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Currency in EUR
Last close As at 24/03/2023
EUR20.20
▲ −0.40 (−1.94%)
Market capitalisation
EUR972m
Research: TMT
Tinexta reported a good start to the year with continued strong organic revenue growth in Q122. This was further boosted by first-time contributions from acquisitions completed through FY21 and into FY22, which were also helpful to the total margin. Management re-iterated its financial guidance for FY22 while recognising the greater macroeconomic and inflationary pressures than when the guidance was made earlier in the year. The recent share price weakness means the stock is trading at a substantial discount to our unchanged DCF-based valuation of €42/share.
Tinexta |
Encouraging start to FY22 |
Q122 results |
Professional services |
11 May 2022 |
Share price performance
Business description
Next events
Analysts
Tinexta is a research client of Edison Investment Research Limited |
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Tinexta reported a good start to the year with continued strong organic revenue growth in Q122. This was further boosted by first-time contributions from acquisitions completed through FY21 and into FY22, which were also helpful to the total margin. Management re-iterated its financial guidance for FY22 while recognising the greater macroeconomic and inflationary pressures than when the guidance was made earlier in the year. The recent share price weakness means the stock is trading at a substantial discount to our unchanged DCF-based valuation of €42/share.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
269.0 |
58.4 |
0.86 |
0.26 |
26.9 |
1.1 |
12/21 |
375.4 |
70.4 |
1.04 |
0.30 |
22.4 |
1.3 |
12/22e |
446.8 |
87.0 |
1.16 |
0.31 |
19.7 |
1.4 |
12/23e |
500.2 |
105.5 |
1.43 |
0.40 |
15.9 |
1.7 |
12/24e |
558.6 |
122.9 |
1.69 |
0.48 |
13.5 |
2.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Q122: Organic growth and M&A contribution
Tinexta’s revenue grew by 16% y-o-y to €96.0m and adjusted EBITDA by 13% to €19.2m in Q121. Organic revenue growth of 7.0% was broad-based (all divisions except Credit Information & Management (CIM) grew year-on-year) despite the challenging comparative provided by Q121. Acquisitions were important contributors in the period, adding 9% to revenue growth and 15% to adjusted EBITDA growth, implying higher margins than the group average. The period end net debt position improved to €228.4m (€263.3m at end FY21) as stable absolute free cash flow generation and the initial proceeds from the Bregal investment (€70m) more than offset M&A spend (€59m) in the period.
FY22: Management reiterates guidance
Management reiterated its recent guidance for FY22 (total revenue growth of 18–20% and adjusted EBITDA growth of 20–22%). With inflationary pressures greater than when the guidance was initially provided, management indicated it is confident these are limited (staff costs) and/or manageable (external suppliers) in FY22. Management highlighted Tinexta has no direct exposure to Russia and Ukraine but noted there may be secondary effects from clients’ exposure as well as the expected wider economic weakness given the sensitivity to overall GDP growth rates in a number of group companies, mainly CIM and Innovation & Marketing Services (IMS). We upgraded our forecasts modestly (FY22 EBITDA by 1%) to reflect the acquisition of Enhancers in March 2022.
Valuation: Discount to DCF and SOTP valuations
The recent de-rating of the share price makes prospective multiples more attractive versus Tinexta’s history when considering management’s expectations for future revenue and profit growth. EV/EBITDA multiples for FY22–24 of 11.2x, 9.7x and 8.6x compare with its average multiple of 7.8x (FY17–19 ie pre COVID-19) and peak multiples of 10.3x. Our DCF-based valuation of c €42/share is unchanged.
Q122 results: Important contribution from M&A
Tinexta continued to enjoy good momentum into Q122 with organic revenue growth of 7.0%. The period had a tough comparative from Q121 when organic revenue growth was +17.6%, albeit that period had an easier comparative of -8.4% due to the outbreak of the COVID-19 pandemic in Q120. Following a high level of M&A through FY21 and the start of FY22, the first-time contributions from these acquisitions (Forvalue acquired July 2021, CertEurope acquired November 2021 and Evalue acquired January 2022) made an important contribution, adding a further c 9% growth to give total revenue growth of c 16% to €96.0m.
