lleida.net announced 2Q21 results with a +17% increase in gross profits (vs +6% in 1Q21) coupled with an uptick in costs (+30%) that has resulted in a 7% decline in operating profits to €311k and a drop of 3% in pre-tax profits to €271k. Despite the headline profit numbers, Lleida net remains on a strong growth trajectory for the year.
We are toning down our forecasts on the lower than expected SaaS growth in 2Q21 (we had a +65% growth for 2021), but we still expect 2021 to be a stellar year for Lleida.net. The announced acquisition will provide a strong value creation opportunity for the company.
We will maintain our target price unchanged for now based on the probable upside provided by the proposed acquisition.
22 Jul 2021
Organic and inorganic growth in the right direction
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Organic and inorganic growth in the right direction
LleidaNetworks Serveis Telematics SA (ALLLN:PAR) | 0 0 0.0% | Mkt Cap: 12.5m
- Published:
22 Jul 2021 -
Author:
Guillermo Serrano -
Pages:
16
lleida.net announced 2Q21 results with a +17% increase in gross profits (vs +6% in 1Q21) coupled with an uptick in costs (+30%) that has resulted in a 7% decline in operating profits to €311k and a drop of 3% in pre-tax profits to €271k. Despite the headline profit numbers, Lleida net remains on a strong growth trajectory for the year.
We are toning down our forecasts on the lower than expected SaaS growth in 2Q21 (we had a +65% growth for 2021), but we still expect 2021 to be a stellar year for Lleida.net. The announced acquisition will provide a strong value creation opportunity for the company.
We will maintain our target price unchanged for now based on the probable upside provided by the proposed acquisition.