when airlines will be to 'nineteen revenue levels on a LTM basis, our margin should be significantly higher as as in 2019, we didn't had we didn't had yet the full benefit of the cost savings.
Okay. Thank you very much.
I hope that helps.
And please, please, anyone do follow-up with me later if any of these details can't be heard or aren't clear and I can clear that up. So the next, we have JP from Bonterbel. Please go ahead with your questions.
Thanks, Toby. Good morning to everybody. The first one is on M and A again to have a kind of an assessment from your side. What is probably your, not the target, but what is your net debt to EBITDA goal? Knowing that you're spending now more than 500,000,000 in acquisition share buyback, and then you would have to give it in as well.
So we'd be very much interested in that. The second one is, as well, the peculiar situation with your boards with the concrete reducing the stake to 0. And it's still on the boards and you're having now a massive strategic review. How do you see that in that situation?
Dominique, you want to tackle the first follow-up question? I'll tackle the second.
Okay. Let's start with the first question. If you looked at, of course, our balance sheet is so far very, very unleveraged. Of course, we'll get now a bit more leverage given the purchase price conservation of the acquisition of ANS. We don't have the specific We have a good target, but I can assure you that that management and board wants to have always a strong balance sheet with a strong investment grade rating, and it's very committed to the dividend policy.
So that would mean that obviously there is still a room for for bolt on acquisitions as the leverage so far is, yes, very low. It increases now a little bit, but not massively. The acquisition, of today.
Okay. If I JP, if I echo the second questions. You know, the strategic review of, for the 2023 has been going on for quite some months now. In fact, we started almost a year ago. Obviously, it takes a year ago, it takes time, because a lot of things to be done, we need to be right, that Mr.
Van Fink, and the board was involved into this discussion, this vision, this review, the fact that his shareholding is at 0 And what would come next to the, to the organizational report is not for me to comment. It's more for the chairman. I would say, is kind of business as usual for us at management level where we both would involve into this strategy where we started this venture from thing holding was high than what they have now, as is what happens next at the next board meeting is, next AGM is not for me to comment.
Thank you,
Frankie. And next, we have Will Kirkness from Jefferies. Will, would you like to go ahead, please?
Thanks. Yeah. Couple please. So just firstly on the deal, and the comment about EVA positive, I appreciate there's lots of puts and takes on that. Just wondering if, how you think about growth, whether the FY 2019 level of growth is right for sort of the next 3 or 4 years, and perhaps the rate of depreciation in that business?
And then secondly, just on the underlying group, if we see a slight change in perhaps U. S. Strategy to China, do you think that makes a difference or do you feel that trends are fairly well entrenched anyway?
Maybe I'll take the first one. So we believe, this business is, mid single digit. With what we what we're thinking in terms of growth. As I mentioned, it's very, very resilient. It was even slightly up during the COVID time in the first half this year compared to prior year.
The depreciation is around 4%. Of revenues.
Okay. Thank you very much, Dominic.
You want me to comment on the second part, Tobi?
Yes, please. Go ahead.
On the China, I think the position of the U. S. Toward China, we're depending on which direction it goes. If it's a, it becomes more flexible with the new administrations, I believe that, the activity of the international trade will have a positive momentum towards what we've seen in the last few years. But I would say also that a lot of the other countries and districts government has understood the risk of a 2 focused approach to China only.
So the day localizations, the diversification of wage from China would carry on to some spend, but I believe that, there will be less pressure from the U. S. Side, but, evolution of the more simple product throughout the location like Turkey, Vietnam, and so on, we'll carry on.
Thank you, Frankie. Next, we have Neil Tyler from Redburn. Neil, would you
like to go ahead, please?
Yes. Good morning. Thank you.
2 left from me, please. Firstly, on the trading update, and another question on the margin, you talked about additional cost measures over and above the 90,000,000. Can you just confirm whether or not those additional measures are permanent or temporary in nature, and whether we should be assuming those remain through next year. And then secondly, on the deal, Can you give us some idea of the, percentage of revenues, at the acquired company did already have a lap in terms of geography and market, which are owned. So I guess I'm I supposed to be thinking about this as, an acquisition that fills the hole, the one where revenue synergies and sort of complimentary offerings are, are a significant strategic imperative.
Dominique, why don't I take the first part and you take the second part? Sure. So for the first part, in fact, when I talk about additional cost cost measures in 2020 is really to reflect it to be the current circumstances with the COVID, so I think we reflect during the first half result that they are market sectors where you don't see, a strong, momentum coming back in the next, 2, 3 years. For example, the aviation industry and so on. And these are really the sectors in which we have taken additional measures because we don't believe that, it is right for us to keep the resources or the asset in place while the market would not be back.
So these are more related to the to the current situations. If those market comes back in 2, 3 years, we'll certainly reinvest, but the saving would be there if the market situation do not change, because we have just adopted a little bit our network to the market conditions that we're facing today, in the near future.