Adjusted EBITDA growth of 13% y-o-y to €189.2m was lower than the above revenue growth, such that the margin reduced modestly to 20.0% from 20.6% in Q121. Underlying adjusted EBITDA declined by 1.6% due to a combination of mix and margin changes for individual businesses. Digital Trust (DT) was the only business unit to demonstrate underlying margin growth during the period; the other business units were affected by tough comparatives including phasing or increased investment. Acquisitions increased adjusted EBITDA growth by c 15% (ie at a higher margin than the underlying group average), to give total growth of 13% to €19.2m. We remind readers that Q1 is typically seasonally less important from a financial perspective, Q122’s delivered revenue represents c 22% of our FY22 (unchanged) forecasts, consistent with Tinexta’s results in prior years.
Further down the income statement, the most significant change was an increase in the tax rate to 33.7% from 19.5% in Q121, which benefitted from non-recurring tax income.
Business unit performance
Exhibit 1: Financial performance
€m |
Q121 |
Q221 |
Q321 |
Q421 |
FY21 |
Q122 |
Group revenue |
82.7 |
95.1 |
83.7 |
113.8 |
375.4 |
96.0 |
Growth y-o-y |
50.5% |
38.2% |
28.7% |
41.9% |
39.5% |
16.2% |
Organic y-o-y |
17.6% |
8.8% |
(1.9%) |
7.8% |
7.7% |
7.0% |
Digital Trust |
31.2 |
32.4 |
29.6 |
38.1 |
131.3 |
38.0 |
Organic y-o-y |
19.4% |
10.9% |
7.1% |
7.7% |
11.0% |
7.7% |
Cyber Security |
16.8 |
17.8 |
16.9 |
21.4 |
72.8 |
18.0 |
Organic y-o-y |
104.2% |
7.1% |
||||
Credit Information & Management |
18.9 |
19.8 |
18.2 |
22.0 |
79.0 |
19.9 |
Organic y-o-y |
10.7% |
8.9% |
(18.2%) |
(7.2%) |
(2.4%) |
(2.9%) |
Innovation & Marketing Services |
16.1 |
25.5 |
19.6 |
33.6 |
94.8 |
21.0 |
Organic y-o-y |
23.5% |
5.2% |
2.9% |
16.4% |
11.3% |
19.4% |
Other |
(0.3) |
(0.5) |
(0.6) |
(1.2) |
(2.6) |
(0.8) |
Group adjusted EBITDA |
17.0 |
25.3 |
21.0 |
35.4 |
98.7 |
19.2 |
Margin |
20.6% |
26.6% |
25.1% |
31.1% |
26.3% |
20.0% |
Growth y-o-y |
54.5% |
5.8% |
(4.5%) |
45.7% |
21.5% |
13.0% |
Digital Trust |
7.2 |
8.4 |
8.6 |
12.2 |
36.4 |
10.4 |
Margin |
23.0% |
26.0% |
29.1% |
32.0% |
27.7% |
27.3% |
Cyber Security |
1.9 |
1.6 |
2.3 |
4.3 |
10.1 |
1.2 |
Margin |
11.5% |
8.7% |
13.8% |
20.0% |
13.9% |
6.5% |
Credit Information & Management |
5.3 |
6.1 |
4.9 |
6.5 |
22.8 |
4.7 |
Margin |
28.0% |
31.0% |
26.9% |
29.4% |
28.9% |
23.4% |
Innovation & Marketing Services |
5.0 |
12.1 |
7.9 |
16.1 |
41.1 |
6.3 |
Margin |
30.9% |
47.6% |
40.1% |
48.0% |
43.3% |
30.2% |
Other |
(2.4) |
(3.0) |
(2.7) |
(3.7) |
(11.7) |
(3.3) |
Source: Tinexta
DT’s revenue grew by c 22% to €38.0m with a significant new contribution from CertEurope (acquired in November 2021) of €4.4m and organic growth of 7.7% against a tough comparative from Q121 of 19.4% as demand normalised following the COVID-19 outbreak in 2020. Management points to strong underlying demand for its core products, some of which is being helped by added functionality from collaboration with the Cyber Security (CS) business unit. There was no information with respect to CertEurope’s underlying growth versus before it was owned by Tinexta, but its performance to date looks supportive of our FY22 revenue estimate of €17m, assuming Q1 is typically a seasonally less important period from a financial perspective as it is for the rest of the division. DT’s EBITDA margin of 27.3% was boosted by the contribution of CertEurope, which has a higher margin (40.6% reported in Q122) than the underlying businesses (25.5%).
