Last close As at 05/08/2026
EUR15.00
— 0.00 (0.00%)
Market capitalisation
EUR709m
Research: TMT
Tinexta’s proposal sale of its Credit Information & Management (CIM) division is significant from a financial and strategic perspective. With respect to the former, the remaining group should demonstrate higher aggregate pro forma revenue and profit growth and it will have significantly improved financial fire power to pursue further M&A in the higher-growth business units. Strategically, it removes a business that has low exposure to the thematic growth driver of a digitising economy, limited overlap and potential for cross-selling with the other divisions, and above-average (versus the rest of the group) GDP sensitivity. Our forecasts are unchanged ahead of the expected completion in H222.
Tinexta |
Rebalancing toward higher growth |
Proposed disposal of CIM |
Professional services |
6 June 2022 |
Share price performance
Business description
Analysts
Tinexta is a research client of Edison Investment Research Limited |
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Tinexta’s proposal sale of its Credit Information & Management (CIM) division is significant from a financial and strategic perspective. With respect to the former, the remaining group should demonstrate higher aggregate pro forma revenue and profit growth and it will have significantly improved financial fire power to pursue further M&A in the higher-growth business units. Strategically, it removes a business that has low exposure to the thematic growth driver of a digitising economy, limited overlap and potential for cross-selling with the other divisions, and above-average (versus the rest of the group) GDP sensitivity. Our forecasts are unchanged ahead of the expected completion in H222.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
269.0 |
58.4 |
0.86 |
0.26 |
30.2 |
1.0 |
12/21 |
375.4 |
70.4 |
1.04 |
0.30 |
25.0 |
1.2 |
12/22e |
446.8 |
87.0 |
1.16 |
0.31 |
22.4 |
1.2 |
12/23e |
500.2 |
105.5 |
1.43 |
0.40 |
18.1 |
1.5 |
12/24e |
558.6 |
122.9 |
1.69 |
0.48 |
15.4 |
1.9 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The proposed sale of CIM (mainly the Innolva and ReValuta subsidiaries) to a key competitor, CRIF, combines the number two and three players in the market and continues the long-anticipated consolidation of the market. Market leader Cerved was acquired in 2021 by a new entrant. Tinexta will retain its holding in ForValue, with expectations it will continue to provide new revenues for the Innovation and Marketing Services division, as previously, and management foresees opportunities for collaborations between the larger CRIF and Tinexta’s other divisions.
The proposed disposal valuation of €237.5m represents an implied valuation of 10.8x FY21 adjusted EBITDA, which, according to management, is in the ‘premium area’ compared to most recent benchmarks in Italy.
CIM represented c 20% of group revenue and 22% of adjusted EBITDA in FY21. Historically it produced the lowest organic revenue growth (declines in four of the last six financial years) of Tinexta’s divisions, and according to recent guidance was expected to demonstrate the lowest revenue growth in FY22–24 (6% CAGR excluding ForValue) relative to the other divisions. Notwithstanding the revenue performance, management managed costs very well such that profitability increased (adjusted EBITDA margin FY21 c 29% versus FY16 c 18%).
The proposed disposal tilts Tinexta’s growth to divisions with more attractive expected growth rates. Management’s expected organic revenue CAGRs during FY22-24 for Digital Trust (32% of FY21 pro forma revenue), Cyber Security (24%) and Innovation & Marketing Services (44%) are 10%, 19% and 7% respectively.
Management’s estimate of pro forma FY22 net debt/EBITDA of 0.4x (2.26x end Q122) ensures Tinexta is well positioned to continue its strategy of diversifying its services offered and expanding its services geographically.
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Research: Financials
CoinShares International (CS) operated under difficult market conditions in Q122, marked by lower digital asset prices versus Q421, muted market volatility and trading volumes, as well as a flat term structure. This has reduced the assets under management (AUM) of its exchange traded products (ETP) and, in turn, management fees versus Q421 (although fees were broadly stable y-o-y). It also meant scarcer opportunities for CS’s delta neutral and fixed income strategies, which were only partially offset by solid decentralised finance (DeFi) income. We note however, that CS will report a £17m exceptional loss in Q222 arising from its exposure to the Anchor protocol due to the collapse of the UST stablecoin.