Last close As at 05/08/2026
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Market capitalisation
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Research: TMT
MotorK closed FY23 with annual recurring revenue (ARR) of €34.1m, a 39% increase from the prior year. While both the Retail and Enterprise segments grew over the year, Enterprise ARR more than doubled to make up 22% of year-end ARR. Net revenue retention (NRR) above 100% for both segments highlights the ongoing adoption of multiple products across the group’s existing customer base. The company continues to target positive cash EBITDA in FY24. We maintain our forecasts pending FY23 results on 5 March.
MotorK |
Enterprise adoption drives growth |
FY23 trading update |
Software and comp services |
5 February 2024 |
Share price performance
Business description
Analysts
MotorK is a research client of Edison Investment Research Limited |
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MotorK closed FY23 with annual recurring revenue (ARR) of €34.1m, a 39% increase from the prior year. While both the Retail and Enterprise segments grew over the year, Enterprise ARR more than doubled to make up 22% of year-end ARR. Net revenue retention (NRR) above 100% for both segments highlights the ongoing adoption of multiple products across the group’s existing customer base. The company continues to target positive cash EBITDA in FY24. We maintain our forecasts pending FY23 results on 5 March.
Year end |
Revenue |
ARR |
PBT* |
Diluted EPS* (€) |
DPS |
EV/Sales |
EV/EBITDA (x) |
12/21 |
27.6 |
15.1 |
(8.2) |
(0.37) |
0.00 |
7.0 |
230.1 |
12/22 |
38.5 |
24.6 |
(8.8) |
(0.22) |
0.00 |
5.0 |
N/A |
12/23e |
51.4 |
37.2 |
(4.9) |
(0.10) |
0.00 |
3.7 |
29.7 |
12/24e |
62.8 |
49.6 |
6.6 |
0.12 |
0.00 |
3.1 |
9.2 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
MotorK’s FY23 trading update confirmed that the company closed the year with ARR of €34.1m, up 39% y-o-y although below our €37.2m forecast. Adding signed contracts not yet delivered and billed as well as contractual price increases totalling €4.5m, committed ARR was €38.6m at year-end, just below the company’s guided range of €39–43m. Of reported ARR, Retail contributed €26.7m, up 27% y-o-y, and Enterprise €7.4m, up 107% y-o-y. Retail churn was 5.8% and NRR was 113.1%. Enterprise churn was not reported but NRR of 129.4% was very strong. Enterprise ARR now makes up 22% of total ARR, compared to 14% a year ago.
The company did not disclose reported revenue for FY23 but noted that recurring billings of €30m were 50% higher y-o-y and made up 78% of total billings. Total revenue consists of billings plus the change in contract assets (reflecting IFRS15 revenue recognition), which was not disclosed. The company continues to target positive cash EBITDA in FY24 (EBITDA after capitalised development costs and change in contract assets); we forecast just above break-even at €0.1m.
The group is in advanced discussions with potential investors to strengthen liquidity and provide cash for working capital until the business reaches cash break-even.
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Research: Investment Companies
HgT’s preliminary unaudited FY23 trading update reported a 10.7% net asset value total return (NAV TR) in FY23 (of which c 1% in Q423). This was supported by continued strong trading across its portfolio, with the top 20 holdings (representing 77% of the portfolio’s value) posting average revenue and EBITDA growth of 25% and 28% respectively. HgT therefore sustained its multi-year track record of delivering c 20–30% pa revenue and EBITDA growth. Despite muted global M&A activity and private equity exits, HgT had a good level of liquidity events in FY23 with £343m of proceeds from exits and refinancings. The discount narrowing from 23% to 13% during FY23 (now c 14%) translated into a share price TR of 26.2%.