CS’s organic revenue growth of 7.1% to €18.0m was stated to be in line with management’s expectations (it believes Q1 is likely to be a seasonally less important period from a financial perspective as it is for Tinexta’s other divisions). The growth was driven by good demand for systems integration and certified email and management is confident that future growth will be supported by the recent launch of important new products and services. Adjusted EBITDA of €1.2m and a margin of 6.5% vs 11.5% n Q121 reflects higher costs to drive a higher margin in future. We note that management’s guidance for CS is average three-year (FY22–24) organic revenue growth of 19% and adjusted EBITDA growth of 31%, implying a significant improvement through the remainder of FY22.
The first-time contribution of Forvalue (acquired July 2021), stated to be in line with management’s expectations, contributed 9% growth to CIM’s total year-on-year revenue growth of c 6% to €19.9m. The underlying revenue decline of c 3% y-o-y and lower adjusted EBITDA margin (23.4% vs 28.0% in Q121) were attributed to the strong demand for access to the Guarantee Fund (Italian government’s financial support following COVID-19) in the prior year. There was no weakness in the real estate business, ReValuta (c one third of divisional revenue in FY21), during the period despite the weaker macroeconomic outlook and higher interest rates. We believe it is reasonable to expect some deterioration in trends here through the year given the weaker macroeconomic trends.
IMS’s total revenue grew by 30% y-o-y to €21.0m, including the first-time contribution of Evalue (acquired 1 January 2022) which added c 11% to growth. There was strong underlying revenue growth (19.4% y-o-y) across the business unit, notably Warrant Hub’s consulting for subsidised finance and training and Co.Mark’s consulting services for exporting with no direct or indirect impact from the war in Ukraine yet. IMS’s profitability is typically volatile through the year due its seasonality (Q2 and Q4 are typically the most significant from a financial perspective) and the differing margin profiles of the individual businesses.
Cash flow and balance sheet
Tinexta finished the period with net debt of €228.4m (2.26x the trailing 12 months (TTM) EBITDA), a good improvement from €263.3m (2.67x TTM EBITDA) at the end of FY21. In absolute terms, free cash flow generation of €24.6m was consistent with Q121’s €24.8m. With revenue in Q122 up 16% y-o-y, the lower cash generation relative to revenue reflects the lower net income margin (lower EBITDA margin and higher tax expense), consistent working capital investment and higher cash tax payments.
Acquisition payments of €58.8m (excluding derivative changes on previous acquisitions) were more than offset by the receipt of Bregal’s first payment of €70m for its investment in InfoCert.
Valuation: More attractive versus historic multiples
The recent reduction in Tinexta’s share price means that its forward multiples are more attractive on an absolute basis. Exhibits 2 and 3 show Tinexta’s prospective EV/EBITDA and P/E (using current enterprise value (EV) and share price) against its historical high, average (indicated) and low multiples in any year (using historical EV and market value, MV).
