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Broadly in line PandL results in 2023 while net debt higher than expected WIIT posted sales of EUR130.1m, +9.5% YoY (organic estimated flattish). WIIT adj. EBITDA came in at EUR50.8m (39% on sales vs 35.5% in 2022), in line with our estimate of c. EUR50m. EBIT margin was 21.5% (vs 19.4% in 2022). 2023 ND is EUR202m (vs EUR190m expected), c. 4x EBITDA (EUR154.2m incl. own shares and excl. IFRS16, c. 3.3x EBITDA). Dividend is EUR0.3/s (1.6% yield). Conf call feedback: MandA, synergies, efficienc
Companies: WIIT SpA
BNP Paribas Exane - Sponsored Research
Growth trends continue in Q2 WIIT posted Mid-Single Digit organic sales growth in Q2, slightly better than in Q1 23. Sales came in at EUR32.4m with EBITDA of EUR12.3m, representing a 38% margin (vs 37.7% in Q1 23). EBIT was pretty similar to Q1 at EUR6.7m. The Net debt reached EUR198m after capex of EUR15m, dividends of EUR8m, buyback net of share disposals of EUR5m, and MandA of EUR7.3m. Conf call feedback: margins to continue expanding, Tier IV almost ready Management stressed the idea that
Organic growth, MandA, cross selling and good cost control drives a solid quarter WIIT reported 20.6% sales growth with mid-single digit organic growth. The company benefited from the consolidation of newly acquired companies (Lansol, ERPTech and Global Access) and a continuation of the cross-selling story. The EBITDA margin gains back the level of 37.8% vs 37% in Q4 22and 35.5% in FY22 thanks to the synergies that the company is generating after the acquisitions. In Italy, the EBITDA margin sto
Strong Q4 22 even if FCF lags due to capex plan WIIT ended the year with a strong Q4 22: organic sales growth was c. +15% (reported +39%) thanks to new contracts, upselling, and cost recovery actions on pricing. EBITDA margin is back to 37% thanks to a full recovery of the gross margin after the dilutive effects of higher energy costs. Without a one-off effect from the signing of Tinexta, the margin would have been 35.5%, which is close to the H1 level. Group net debt stood at EUR183m, in line w
A good Q3 with sound organic growth and limited impact from energy costs WIIT reported an in-line set of results in Q3 22, with revenues at EUR31m (with low teens organic growth). The adj. EBITDA stood at EUR10.1m, in line with expectations, with a margin of 32.5% (32.3%e). Net debt increased to EUR180m (from EUR160m in H1 22) due to the acquisition of Lansol. The cost of electricity remained at c. 7% of sales in Q3, as in H1 22 (7.6%). Given possible concerns on the trend for this cost item, th
Elections confirm polls, with the right-wing coalition winning a majority of seats The Italian elections resulted in the right-wing coalition led by Giorgia Meloni of the Brothers of Italy winning a majority of seats in both lower and upper chambers, though far from the 2/3 needed to change the constitution. The new government will officially start in the week of Oct 10th, and after an initial phase of selecting ministers, it can begin effectively governing from early November. Thus, we may ne
Companies: SAB LUVE FNM IRE MN SES HER AIW IF TIP FNM IRE GHC CEM IGD WIIT COM SAB IF UNIR SCF CEM ILTY MN LUVE IGD TIP HER SES ORS
Organic growth improves slightly in Q2 but energy costs continue to weigh on margins Last week WIIT reported around mid-single digit organic sales growth in Q2 22, improving from Q1, with WIIT mother company in Italy and Myloc growing organically at double digit rate. The reported sales growth was +61% thanks to the consolidation of Mivitec, Gecko Boreus and ERPTech. The organic growth was still impacted by the ongoing sales mix improvement (by getting rid of low margins business) even if booki
Germany represents a huge opportunity on an organic basis... The cloud market is 3x larger in Germany than Italy and much more skewed to private cloud. Despite numerous SAP-certified competitors, we believe that WIIT''s aim for a Tier IV datacentre in Germany would be a competitive advantage. Finalising the integration of the newly acquired companies should allow increasing monetisation of the respective client bases with the cross-selling of different services and capabilities. Profit growth sh
Q1 in line with expectations but group organic growth still low WIIT reported sales growth of +48.6%, fully driven by the consolidation of the newly acquired companies in Germany (Mivitec and Gecko Boreus), with the rest of the group recording fairly flattish revenues YoY. The Adj. EBITDA reached EUR10.1m, implying 38.2% margin, a reduction of 200bps YoY due to the new acquisitions and the increase in electricity costs in Germany. We estimate that in Q1 22 the weight of electricity costs in sa
