Tinexta — Encouraging start to FY22

Tinexta (MIL: TNXT)

Last close As at 21/06/2024

EUR17.19

0.54 (3.24%)

Market capitalisation

EUR812m

More on this equity

Research: TMT

Tinexta — Encouraging start to FY22

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.

Russell Pointon

Written by

Russell Pointon

Director of Content, Consumer and Media

TMT

Tinexta

Encouraging start to FY22

Q122 results

Professional services

11 May 2022

Price

€22.84

Market cap

€1,078m

Net debt (€m) at 31 March 2022

228.4

Shares in issue

47.2m

Free float

34%

Code

TNXT

Primary exchange

Euronext STAR Milan

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(4.5)

(24.1)

(6.1)

Rel (local)

(2.4)

(16.9)

(3.7)

52-week high/low

€43.26

€21.22

Business description

Tinexta has four divisions: Digital Trust, solutions to increase trust in digital transactions; Credit Information & Management, services to manage credit; Innovation & Marketing Services, services to help clients develop their businesses; and Cyber Security, services to help digital transformation.

Next events

H122 results

3 August 2022

Q322 results

10 November 2022

Analysts

Russell Pointon

+44 (0)20 3077 5700

Max Hayes

+44 (0)20 3077 5700

Tinexta is a research client of Edison Investment Research Limited

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*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

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


General disclaimer and copyright

This report has been commissioned by Tinexta and prepared and issued by Edison, in consideration of a fee payable by Tinexta. Edison Investment Research standard fees are £60,000 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 2022 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

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

This report has been commissioned by Tinexta and prepared and issued by Edison, in consideration of a fee payable by Tinexta. Edison Investment Research standard fees are £60,000 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 2022 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

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

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