Tinexta’s EV/EBITDA multiples for FY22–24 of 11.2x, 9.7x and 8.6x compare with its long-run average multiple of 9.9x but this includes some distortion in FY20 and FY21 due to the outbreak of COVID-19. As the company’s revenue growth prospects and profitability improved, from 2017 onwards its multiple averaged 7.8x (FY17–19), but also traded at peak multiples of 10.3x (FY17 and FY19).
Tinexta’s P/E multiples for FY22–24 of 19.7x,15.9x and 13.5x compare with its average multiple (FY17–19) of 11.7x and peak of 17.9x (FY19).
|
Exhibit 2: EV/EBITDA multiple |
Exhibit 3: P/E multiple |
|
|
|
Source: Refinitiv, Edison Investment Research. Note: Priced 17 May 2022. |
Source: Refinitiv, Edison Investment Research. Note: Priced 17 May 2022. |
|
Exhibit 2: EV/EBITDA multiple |
|
|
Source: Refinitiv, Edison Investment Research. Note: Priced 17 May 2022. |
|
Exhibit 3: P/E multiple |
|
|
Source: Refinitiv, Edison Investment Research. Note: Priced 17 May 2022. |
The recent stock market weakness has led to a de-rating of the quoted peers that we use in our sum-of-the-parts (SOTP) valuation for Tinexta.
Exhibit 4: Peer valuations
Company |
Share price (local) |
Currency |
Market cap (€m) |
Sales growth '22 (%) |
Sales growth '23 (%) |
EBITDA growth '22 (%) |
EBITDA growth '23 (%) |
EBITDA margin '22 (%) |
EBITDA margin '23 (%) |
EV/ Sales '22 (x) |
EV/ Sales '23 (x) |
EV/ EBITDA '22 (x) |
EV/ EBITDA '23 (x) |
PE '22 (x) |
PE '23 (x) |
Adobe Inc |
403 |
USD |
182,486 |
13 |
15 |
13.5 |
15.0 |
48.9 |
49.1 |
10.5 |
9.2 |
21.5 |
18.7 |
29.1 |
24.7 |
DocuSign Inc |
74 |
USD |
14,276 |
19 |
17 |
9.3 |
18.4 |
20.3 |
20.4 |
6.1 |
5.2 |
29.9 |
25.3 |
37.9 |
32.8 |
DT median |
16 |
16 |
11.4 |
16.7 |
34.6 |
34.8 |
8.3 |
7.2 |
25.7 |
22.0 |
33.5 |
28.8 |
|||
Equifax Inc |
196 |
USD |
22,986 |
6 |
9 |
10.3 |
12.6 |
35.4 |
36.7 |
5.7 |
5.2 |
16.1 |
14.3 |
24.0 |
20.8 |
Experian PLC |
2,646 |
GBp |
28,813 |
11 |
9 |
12.5 |
10.3 |
35.1 |
35.6 |
5.1 |
4.7 |
14.7 |
13.3 |
19.4 |
17.4 |
Fair Isaac Corp |
364 |
USD |
9,059 |
5 |
9 |
15.9 |
8.5 |
47.4 |
47.3 |
7.9 |
7.3 |
16.7 |
15.4 |
21.8 |
19.3 |
TransUnion |
82 |
USD |
15,125 |
31 |
9 |
22.8 |
12.5 |
36.7 |
37.9 |
5.3 |
4.9 |
14.4 |
12.8 |
20.9 |
18.2 |
CIM median |
8 |
9 |
14.2 |
