Currency in EUR
Last close As at 07/06/2023
EUR22.70
▲ −0.90 (−3.81%)
Market capitalisation
EUR80m
Research: Consumer
Portobello’s underlying profitability in FY22 was ahead of our expectations despite the more difficult operating environment affecting revenue growth. Portobello’s multi-distribution model enabled its B2B activities to partially compensate for the slower-than-expected but still strong Retail and Media growth. Our forecasts are under review and will be updated following publication of Portobello’s full financial statements in English.
Portobello SpA |
FY22 underlying results ahead of expectations |
FY22 results |
Retail |
23 March 2023 |
Share price performance Business description
Analysts
Portobello SpA is a research client of Edison Investment Research Limited |
Portobello’s underlying profitability in FY22 was ahead of our expectations despite the more difficult operating environment affecting revenue growth. Portobello’s multi-distribution model enabled its B2B activities to partially compensate for the slower-than-expected but still strong Retail and Media growth. Our forecasts are under review and will be updated following publication of Portobello’s full financial statements in English.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
62.7 |
8.3 |
1.96 |
0.0 |
12.4 |
N/A |
12/21 |
85.5 |
13.0 |
2.61 |
0.0 |
9.3 |
N/A |
12/22e |
129.9** |
18.6** |
3.33 |
0.0 |
7.3 |
N/A |
12/23e |
211.0 |
28.0 |
5.07 |
0.0 |
4.8 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. ** Reported.
Portobello’s revenue, underlying EBITDA and operating profit grew to €129.9m (+48% y-o-y), €24.6m (+49%) and €19.9m (+43%), respectively. Profitability was ahead of our expectations, EBITDA by 11% at €22.2m and operating profit by 5% at €19.0m, while revenue was c 6% below our forecast (€137.9m).
With respect to revenue, B2B’s y-o-y growth of 72% to €33.5m was significantly ahead of our forecast (€23.3m), while Retail and Media, which grew by 114% to €24.6m and 32% to €71.8m, respectively, were below our forecasts.
Portobello expanded its Retail activities through the addition of 10 new stores, and Media exposure through an acquisition and a capital increase.
Portobello recognised an exceptional cost of €6.4m for media that was unfulfilled due to the supplier entering liquidation. Management is seeking to recover some of the amount that was written off.
By the period end, net debt increased to €42.4m from €27.6m (at end H122) and €17.3m (at end FY21) as the company financed working capital and completed the joint acquisition of ePrice. The results press release indicates four priorities following the ePrice acquisition: becoming an omnichannel operator, expanding the product range of ePrice’s portal, developing economies of scale and delivering a competitive B2B offer for small to medium-sized enterprises. We believe FY23 will be a year of focus on developing the long-term growth opportunity and therefore ePrice will not provide a material contribution to Portobello’s FY23 results.
|
|
Research: Investment Companies
Heliad Equity Partners (HEP) reported a 3.6% decrease in net asset value (NAV) over the four-month period ending January 2023, bringing the NAV decrease since end 2021 to 45.4%. flatexDEGIRO (FTK) was the main valuation driver and remains HEP’s largest asset (38% of the portfolio). Meanwhile, HEP’s private portfolio saw successful funding rounds at Enpal and Razor Group in recent months. HEP recently issued 1.6m new shares, raising €7m in new capital to facilitate further investments. Given that the share issue was carried out at a 43.6% discount to end-January 2023 NAV, we calculate that it will result in a c 5% NAV per share dilution.
Get access to the very latest content matched to your personal investment style.