Datron — Benefiting from returning demand

Datron (DB: DAR)

Currency in

Last close As at 30/01/2023

0.30 (2.61%)

Market capitalisation

48m

Research: Industrials

Datron — Benefiting from returning demand

A strong year-on-year rebound in Datron’s H121 figures reflects the continuous recovery of economic conditions and customer confidence. After posting a solid order intake in Q221, management revised up its full-year guidance in July 2021. Datron’s performance should be further assisted by improving sentiment in the broader market, reflected in the upward revision of the forecast growth in production output of the German machine tools industry in 2021 to 8% y-o-y (from 6% expected earlier this year), issued by the German Machine Tool Builders’ Association (VDW) in August 2021.

Milosz Papst

Written by

Milosz Papst

Director, Financials

Industrials

Datron

Benefiting from returning demand

Industrials

Scale research report - Update

3 September 2021

Price

€11.5

Market cap

€46m

Share price graph

Share details

Code

DAR

Listing

Deutsche Börse Scale

Shares in issue

4.0m

Net cash at end-H121

€13.4m

Business description

Datron is a long-established provider of innovative CNC milling machines, dental milling machines, dosing machines and milling tools.

Bull

Improving market sentiment amid broader economic recovery.

Solid balance sheet.

Recurring income from aftersales has been increasing over recent years and helped mitigate market headwinds during the COVID-19 market slowdown.

Bear

A cyclical business, which could suffer from another COVID-19 induced downturn.

Risk of supply bottlenecks and high cost inflation.

Small size relative to global market.

Analysts

Milosz Papst

+44 (0)20 3077 5700

Anna Dziadkowiec

+44 (0)20 3077 5700

A strong year-on-year rebound in Datron’s H121 figures reflects the continuous recovery of economic conditions and customer confidence. After posting a solid order intake in Q221, management revised up its full-year guidance in July 2021. Datron’s performance should be further assisted by improving sentiment in the broader market, reflected in the upward revision of the forecast growth in production output of the German machine tools industry in 2021 to 8% y-o-y (from 6% expected earlier this year), issued by the German Machine Tool Builders’ Association (VDW) in August 2021.

Increased economic activity fuels growth in H121

After a weak FY20, affected by the COVID-19 pandemic, Datron’s EPS improved to €0.42 in H121 from €0.07 in H120 (vs €0.32 in H119). The EBIT margin stood at 8.9% in H121 (vs 1.5% in H120 and 7.0% in H119), assisted by a particularly strong Q221 at 11.1%. Datron’s sales recovered to €25.7m in H121 from €22.0m in H120 (vs €26.6m in H119), with strong growth across the largest segments (though likely including some pent-up demand), supported by the recurring revenue from the ‘After sales and other’ segment (c 20% of its sales in H121). Order intake increased 36% y-o-y to €27.6m in H121 and was ahead of the €26.6m in H119, backed by a broader economic recovery.

Management full-year guidance revised upwards

Management raised its full-year guidance in July 2021 after posting a strong Q221 order intake (€15.5m vs management forecast of €12.5–14.0m). The company now guides to FY21 sales of €47–50m (vs c €42m in FY20 and c €54m in FY19), an EBIT margin of 6–8% (vs 5.1% and 7.2%, respectively) and EPS of €0.50–0.75 (€0.37 and €0.70, respectively). In Q321, Datron expects sales and order intake of €11.5–13.0m and EBIT of €0.4–1.0m, translating into an EBIT margin of c 6% at the midpoint of this guidance. Management forecasts assume that the COVID-19 pandemic will not worsen, and supply chains will remain uninterrupted.

Valuation: Reflecting an improving outlook

Datron’s share price has appreciated by 31% in 2021 to 2 September 2021, reflecting its solid performance in H121 and an improving economic outlook. The company’s FY21e P/E of 19.2x and EV/EBITDA of 7.5x on Refinitiv consensus estimates imply 35% and 18% discounts, respectively, to medians for its peer group.

Consensus estimates

Year
end

Revenue
(€m)

PBT
(€m)

EPS
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/19

53.8

3.9

0.7

0.1

16.4

0.9

12/20

42.1

2.1

0.4

0.05

28.8

0.4

12/21e

48.5

3.4

0.6

0.2

19.2

1.7

12/22e

55.8

4.0

0.7

0.15

16.4

1.3

Source: Datron, Refinitiv consensus (based on the estimates of one analyst).

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.