11.4 |
36.0 |
37.3 |
5.5 |
5.1 |
15.4 |
13.8 |
21.3 |
18.7 |
|||
Alkemy SpA |
14 |
EUR |
78 |
14 |
9 |
37.2 |
14.4 |
11.6 |
12.2 |
1.0 |
0.9 |
8.3 |
7.2 |
12.7 |
10.5 |
Be Shaping the Future SpA |
3 |
EUR |
422 |
8 |
7 |
15.3 |
12.4 |
16.8 |
17.6 |
1.7 |
1.6 |
10.2 |
9.1 |
29.2 |
24.8 |
IMS median |
11 |
8 |
26.3 |
13.4 |
14.2 |
14.9 |
1.3 |
1.2 |
9.2 |
8.2 |
20.9 |
17.7 |
|||
Reply SpA |
120 |
EUR |
4,465 |
18 |
11 |
12.3 |
9.8 |
16.9 |
16.8 |
2.4 |
2.2 |
14.5 |
13.2 |
25.9 |
23.4 |
secunet Security Networks AG |
342 |
EUR |
2,205 |
7 |
26 |
N/A |
28.0 |
19.4 |
19.7 |
5.9 |
4.7 |
30.3 |
23.6 |
53.3 |
41.5 |
CS median |
12 |
18 |
12.3 |
18.9 |
18.1 |
18.2 |
4.2 |
3.4 |
22.4 |
18.4 |
39.6 |
32.5 |
|||
Tinexta |
22.8 |
EUR |
1,078 |
22 |
16 |
22.5 |
15.6 |
27.1 |
27.9 |
3.0 |
2.7 |
11.2 |
9.7 |
19.7 |
15.9 |
Source: Refinitiv, Edison Investment Research. Note: Priced 17 May 2022
Our SOTP valuation for Tinexta when applying the above peer multiples to our forecasts is approximately €38/share versus c €49/share previously.
Exhibit 5: Sum-of-the-parts valuation
EBITDA |
EBITDA multiple |
Valuation |
|||||||
FY22e |
FY23e |
FY22e |
FY23e |
FY22e |
FY23e |
FY22e |
FY23e |
||
€m |
€m |
x |
x |
€m |
€m |
€/share |
€/share |
Comments |
|
Digital Trust |
46.1 |
52.1 |
25.7 |
22.0 |
1,184.2 |
1,143.8 |
25.1 |
24.2 |
|
Credit Information & Management |
24.1 |
27.2 |
15.4 |
13.8 |
370.5 |
374.8 |
7.8 |
7.9 |
|
Innovation & Marketing Services |
50.6 |
56.8 |
9.2 |
8.2 |
467.7 |
463.0 |
9.9 |
9.8 |
|
Cyber Security |
13.1 |
18.4 |
22.4 |
18.4 |
293.9 |
338.1 |
6.2 |
7.2 |
|
Total/ (average) |
133.9 |
154.3 |
18.2 |
15.6 |
2,316.3 |
2,319.7 |
49.1 |
49.1 |
|
Central costs |
(13.0) |
(14.6) |
16.4 |
14.0 |
(212.6) |
(204.3) |
(4.5) |
(4.3) |
10% discount to average multiple |
120.9 |
139.8 |
17.4 |
15.1 |
2,103.7 |
2,115.5 |
44.6 |
44.8 |
||
Associate |
7.6 |
7.6 |
0.2 |
0.2 |
|||||
Minorities |
(95.4) |
(102.5) |
(2.0) |
(2.2) |
Proforma for Bregal |
||||
Net cash/ (debt) |
(228.4) |
(228.4) |
(4.8) |
(4.8) |
|||||
Market value |
1,787.4 |
1,792.2 |
37.9 |
38.0 |
|||||
Shares (m) |
47.2 |
47.2 |
|||||||
Implied share price (€) |
37.9 |
38.0 |
|||||||
Source: Refinitiv, Edison Investment Research. Note: Priced 17 May 2022.
