Vantiva consists of two businesses: Connected Home (CH), a leading global supplier of strategic customer-premises equipment solutions, and Vantiva Supply Chain Services (SCS), a global leader in the production of discs and associated logistical fulfilment.
The ongoing trading backdrop is mixed and management remains cautious on demand from the network service providers, key customers of the CH segment. However, relationships are very close and there is plenty of co-operation on technical developments, such as DOCSIS 4.0, Wi-Fi 7 and 5G FWA. These should spur demand as service providers introduce them, with the increased scale post the CommScope acquisition cementing commercial relationships further. SCS’s ambition is to build on its expertise in precision manufacturing and complex logistical fulfilment.
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Lars Ihlen
CFO
Luis Martinez-Amago
CEO
Richard Moat
Chairman
Thierry Huon
IRO
Forecast net debt (€m)
491
Forecast gearing ratio (%)
1819
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (16.9) | (33.1) | (47.4) |
Relative | (22.4) | (33.2) | (50.9) |
52 week high/low | €0.3/€0.1 |
Vantiva has announced the purchase of CommScope’s Home Networks business in exchange for CommScope taking a 25% stake in the enlarged group. The deal significantly increases the scale of the CH segment, with combined revenues of $3.6bn (€3.4bn) in the 12 months to June 2023, enlarging its customer base and geographic reach. Run-rate cost synergies of $100m by FY26 have been identified and the deal would accelerate the improvement in cash generation, so reducing the debt burden. An earnout based on demanding EBITDA targets across FY25–29 is in place, capped at $100m. Completion is expected in Q423. Meantime, Vantiva has agreed a new €85m financing facility.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 2250.0 | 105.0 | (126.0) | (61.0) | N/A | N/A |
2022A | 2776.0 | 161.0 | (497.0) | (197.0) | N/A | 0.4 |
2023E | 2137.0 | 140.0 | (34.0) | (11.0) | N/A | N/A |
2024E | 2084.0 | 134.0 | (43.0) | (12.0) | N/A | 0.3 |