There are five key reasons why Zalaris represents an exciting investment case.

1. It operates in the fast-growing human capital management and payroll market, forecast for 8–10% annual growth as businesses increasingly look to streamline back-office functions.
2. Zalaris is highly competitive in large, complex multi-country projects – an attractive sub-segment of the wider market. Its single platform approach across countries gives it a distinct advantage over less scalable peers when bidding for substantial contracts.
3. With the potential to serve 150 countries, Zalaris has fostered deep geographic reach and strong client relationships across a diverse range of industries. Its solutions are utilised by organisations of all types and sizes, from large multinational corporations to municipal governments. This broad industry coverage provides resilience and significant cross-sell potential.
4. With around 80% recurring revenue, a low churn rate of c 3% and an average contract duration of five years, Zalaris has predictable cash flows and clear earnings visibility due to its long-lasting customer relationships.
5. There is substantial room for margin expansion and earnings growth, with management targeting 10% annual growth and a 500bp improvement in EBIT margins by 2026 through operating leverage and efficiency gains.

Zalaris is a market leader exposed to structurally growing demand for payroll and HR solutions globally. With resilience, strong client retention and visible earnings growth, it shapes up as an exciting investment case.