Exhibit 6: Financial summary
€m |
2019 |
2020 |
2021 |
2022e |
2023e |
2024e |
||
31-December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||||
Revenue |
|
|
258.7 |
269.0 |
375.4 |
446.8 |
500.2 |
558.6 |
Operating costs |
(181.9) |
(187.8) |
(276.6) |
(325.9) |
(360.4) |
(400.4) |
||
EBITDA |
|
|
76.8 |
81.2 |
98.7 |
120.9 |
139.8 |
158.2 |
EBITDA (not adjusted) |
|
|
71.3 |
77.9 |
93.0 |
118.1 |
137.0 |
155.4 |
Operating profit (before amort. and excepts.) |
|
|
59.0 |
62.2 |
74.3 |
92.2 |
110.5 |
127.4 |
Amortisation of acquired intangibles |
(5.9) |
(6.0) |
(11.7) |
(11.7) |
(11.7) |
(11.7) |
||
Exceptionals |
(2.0) |
(2.4) |
(2.9) |
0.0 |
0.0 |
0.0 |
||
Share-based payments |
(3.6) |
(0.9) |
(2.8) |
(2.8) |
(2.8) |
(2.8) |
||
Reported operating profit |
47.5 |
52.9 |
56.9 |
77.7 |
96.0 |
112.9 |
||
Net Interest |
(4.1) |
0.6 |
(3.3) |
(5.0) |
(4.7) |
(4.2) |
||
Joint ventures & associates (post tax) |
(1.1) |
(1.0) |
(0.2) |
(0.2) |
(0.2) |
(0.2) |
||
Exceptionals |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
55.0 |
58.4 |
70.4 |
87.0 |
105.5 |
122.9 |
Profit Before Tax (reported) |
|
|
42.2 |
52.5 |
53.4 |
72.5 |
91.1 |
108.5 |
Reported tax |
(13.4) |
(14.6) |
(13.8) |
(21.0) |
(26.4) |
(31.5) |
||
Profit After Tax (norm) |
38.3 |
40.6 |
49.5 |
61.8 |
74.9 |
87.3 |
||
Profit After Tax (reported) |
28.8 |
37.9 |
39.6 |
51.5 |
64.7 |
77.0 |
||
Minority interests |
(0.6) |
(0.6) |
(1.3) |
(8.4) |
(9.5) |
(10.7) |
||
Discontinued operations |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
37.7 |
40.0 |
48.2 |
53.3 |
65.4 |
76.5 |
||
Net income (reported) |
28.2 |
37.3 |
38.3 |
43.0 |
55.1 |
66.3 |
||
Average Number of Shares Outstanding (m) |
47.0 |
47.1 |
47.2 |
45.9 |
45.6 |
45.4 |
||
EPS - normalised (c) |
|
|
80.3 |
85.5 |
104.4 |
116.2 |
143.3 |
168.7 |
EPS - normalised fully diluted (c) |
|
|
80.3 |
84.9 |
102.0 |
116.2 |
143.3 |
168.7 |
EPS - basic reported (€) |
|
|
0.60 |
0.80 |
0.83 |
0.94 |
1.21 |
1.46 |
Dividend (€) |
0.00 |
0.26 |
0.30 |
0.31 |
0.40 |
0.48 |
||
Revenue growth (%) |
8.4 |
4.0 |
39.5 |
19.0 |
11.9 |
11.7 |
||
EBITDA Margin before non-recurring costs (%) |
29.7 |
30.2 |
26.3 |
27.1 |
27.9 |
28.3 |
||
Normalised Operating Margin |
22.8 |
23.1 |
19.8 |
20.6 |
22.1 |
22.8 |
||
BALANCE SHEET |
||||||||
Fixed Assets |
|
|
316.7 |
325.8 |
591.0 |
640.3 |
621.3 |
603.2 |
Intangible Assets |
269.9 |
285.1 |
538.5 |
592.8 |
576.7 |
560.0 |
||
Tangible Assets |
21.2 |
19.0 |
25.2 |
20.2 |
17.3 |
15.8 |
||
Investments & other |
25.6 |
21.7 |
27.4 |
27.4 |
27.4 |
27.4 |
||
Current Assets |
|
|
139.4 |
196.1 |
213.2 |
