Artec technologies — A solid FY20, uncertainties persist for FY21

artec technologies (GR: A6T)

Last close As at 18/05/2024

2.60

0.06 (2.36%)

Market capitalisation

8m

More on this equity

Research: TMT

Artec technologies — A solid FY20, uncertainties persist for FY21

In FY20, artec increased sales by 53% to €3.1m despite the COVID-19 pandemic, with positive EBITDA of €0.33m. Recurring revenues rose to €0.75m, with the company targeting €1m by FY22. artec reported 11% l-f-l sales growth for Q121 but, with sales heavily skewed to Q4, the outlook for FY21 is far from clear due to the lingering effects of the pandemic and hardware supply issues from an industry-wide semiconductor shortage. At year end, artec had cash on the balance sheet of €0.47m. Management remains confident in the outlook for both the media and security segments in the medium term, but security is its key focus for FY21.

Analyst avatar placeholder

Written by

TMT

artec technologies

A solid FY20, uncertainties persist for FY21

Technology

Scale research report - Update

2 June 2021

Price

€3.81

Market cap

€11m

Share price graph

Share details

Code

A6T

Listing

Deutsche Börse Scale

Shares in issue

2.86m

Net debt at 31 December 2020

€0.1m

Business description

artec technologies develops cloud-based software solutions for the recording and analysis of video and audio, in two sectors: video security technology and crime prevention; and broadcast media.

Bull

Strong start to H120, with management maintaining guidance for FY20 profitability.

Growing list of reference clients in the security sector across the DACH region.

IP-based, patent-protected technology solutions.

Bear

Scale and growth potential limited by operational and resourcing constraints.

Revenue visibility remains restricted.

Volatile trading history, with financial outcome subject to contract delays.

Analyst

Richard Williamson

+44 (0)20 3077 5700

In FY20, artec increased sales by 53% to €3.1m despite the COVID-19 pandemic, with positive EBITDA of €0.33m. Recurring revenues rose to €0.75m, with the company targeting €1m by FY22. artec reported 11% l-f-l sales growth for Q121 but, with sales heavily skewed to Q4, the outlook for FY21 is far from clear due to the lingering effects of the pandemic and hardware supply issues from an industry-wide semiconductor shortage. At year end, artec had cash on the balance sheet of €0.47m. Management remains confident in the outlook for both the media and security segments in the medium term, but security is its key focus for FY21.

FY20 results: 53% y-o-y increase in revenues

FY20 turnover increased by 53% to €3.1m (FY19: €2.0m) despite the COVID-19 pandemic, with positive EBITDA of €0.33m (FY19: loss of €0.15m). Due to ongoing travel restrictions and the cancellation of trade fairs, other operating expenses fell by 11% to €0.64m (FY19: €0.72m), with personnel costs rising by 11% to €1.47m (FY19: €1.36m) due to new hires. PAT rose to €0.17m (FY19: €0.0m) with EPS of €0.06 per share (FY19: €0.44 loss per share); the positive EPS outcome was influenced by the capitalisation of deferred taxes in FY20 of €0.41m (FY19: negative €0.52m). With net debt of €0.1m and cash and undrawn facilities of €0.8m, the business remains well placed to benefit from opportunities in FY21 and beyond.

Strong Q121, but FY21 outlook still unclear

artec reported 11% l-f-l sales growth for Q121, but the outlook for FY21 is far from clear with annual sales heavily skewed to Q4 (Q420 was c 60% of FY20 sales), given the lingering effects of the pandemic, continuing travel restrictions and increasing concerns over hardware supply as a result of the industry-wide semiconductor shortages. As a result, management expects further progress in 2021, but is not in a position to provide revenue guidance for FY21.

Valuation: Growing base of recurring revenues

Artec delivered a resilient performance in FY20 and the group’s prospects in the medium term remain strong. However, in our opinion given both the continuing impact of the pandemic and semiconductor shortages, consensus forecasts for FY21 might look optimistic. Artec trades on 3.7x consensus FY20 EV/revenues and 34x EV/EBITDA, falling to 24x FY22e EV/EBITDA. If management can leverage artec’s market position in both security and media to operate closer to capacity, there is scope for sustained profitability as the group’s recurring revenue base grows. This could lead to profit progression and a share price uplift over the medium term, assuming artec trades in line with its European software peer group.