Regarding the second question, we definitely see some synergy potential also on the revenue side, but our investment case, we try also to focus on the cost synergies because they are easier to achieve, obviously, But if we look to the model, I mean, 1st of all, in the Nordics, we are very small. So the SDS stays an overlap. And then if you look to the model, they are with the hub and spoke model much more, in terms volume model, volume delivery, I would say also maybe more, more, more, more, yeah, volume, basic, basic text why we have in the end markets more sophisticated tests. So I would say the there is less overlap, but here, and they are, there is definitely some overlap. I think maybe Thank you, Peter.
If you maybe Peter can add a bit more color as you write DHS?
Sure. Sorry, I'm going to put Peter with with us, Peter is the head of our global EHS activities and is quite instrumental behind this deal. Maybe Peter is going to say a bit more about the synergies that we see with this deal.
Sure. I want to make it clear that one, we have a geographic gap as Dominic said in Scandinavia, which is being filled here, which is fantastic. And also then for the rest of Europe, This is more of a situation where we're looking at high volume business associated with contaminated land. Associated with municipal water, which is an area that we have never really tackled, at the SGS group, We've wanted to, but you really need this hub and spoke model to make it successful. So you're looking high volume testing, as Dominic said, you're looking at markets in France, Spain, Italy, which can feed into that hub and spoke model.
And then generate the, the profits in, in the Netherlands, which is the, the biggest hub. So it's a new market effectively for us. We play on the more sophisticated industrial end. This is looking at municipal water, consultants, contaminated land. And there's 300,000 contaminated land sites left to remediate in Europe.
So there's plenty of work for us in the future. Thank you.
Thanks very much. Very helpful. Yes, just to compliment on what Peter says was we'll be using our existing network of Tejas Group, so in terms of sales and in terms of customer approach on that.
Thank you, Frankly. Thank you, Peter. So the next questions come from Julien Fusch from Societe Generale.
My question. My first question is on China. China delivered organic costs mainly thanks to the domestic market. Could you give us a bit of color or on the trends you've seen on the non domestic market. And secondly, on CDE, there was a strong pickup in transportation, but could you quantify the catch up effects you've seen in certifications since July?
Thank you.
Hi, Junen. I can go for a China 1. The, yes, the non domestic market is still it's still growing. It's just that it's not growing as fast as. So the other domestic market In fact, we also see in terms of the non domestic market, we see momentum in the E and E product.
We see momentum into hardwood product. The SoftBank product is certainly softer, but is compensated by their PP activities. And a lot of those PPEs goes to a to the overseas market as well. So I would say it's not the situation where the domestic market is growing on what the international market is dropping. I would say it's the mix of the 2, but with the clear strength on the domestic market versus the international one.
Regarding your second question. So if you look to the recent months, so basically as of start of Q3 growth accelerated and now it's high single digit in the certification part. I want to outline this. It's a certification part who's picking up, as we mentioned, during the trading updates in the first half. And a lot of this project, we are postponed by the client.
I think that they are pretty successful with remote audits as well, but we have seen basically, yeah, after the summer break, so to say also that activities reaccelerated and now it has recently high single digit growth in the certification part. The business enhancement path, where we talk more about technical consultancy, where we talk about training and so on these activities, are still on a lower level, but the certification part is nicely picking up.
Okay. Thank you.
Thank you. And then the final questions we have are from Daniel Bercke from Zed Katie. Please go ahead, Daniel.
Yes, thank you. I have a
question on your oil business. You said it's going worse than in the first half? Could you elaborate a little bit? And what would it take for this business to improve obviously the oil price, but also other factors.
Thank you. If you look to the first half then, in the first half the revenue in our Oil Gas Chemicals business was down organically 6.9% on 7%. So what I would say is a pretty good decline rate given the market circumstances, at the time, it was not only COVID was also, the low oil price and general, there were no movements of vessels. So, and this last that it was, let's call it, only down around 10% of first half, but also a function of having quite a good start into this year before before COVID happened. And therefore, and as we said to the half year numbers, we're not expecting they are better decline rates, so to say, in the second half, and this is basically true now.
It did event now much growth, but it weakened a couple of percent more given the overall environment and but also given the fact that a lot is driven by, quite some reductions in the upstream business, which is not surprising.
Thank you.
Thank you. And so with that, we come to the end of the Q and A. I would like to highlight that clearly I'm around, today. So if you have any additional questions, please email or call And again, if you're if there's any members of the media who would like to follow-up, please give Daniel Ruffinat or contact Daniel Ruffinat who who's on his contact details or on the press release. And with that, Franky, I'll hand it back to you to close, please.
Yes. First, thank you. Thanks for attending the call. I'll set this as the one step more towards our Strategic Abolutions, with the acquisitions, our SynLab AMS divisions, we'd see the the provision in terms of the megatrends of the tick sectors. We're focused with organizations to, to go towards that.
Simplification of the organizations, the additional agility, the market focus will be put in place will be all explained. To all of you during the investor days of, May 2021, and I'm look forward to seeing you there. Before that, we'll have certainly meeting you all for the full year results in a couple of months. That's it, Tobey. Thanks.
Thank you guys. With that, we can close. Thank you.