Q4 21 results continue the positive trend seen in FY21 In Q4 21 WIIT reported an organic top-line growth around mid-to-low single digit (+36% reported) with an Adj EBITDA margin at 32% (vs 33.2% in Q4 20). The proforma figures for 2021 (including the MandA done in 2021) are: sales EUR102.9m and EBITDA EUR36.7m (35.4% margin). Net debt reached EUR139.3m after the acquisitions done in Q4, as FY21 capex stayed at around EUR21m and the company did EUR6m of share buybacks in FY21. Dividend will be E
Q3 21 shows less organic growth but Germany outgrowing In Q3 21 WIIT had an organic sales growth of c. 4% (including MyLoc, the pro-forma organic growth would be closer to c. 10%) slightly lower than the level recorded in H1 21 (c. 11%) even if MyLoc continued to grow strongly at double digit rate. The new contract with De Cecco will enter only in 2022 so it did not contribute to 9m21 results. Group EBITDA margin remained at a high level of 42.5% (better than in H1 21 of 40.5%) with the newly a
Significant acquisition of premium MSP and DevOps player in Germany WIIT acquired two German operating companies that ran the commercial brand Release 42. Release 42 specialise in cloud Managed Service Provider business for private and public cloud (Boreus subsidiary) and in DevOps software solutions with a focus on kubernetes technologies (Gecko subsidiary). The operating companies achieved 2021e sales of EUR27.6m and EBITDA of EUR8.9m (32.2% margin). Enterprise Value to be paid is EUR70.8m,
Q2 shows strong margins and booking trend - new non-convertible bond of up to EUR150m WIIT group posted c. +5% organic growth in Q2 21 (+46% reported), with 9.5% at the mother company level of WIIT SpA, driven by continuous focus on value-added services, cross-selling of the acquired companies and acquisition of new customers. An important forward-looking metric is the booking trend, which has been very strong, pointing to an acceleration in our view. Group EBITDA margin was 40.7% in Q2 with th
Strong growth continues, and even an expansion of margins on an organic basis WIIT reported 58% sales growth (12.5% organic excluding MyLoc) driven by new value added services, cross selling and acquisition of new clients. The growth is slightly better than expected (11% organic growth). The Adj. EBITDA margin reached the level of 40.3% (EUR7.15m vs EUR6.6m expected) and excluding MyLoc it would have reached 36.4% (vs 34.9% in Q1 20 on an adjusted basis which was without MyLoc). The adjusted E
FY20 results already pre-released in February - dividend set at EUR1.05/share WIIT held a conference call to update on its FY20 results and the ongoing trends. As a reminder, FY20 sales grew as expected by +55% (up mid-single digit organic according to our estimates, with the parent company WIIT driving the organic growth at +14%). The Adj EBITDA margin was 34.8%, almost 100bps lower than our estimate. As a result, adj. EBIT and net profit at EUR9m and EUR6.1m respectively were also slightly be
Research Tree provides access to ongoing research coverage, media content and regulatory news on WIIT SpA. We currently have 0 research reports from 2 professional analysts.
This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored. We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.
Companies: Idox plc
Progressive Equity Research
Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
Companies: Alphawave IP Group PLC
Capital Access Group
Companies: CML FDEV NRR SSPG RMV AO/ ZIN
Shore Capital
Companies: AO World Plc (AO:LON)Marks Electrical Group Plc (MRK:LON)
Canaccord Genuity
Eleco’s FY23 trading update highlights record recurring revenue growth of +22% to £20.7m, strong profitability that leads us to expect FY23E adjusted EBITDA +3% ahead of our previous forecast, and a confident outlook that leads us to reiterate our FY24-26E EBITDA and EFCF. Across the group, excellent execution of the SaaS transition has driven recurring revenue to 74% of group revenue from 64% in FY22, and ARR is +24% yoy to £22.6m (£19.7m at H1), including c£2m of ARR from the successful acquis
Companies: Eleco Plc
Cavendish
Companies: Cirata Plc
Liberum
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
Companies: PTAL GHH IGP MSLH PINE NXQ EQLS NXR AXL
Zeus Capital
Companies: Synectics PLC
Companies: Gaming Realms PLC
Maintel has reported a trading update for the year ending December 2023, indicating revenue in of at least £101m and adj EBITDA of “in excess of £9m”, compared with respective forecasts of £98m and £8.6m. Net debt of £18.1m also outperforms our expected year-end net debt of £18.6m. The group is continuing the trend established with the reintroduction of forecasts in April 2023, where growing confidence in delivery led to upgraded forecasts in both August and September, and still achieving outper
Companies: Maintel Holdings Plc
Companies: GHH PHC GETB DEC LORD GELN
ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).
Companies: Auction Technology Group PLC
GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI
Companies: Intelligent Ultrasound Group Plc
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