Consensus estimates

Year
end

Revenue
(€m)

EBITDA
(€m)

EPS
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/19

2.01

(0.16)

(0.42)

0.0

N/A

N/A

12/20

3.08

0.33

0.06

0.0

63.5

N/A

12/21e

4.30

0.46

0.05

0.0

76.2

N/A

12/22e

5.59

0.84

0.16

0.0

23.8

N/A

Source: artec technologies accounts, Refinitiv

Edison Investment Research provides qualitative research coverage on companies in the Deutsche Börse Scale segment in accordance with section 36 subsection 3 of the General Terms and Conditions of Deutsche Börse AG for the Regulated Unofficial Market (Freiverkehr) on Frankfurter Wertpapierbörse (as of 1 March 2017). Two to three research reports will be produced per year. Research reports do not contain Edison analyst financial forecasts.

Specialist in video security and media analysis

artec technologies is a specialist technology company, developing innovative solutions for recording and analysing video, audio and metadata on networks and in the cloud. It offers an end-to-end service, including project planning, commissioning, service and support, incorporating both hardware and software solutions. With a modular structure, its open software architecture enables a wide range of connection and expansion options. artec’s technology set is constantly evolving, with its 20 qualified and experienced computer scientists working to innovate and deliver new products into the market through R&D.

The company operates in two market segments with separate products, based around the same core technology: video security (MULTIEYE) targets state security agencies and public authorities in the DACH countries, while media analysis systems (XENTAURIX) targets the European and international broadcast media sector. TV and radio stations, IPTV and cable operators use XENTAURIX as long-term video recorders for legal proof of broadcasting (compliance). TV stations also use the system to create video clips for their media libraries and to analyse TV viewer ratings.

artec offers a buy, build, partner approach to technology. As well as developing its own IP, artec also partners with third-party software vendors to bolt on established solutions to its MULTIEYE and XENTAURIX platforms. Third-party modular technologies integrated with its platforms include number plate recognition, facial recognition, sentiment analysis, ratings analysis, video fingerprinting and centralised administration of mobile systems. The platform also incorporates artificial intelligence (AI) from Finnish AI specialist Valossa.

Customers typically sign long-term (three- to four-year) contracts with the software installed on-site. artec also offers a pay-as-you-go (PAYG) cloud-based model, where customers upload videos to artec’s cloud-based platform for analysis. The PAYG solution involves minimal investment from the customer, whereas in-house solutions typically require a tender. artec anticipates monthly revenues in the range of €1–25k per PAYG customer as against typical one-off implementation costs of €0.1–1.5m. Monthly recurring revenues are attractive as they offer predictability and aggregate revenues over a multi-year period tend to be higher than for one-off sales, but revenues can be adversely affected in the short term as the recurring revenues build (€0.75m in FY20).

FY20 results: A step-up from FY19

After a slightly disappointing FY19, artec produced an improved FY20 sales and earnings performance. Turnover increased by 53% to €3.1m (FY19: €2.0m) despite the COVID-19 pandemic, with positive EBITDA of €0.33m (FY19: loss of €0.16m), PAT of €0.17m (FY19: €0.0m) and EPS of €0.06 per share (FY19: €0.44 loss per share). Including capitalised R&D development costs, total output in FY20 was €3.5m, a 39% rise on FY19 (€2.5m). The cost of materials increased 74% to €1.12m (FY19: €0.64m), reflecting the higher proportion of sales in the security sector, including complete systems with a higher hardware component. Due to ongoing travel restrictions and the cancellation of trade fairs, other operating expenses fell by 11% to €0.64m (FY19: €0.72m), with personnel costs increasing by 11% to €1.47m (FY19: €1.36m) following new hires.

artec’s positive EPS outcome was significantly influenced by the capitalisation of deferred taxes in FY20 of €0.41m (FY19: negative €0.52m), with the positive contribution reflecting the stronger demand outlook for security products and the company’s growing order book.

artec has an equity ratio of 84.4% and, with net debt of €0.1m and cash and undrawn facilities of €0.8m, the business remains relatively well capitalised to benefit from the opportunities in FY21 and beyond.