251.1 |
323.7 |
399.9 |
Stocks |
1.1 |
1.2 |
1.3 |
1.3 |
1.3 |
1.3 |
||
Debtors |
89.8 |
84.1 |
119.5 |
153.0 |
171.3 |
191.3 |
||
Cash & cash equivalents |
33.6 |
92.8 |
68.3 |
72.6 |
126.9 |
183.1 |
||
Other financial assets |
6.6 |
7.3 |
4.1 |
4.1 |
4.1 |
4.1 |
||
Other |
8.2 |
10.7 |
20.0 |
20.0 |
20.0 |
20.0 |
||
Current Liabilities |
|
|
(160.4) |
(154.9) |
(207.5) |
(224.6) |
(237.4) |
(251.3) |
Creditors |
(92.7) |
(106.7) |
(146.8) |
(163.9) |
(176.6) |
(190.6) |
||
Tax and social security |
(2.9) |
(5.1) |
(3.6) |
(3.6) |
(3.6) |
(3.6) |
||
Short term borrowings |
(62.0) |
(40.4) |
(54.1) |
(54.1) |
(54.1) |
(54.1) |
||
Other |
(2.9) |
(2.7) |
(3.1) |
(3.1) |
(3.1) |
(3.1) |
||
Long Term Liabilities |
|
|
(146.2) |
(193.2) |
(353.1) |
(353.1) |
(353.1) |
(353.1) |
Long term borrowings |
(107.0) |
(150.5) |
(281.5) |
(281.5) |
(281.5) |
(281.5) |
||
Other long term liabilities |
(15.8) |
(14.3) |
(30.2) |
(30.2) |
(30.2) |
(30.2) |
||
Net Assets |
|
|
149.4 |
173.9 |
243.7 |
313.8 |
354.5 |
398.7 |
Minority interests |
(3.9) |
(4.0) |
(47.0) |
(95.4) |
(102.5) |
(105.7) |
||
Shareholders' equity |
|
|
145.6 |
169.8 |
196.7 |
218.3 |
252.1 |
293.0 |
CASH FLOW |
||||||||
Operating Cash Flow |
|
|
55.2 |
81.6 |
72.5 |
83.2 |
107.6 |
120.5 |
Capex and intangibles |
(13.5) |
(14.9) |
(16.2) |
(25.3) |
(21.9) |
(24.4) |
||
Acquisitions/disposals |
0.0 |
(3.3) |
(92.8) |
(64.4) |
0.0 |
0.0 |
||
Net interest |
(2.5) |
(1.9) |
(2.3) |
(5.0) |
(4.7) |
(4.2) |
||
Equity financing |
1.1 |
(10.0) |
(9.3) |
(10.0) |
(10.0) |
(10.0) |
||
Dividends |
(16.4) |
(2.2) |
(12.5) |
(19.2) |
(21.7) |
(25.7) |
||
Borrowings |
23.7 |
35.4 |
42.9 |
0.0 |
0.0 |
0.0 |
||
Other |
1.7 |
11.2 |
6.6 |
45.0 |
5.0 |
0.0 |
||
Net Cash Flow |
(1.5) |
59.2 |
(24.6) |
4.3 |
54.3 |
56.2 |
||
Opening net debt/(cash) |
|
|
124.9 |
129.1 |
91.9 |
263.3 |
259.0 |
204.7 |
Closing net debt/(cash) |
|
|
129.1 |
91.9 |
263.3 |
259.0 |
204.7 |
148.5 |
Source: Company data, Edison Investment Research
|
|
Research: TMT
TIE Kinetix’s H122 results showed that as it transitions to a 100% software as a service (SaaS) business model, the company is incurring costs this year to significantly accelerate growth in SaaS revenues from next year. After a net loss this year, we expect the company to quickly return to profit in FY23 with the EBITDA margin further increasing to 20% in FY25. TIE Kinetix is focused on 100% digitalisation of document streams in the supply chain and will therefore benefit from the expected high growth in the market for e-invoicing.
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