SNP Schneider-Neureither & Partner

DE: SHF

€230.4m market cap

€34.9 last close

SNP Schneider-Neureither & Partner is a software and consulting business focused on supporting customers in implementing change, and rapidly and economically tailoring IT landscapes to new situations. Its proprietary software suite automatically analyses, applies and tracks changes in IT systems.

Investment summary

The primary focus in FY18 was on integrating the recent acquisitions and positioning the business for growth in anticipation of the emerging digitisation wave. FY18 revenues of c €131m were below our forecast of €137.9m. Nevertheless, H2 adjusted EBITDA saw a c €5.4m improvement over H1 reflecting significant operational improvements. We have trimmed our FY19–20 revenue forecasts by 4–5% and adjusted EBITDA by 5–7%. Meanwhile, a key appointment has been made to drive sales in North America and SNP is close to announcing the hire of a new COO. SNP has a number of recent successful pilots, which it is optimistic will convert into larger projects. While the shares look punchy on c 32x our FY19e EPS, the rating could fall quickly as new projects come through.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 122.3 6.9 3.8 61.9 56.4 N/A
2018A 131.0 2.0 (2.5) (36.4) N/A 139.4
2019E 147.5 10.4 5.5 53.6 65.1 23.9
2020E 160.0 15.1 10.3 104.5 33.4 16.1
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 23.3
Forecast gearing ratio (%) 36
Price performance
%
1m
3m
12m
Actual 25.1 45.1 116.6
Relative* 20.6 41.6 90.8
52-week high/low €35.5/€15.1
*% relative to local index
Key management
Dr Andreas Schneider-Neureither CEO
Mr Joerg Vierfuss CFO
Dr Michael Drill Chairman of the Supervisory Board

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