Exhibit 1: Financial summary

€000s, HGB

FY15

FY16

FY17

FY18

FY19

FY20

INCOME STATEMENT

Revenue

3,469

2,475

1,462

2,936

2,010

3,080

Operating profit (loss)

637

(415)

(776)

33

(683)

(238)

Operating margin

18.4%

(16.8%)

(53.1%)

1.1%

(33.4%)

(7.7%)

Pre-tax profit (loss)

636

(414)

(782)

28

(677)

(233)

EPS (€)

0.22

(0.13)

(0.33)

0.01

(0.42)

0.06

DPS (€)

-

-

-

-

-

-

BALANCE SHEET

Total non-current assets

1,461

1,959

2,196

2,433

2,614

2,717

Total current assets

1,827

1,905

1,312

1,713

1,322

1,894

Total assets

3,288

3,864

3,508

4,146

3,936

4,610

Total non-current liabilities

(57)

(71)

(83)

(93)

(73)

(63)

Total current liabilities

(202)

(90)

(523)

(174)

(145)

(645)

Total liabilities

(259)

(161)

(606)

(267)

(218)

(708)

Net assets

3,029

3,703

2,902

3,879

3,718

3,903

CASH FLOW

Net cash from operating activities

963

(290)

208

(136)

169

121

Net cash from investing activities

(506)

(706)

(595)

(617)

(700)

(669)

Net cash from financing activities

(218)

989

154

798

1,023

476

Net cash flow

239

(7)

(233)

45

492

(72)

Cash & cash equivalents at end of year

240

233

0

46

538

466

Source: artec technologies accounts

artec currently reports under the accounting regulations of the German Commercial Code (HGB). Although no final decision has yet been taken, management is considering reporting its financials under International Financial Reporting Standards (IFRS), in addition to HGB, to help provide international investors with a clearer view of the company’s financial position.

Recurring revenues continue to build

Artec continues its transformation towards software and cloud services in both security and media segments. In FY20, artec reported recurring revenues of €0.75m (FY19: €0.25m) (with a term of up to four years), representing c 25% of FY20 turnover (FY19: 12.5%) and beating its FY20 target of €0.5m. Recurring revenues are expected to grow further, with the company targeting €1m by FY22. This growth will have a negative impact on revenue and profit progression in the short term, but will benefit medium-term revenues and profitability. Management expects further progress in 2021 but, given the current uncertainties (the continuing pandemic, travel restrictions and hardware supply issues), is not in a position to provide revenue guidance for FY21.

Lingering impact of the pandemic raises FY21 uncertainty

The impact of the COVID-19 pandemic is still being felt, in particular by artec’s international business, where sales have suffered from travel restrictions and the absence of trade fairs. Increasingly, issues around the industry-wide shortage of semiconductors have created capacity bottlenecks that remain a concern for timely delivery of hardware components in FY21. Management is actively managing the issue, swapping hardware components and building up stock to ensure continuity of supply. As a result of the drawn-out sales cycle, slow contract awards and hardware shortages slowing contract execution, we believe that there is a risk that a proportion of Q421 revenue may slip into FY22. The company may also need to increase its borrowings to fund a likely rise in inventory build-up.

Business review: A resilient and balanced group

Demand for artec’s services has remained robust, with its diversified business model meaning that the group has continued to make progress: focusing on security solutions for government clients in the DACH region, while also offering scalable cloud/SaaS solutions to the media sector internationally. Despite the impact of COVID-19, the company has continued to operate at full capacity (with no furloughing of staff/short-time working), while investing in business development.

artec’s customers include both German and international companies, including eight of the 14 German federal media authorities. artec has also signed contracts worth €0.2m with security authorities in the DACH region. Following a sales drive in FY19 and FY20, artec has built a significant order book, with further interest received from clients in the Middle East, although international business, particularly in the Middle East, has been difficult to finalise in the absence of face-to-face meetings.

