CREALOGIX Group

SW: CLXN

CHF136m market cap

CHF97.5 last close

CREALOGIX Group provides digital banking technology solutions to banks, wealth managers and other financial services companies. The company’s suite of solutions includes online and mobile banking, digital payments, digital learning and security.

Investment summary

In September, CREALOGIX reported FY19 revenue growth of 17%, with EBITDA below our expectations as the company moves faster than anticipated to a SaaS model. The SaaS transition is expected to drag on results until FY21, before delivering a full year of benefit in FY22. We have lowered our forecasts and now anticipate 4% and 5% revenue growth in FY20 and FY21, with EBITDA of CHF2.6m and CHF4.7m respectively. Management also announced a transformation programme to position CREALOGIX for future growth, funded by a convertible bond refinancing to secure additional headroom for working capital and M&A.

Y/E Jun
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (CHFc)
P/E (x)
P/CF (x)
2018A 87.1 7.0 5.0 239.00 40.6 35.2
2019A 101.9 1.9 (1.7) (93.57) N/A 268.3
2020E 105.5 2.6 (0.7) (34.46) N/A 53.1
2021E 111.1 4.7 1.4 74.01 131.1 29.3
Industry outlook

CREALOGIX develops and implements front-end software that enables digital banking. The solutions are most often used by traditional banks to enable their journey to digitalisation, through the provision of a sophisticated, modern omni-channel offering to clients. CREALOGIX has multi-award winning technology eg the ‘Best of Show’ award at FinovateEurope for the last three years in a row.

Last updated on 26/09/2018
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (CHFm) 2.7
Forecast gearing ratio (%) 5
Price performance
%
1m
3m
12m
Actual (0.2) (13.7) (38.7)
Relative* 2.4 (14.1) (42.9)
52-week high/low CHF100.0/CHF81.0
*% relative to local index
Key management
Bruno Richle Chairman
Thomas F. J. Avedik CEO
Daniel Bader CFO