H120 results reflect improving market conditions

After a weak FY20 affected by the COVID-19 pandemic, Datron’s sales increased 17% y-o-y to €25.7m in H121 (vs €26.6m in H119), including €11.4m posted in Q121 and €14.3m in Q221. The latter figure was likely assisted by pent-up demand. Its three major segments recorded double-digit sales growths in H121, including the largest ‘Datron machines’ (c 57% of sales in H121), where revenues were up 13% y-o-y to €14.7m. While sales in the ‘Datron machines’ and ‘CNC/Dental milling tools’ segments were still lower than in H119 (before the COVID-19 pandemic), this was partly offset by the dynamic revenue growth in the ‘After sales and other’ segment (where sales are largely recurring). Revenues in Germany, Datron’s largest market (c 47% of sales in H121), grew 12% y-o-y to €11.4m in H121. Positive contributions to sales came also from other geographies except for ‘other Europe’ (ie European countries outside the EU, including Russia), where sales declined 26% y-o-y to €1.7m in H121 as growth in Russia was more than offset by the weakness of other countries, according to management.

The EBIT margin improved to 8.9% in H121 (from 1.5% in H120 and 7.0% in H119) after it reached 6.3% in Q121 (vs 1.3% in Q120 and 4.4% in Q119) and 11.1% in Q221 (vs 1.8% in Q220 and 9.5% in Q219). This was despite a 15% y-o-y rise in total operating costs to €25.1m in H121, affected by higher material and personnel expenses (up 29% y-o-y and 15% y-o-y, respectively). We note that the growth in total operating costs was from a low H120 base, including personnel expenses as Datron resumed a full-time work setup in April 2021. Last year, personnel expenses were lower due to shortened working hours during the COVID-19 outbreak as headcount remained broadly stable year-on-year (281 on average in H121 vs 278 in H120). Other operating expenses declined by 17% y-o-y to €3.1m in H121, largely due to lower delivery costs as well as advertising and travel costs in the COVID-19 pandemic. Consequently, EPS reached €0.42 in H121 vs €0.07 a year earlier.

Datron’s balance sheet remains solid, with gross cash of €14.2m at end-H121 (vs €13.1m at end-FY20) and liabilities to banks at a minor €0.8m (€0.6m). In April 2021, the company bought back 50k shares (or c 1.25% of its current share capital) at a price of €9.30 per share. Although the size of the buyback and dividend pay-out is moderate, we believe it shows management’s confidence in the company’s liquidity position.

Exhibit 1: Financial performance

HGB figures in €000s unless otherwise stated

H121

H120

change y-o-y

H119

Revenue

25,663

21,988

17%

26,584

o/w Datron machines (mainly CNC milling)

14,650

12,941

13%

16,525

o/w CNC/Dental milling tools

5,584

4,780

17%

5,434

o/w After sales and other

5,158

4,267

21%

4,289

o/w Other*

271

319

-15%

335

Change in stocks

1,704

177

N/M

711

Other operating income

12

37

-68%

127

Material costs

(11,999)

(9,293)

29%

(11,596)

Personnel costs

(9,355)

(8,141)

15%

(9,025)

Other operating costs

(3,149)

(3,789)

-17%

(4,322)

Depreciation

(582)

(640)

-9%

(608)

EBIT

2,294

340

N/M

1,871

Profit before taxes

2,344

376

N/M

1,880

Income tax

(667)

(100)

N/M

(607)

Other taxes

(6)

(7)

-16%

(5)

Net income

1,671

268

N/M

1,268

Minorities adjustment

(84)

38

N/M

20

Net income ex minorities

1,587

307

N/M

1,287

EPS (€) - reported

0.42

0.07

N/M

0.32

Source: Datron accounts, Edison Investment Research. Note: *Other revenues as per BiLRUG (the German Accounting Directive Implementation Act).

Order intake increased 36% y-o-y to €27.6m in H121, supported by a solid €15.5m in Q221, which exceeded management expectations of €12.5–14.0m for the period. Datron’s order intake in H121 was also slightly ahead of the €26.6m in H119. The book-to-bill ratio was 1.09x in H121 (vs 0.94x in H120 and 1.01x in H119). While the year-on-year growth in order intake in H121 was below the broader German machine tools industry (up 57% y-o-y, according to VDW), we note that this may be due to a less severe decline at Datron compared to the market in 2020 in terms of revenue (down 22% vs 31% according to VDW data, respectively) and order intake (down 20% and 30%, respectively).

