Piteco

MI: PITE

€76.5m market cap

€4.22 last close

Piteco is Italy’s leading company in the design, development and implementation of software for treasury, finance and financial planning management.

Investment summary

H1 net sales revenue grew by 19% to €8.8m, including a full period from Juniper Payments – a US payments software provider that was acquired in early 2017. EBITDA rose by 28% to €3.3m, as the margin lifted 331bp. 30 new customers signed in 2018 (23 were in H1) including Dolce & Gabanna, Marcegaglia Group and GUESS (USA). Piteco is acquiring 56% of Myrios for an intial €6.9m plus financial position. There is also an earnout and a put option on the 44% balance. In FY17, Myrios generated sales of €2.8m, up 27%, with EBITDA of €1.5m. Myrios designs and implements high-value IT solutions, focused on the banking sector. We are reviewing our forecasts.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A 14.1 5.6 5.0 24.4 17.3 13.8
2017A 17.0 6.5 5.6 30.3 13.9 13.5
2018E 20.1 8.0 7.2 36.0 11.7 9.4
2019E 21.8 9.0 8.3 39.3 10.7 8.3
Last updated on 22/03/2019
Industry outlook

Piteco is the leading player in the Italian treasury management systems (TMS) market. TMS are software solutions used by corporate treasuries and finance departments to manage transactions and support their decision-making. The software and ICT solutions market in Italy is valued at €6.3bn (Assinform 2016). A small slice of this (Piteco suggests c 5%) represents the market for treasury and financial planning software. IDC forecasts the worldwide treasury and risk management applications market to grow by 4.9% to reach $2.7bn in 2022.

Last updated on 22/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 2.7
Forecast gearing ratio (%) 8
Price performance
%
1m
3m
12m
Actual (3.7) 10.5 (14.9)
Relative* (7.1) (3.4) (9.2)
52-week high/low €5.3/€3.6
*% relative to local index
Key management
Marco Podini Chairman
Paolo Virenti CEO
Riccardo Veneziani CFO
Andrea Guillermaz Sales Director