In FY20, two-thirds of artec’s business was in video security, with one-third in media and broadcast. Video security revenues are highly localised and defensible and have held up well under the challenging economic environment that persists, with artec well-established in its target market. In the medium term the media business has strong growth prospects with the adoption of artec’s cloud solution and market share gains from the departure of Verizon Volicon. However, with trade fairs cancelled and business development constrained by the pandemic, we do not expect a material pick-up in sales in FY21 (although consensus anticipates a 39% rise in sales in FY21). We expect a similar balance between video security and media and broadcast revenues in FY21 as in FY20.

Highlighting the modular and flexible nature of artec’s technology solution, management has launched a series of evolutionary new products in FY20, attracting new clients:

MULTIEYE NEXT: a market-leading, client-operated video management system, including AI-based video analysis, and encrypted recording and transmission for the private sector. The system supports multi-monitor operation as well as a fully automated video display wall. In partnership with an international infrastructure and security company, artec received its first order to equip situation centres for highway monitoring in Slovakia. Further contracts with this same partner are in the pipeline.

MULTIEYE BOS Manager: artec developed MULTIEYE BOS Manager for situation centres and security control centres (‘BOS’ in German). The first client to use the solution, a federal authority, has been trialling it since Q120 and artec has recently received a follow-on order worth c €400–500k to roll out the platform more widely in FY20.

Despite the challenging economic environment, artec has a robust pipeline of new business in both broadcast and security segments, including multi-year, multi-million-euro contracts with key federal security clients. As such, management remains confident in the outlook for the business.

Valuation: Upside potential in the medium term

artec has no clear peers; however, with strong revenue growth and a positive outlook, the quoted European software peer group typically trades in a range of c 4–5x EV/sales and 15–20x EV/EBITDA. Palantir, a US data-mining company predominantly serving US defence agencies, that is now starting to move into the UK and Europe, offers parallels to the security side of artec’s business and trades on c 100x consensus FY21 EV/EBITDA. Another US business, Veritone, operates a similar model to artec, integrating third-party solutions into its platform, but is expected to be significantly loss making for the foreseeable future, yet trades on c 10x FY20 revenues.

Artec delivered a resilient performance in FY20 and the group’s prospects in the medium term remain strong. However, in our opinion given both the continuing impact of the pandemic and semiconductor shortages, consensus forecasts for FY21 might look optimistic. Artec trades on 3.7x consensus FY20 EV/revenues and 34x EV/EBITDA, falling to 24x FY22e EV/EBITDA. If management can leverage artec’s market position in both security and media to operate closer to capacity, there is scope for sustained profit progression as the group’s recurring revenue base grows. This could lead to a share price uplift over the medium term, assuming artec trades in line with its European software peer group.


General disclaimer and copyright

Any Information, data, analysis and opinions contained in this report do not constitute investment advice by Deutsche Börse AG or the Frankfurter Wertpapierbörse. Any investment decision should be solely based on a securities offering document or another document containing all information required to make such an investment decision, including risk factors. This report has been commissioned by Deutsche Börse AG and prepared and issued by Edison for publication globally.

Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

Any Information, data, analysis and opinions contained in this report do not constitute investment advice by Deutsche Börse AG or the Frankfurter Wertpapierbörse. Any investment decision should be solely based on a securities offering document or another document containing all information required to make such an investment decision, including risk factors. This report has been commissioned by Deutsche Börse AG and prepared and issued by Edison for publication globally.

Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on artec technologies

View All

Latest from the TMT sector

View All TMT content

Research: TMT

Beta Systems Software — Lower H1 results, but within guidance

Beta Systems, a software provider for data centre intelligence and identity access management, has reported weaker H1 results to March. Due to lower contract renewals in the DCI unit, FY21 EBITDA is expected to decrease, but this is guided to reverse next year. As a smaller player in the sector, Beta Systems trades at a discount of 54% versus international peers on an FY22 EV/EBITDA basis.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free