Management raises FY21 guidance after a solid Q221

After a strong order intake in Q221, the company raised its full-year guidance for sales to €47–50m (vs €44.5–48.5m in its previous forecast released in June 2021), EBIT margin to 6–8% (5–7.5%) and EPS to €0.50–0.75 (€0.40–0.65) in July 2021. Management guidance assumes that COVID-19 pandemic will not worsen, and supply chains will remain uninterrupted. The company’s guidance at the midpoint implies H221 sales slightly lower than in H121 (translating into c 15% yoy growth in total sales in FY21) as well as lower EBIT margin and EPS in H221 (c 4.8% and €0.21, respectively, according to our calculations). VDW expects a further recovery in demand in 2021 and in August 2021; it raised its production forecast for the German machine tools industry in 2021 to 8% from the 6% expected earlier. This would bring the production volume to €13.2bn in 2021, compared with the peak result of €17bn in 2018/2019, according to VDW. For Q321, Datron guides to sales and order intake of €11.5–13.0m and EBIT of €0.4–1.0m, translating into an EBIT margin of c 6% at the midpoint of this guidance.

Exhibit 2: Historical performance and management guidance

€m unless otherwise stated

Q121

Q221

Q321 – management guidance

FY21 – management guidance

FY20 – reported

FY19 – reported

Total sales

11.4

14.3

11.5–13.0

47–50

42.1

53.8

EBIT

0.7

1.6

0.4–1.0

3.3*

2.1

3.9

EBIT margin (%)

6.3

11.1

5.7%*

6–8%

5.1%

7.2%

EPS (€)

0.12

0.30

N/A

0.50–0.75

0.37

0.70

Order intake

12.1

15.5

11.5–13.0

47–50

42.4

53.2

Source: Datron, Edison Investment Research. Note: *Edison calculations based on midpoints of company's guidance.

Valuation

We believe that Datron’s closest peers are Hermle and DMG Mori, though these are much larger companies as illustrated by their market capitalisation. Thus, we have supplemented our peer group with smaller companies engaged in the machinery industry, including Prima Industries and Biesse (both Italy based), Meier Tobler and Starrag Group (both based in Switzerland) and Nicolas Correa (Spain).

Datron is currently trading on an FY21e P/E multiple of 19.2x and an FY21e EV/EBITDA multiple of 7.5x, on Refinitiv consensus estimates, which implies a discount to its peer group medians of 35% and 18%, respectively. The discounts narrow to 10% for the P/E multiple and 5% for the EV/EBITDA multiple in FY22e. We note that Refinitiv consensus on Datron is based on the estimates of one analyst.

Exhibit 3: Peer group comparison

Company name

Market cap local ccy (m)

P/E (x)

EV/EBITDA (x)

Dividend yield (%)

2020

2021e

2022e

2020

2021e

2022e

2020

2021e

2022e

DMG Mori

¥258,457

153.5

29.4

12.9

10.1

7.3

5.0

1.0

1.3

2.4

Hermle

€1,395

35.6

31.5

20.6

N/A

N/A

N/A

1.8

2.2

3.6

Biesse Spa

€839

133.8

27.8

25.3

17.4

10.3

8.9

0.6

1.6

1.4

Prima Industrie

€216

N/M

29.5

13.8

13.4

9.0

6.5

0.0

0.3

1.3

Meier Tobler

CHF237

60.0

26.1

18.1

10.9

9.5

8.8

0.0

2.5

3.7

Starrag Group

CHF161

154.8

38.1

18.0

16.1

11.5

7.2

0.0

0.0

2.1

Nicolas Correa

€71

11.8

11.6

10.5

8.2

7.6

6.7

2.9

2.9

3.0

Peer group median

96.9

29.4

18.0

12.2

9.2

7.0

0.6

1.6

2.4

Datron

€46

31.1

19.2

16.2

10.8

7.5

6.6

0.4

0.9

1.3

Premium/(discount)

(68%)

(35%)

(10%)

(11%)

(18%)

(5%)

(28%)

(45%)

(45%)

Source: Refinitiv data at 3 September 2021. Note: Refinitiv consensus for Datron is based on the estimates of one analyst.


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

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. 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

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. 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 Datron

View All

Industrials

Datron — Benefiting from returning demand

Industrials

Datron — Recovering after a challenging FY20

Industrials

Datron — Market headwinds persist

Industrials

DATRON — Facing a distressed market

Latest from the Industrials sector

View All Industrials content

Research: Financials

Lloyd Fonds — Healthy organic AUM expansion

In H121, Lloyd Fonds (LF) expanded its assets under management (AUM) within the new core business to €1.97bn (from €1.66bn at end-2020) and it is aiming for €2.4bn by end-2021. While its recent growth was organic, LF continues to search for attractive acquisition targets within the wealth management segment with AUM of at least €1bn. In June 2021, LF launched a c €5m offering of participation rights in LAIC Capital, in the form of blockchain-based tokens, with proceeds expected to assist further development of its highly digitalised business segment. On the back of this multi-factor growth, LF still targets €7bn AUM in 2024 and an EBITDA margin of 45%.

Continue Reading

Subscribe to Edison

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

Sign up for free