AUSTRIACARD — FY24 growth outlook maintained

AUSTRIACARD (ASE: ACAG)

Last close As at 10/10/2024

EUR5.88

0.00 (0.00%)

Market capitalisation

EUR214m

More on this equity

Research: TMT

AUSTRIACARD — FY24 growth outlook maintained

AUSTRIACARD reported a step-up in adjusted revenue in Q224 (+12.4% y o y) as payment card sales re-accelerated and digital transformation technologies projects ramped up. H124 adjusted revenue was 7% higher and adjusted EBITDA 11% higher, resulting in margin expansion of 0.6pp to 15.0%. Management reiterated full-year guidance for adjusted revenue and EBITDA, for which our forecasts are unchanged. We have slightly increased our tax rate assumptions and, reflecting a slower unwind of working capital, have increased our net debt forecasts.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

AUSTRIACARD

FY24 growth outlook maintained

Q224 results

Software and comp services

10 September 2024

Price

€5.90

Market cap

€214m

Net debt (€m) at end Q224

103.3

Shares in issue

36.3m

Free float

28%

Code

ACAG

Primary exchange

Athens

Secondary exchange

Vienna Stock Exchange

Share price performance

%

1m

3m

12m

Abs

(3.0)

(3.8)

(15.9)

Rel (local)

(3.8)

(2.5)

(24.6)

52-week high/low

€6.75

€5.52

Business description

AUSTRIACARD is a Vienna-headquartered group of companies with a portfolio of services in secure chip and payment solutions, document lifecycle management and digital transformation technologies for the financial, government and wider private sectors.

Next events

Q324 results

14 November

Analyst

Katherine Thompson

+44 (0)20 3077 5700

AUSTRIACARD is a research client of Edison Investment Research Limited

AUSTRIACARD reported a step-up in adjusted revenue in Q224 (+12.4% yoy) as payment card sales re-accelerated and digital transformation technologies projects ramped up. H124 adjusted revenue was 7% higher and adjusted EBITDA 11% higher, resulting in margin expansion of 0.6pp to 15.0%. Management reiterated full-year guidance for adjusted revenue and EBITDA, for which our forecasts are unchanged. We have slightly increased our tax rate assumptions and, reflecting a slower unwind of working capital, have increased our net debt forecasts.

Year end

Revenue* (€m)

PBT**
(€m)

EPS**
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/22

314.7

23.0

0.42

0.03

14.0

0.4%

12/23

364.6

29.8

0.62

0.10

9.5

1.7%

12/24e

398.6

34.9

0.64

0.11

9.2

1.8%

12/25e

428.4

42.9

0.81

0.14

7.3

2.4%

Note: *Reported, after hyperinflation adjustment. **PBT and EPS (diluted) are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Growth from digital transformation technologies

H124 revenue of €192m was 7% higher year-on-year; Secure Chip and Payment Solutions (SCPS; 61.8% of revenue) declined 1.7%, Document Lifecycle Management (DLM; 29.7% of revenue) increased 5.0% and Digital Transformation Technologies (DTT; 8.5% of revenue) increased 270.5%. While adjusted EBITDA increased 11% y-o-y, reported net income declined 10% as the effective tax rate increased substantially, reflecting changes in various jurisdictions. Net debt of €103.3m was higher than the €95.0m at end-FY23 due to working capital outflows.

FY24 growth outlook unchanged

For FY24, management continues to expect adjusted revenue growth of c 10% (our forecast 9.7%) and adjusted EBITDA growth of 10–12% (our forecast 11.1%). Our forecasts imply H2 adjusted revenue of €193.2m, only marginally higher than in H1, and adjusted EBITDA of €26.0m, lower than H1’s €28.8m, highlighting the potential for management to exceed the EBITDA target.

Valuation: Sustained growth to reduce the discount

With a limited number of listed peers for the smart card business and a growing exposure to digital transformation software and services, peer multiple valuation analysis is of limited relevance. On a discounted cash flow basis, using a WACC of 10%, a terminal growth rate of 2%, our pro forma forecasts to FY26, conservative revenue growth of 3% for FY27–33 and flat EBITDA margins from FY27, we arrive at a per share value of €9.64 (from €9.85/share), 63% above the current share price. In our view, factors that could reduce this gap include further adoption of digital services outside of the Greek public sector, market share gains in the US and other focus payment card markets, faster reduction of net debt, customer wins for card-as-a-service and a further increase in the free float.

Review of Q224 results

Exhibit 1 summarises AUSTRIACARD’s Q224/H124 results. We show both reported and adjusted results (which exclude the impact of accounting for hyperinflation). In H124, the effect of IAS 29 hyperinflation accounting for Turkish operations added €3.3m to revenue and €0.2m to adjusted EBITDA, and reduced net income by €0.1m.

Exhibit 1: Q224 and H124 results highlights

Before hyperinflation accounting

Reported

€m

Q223

Q224

H123

H124

Q223

Q224

H123

H124

Revenue

91.1

102.3

179.6

192.0

91.4

103.6

181.2

195.4

Gross profit I

37.7

45.7

78.0

87.8

40.4

45.8

78.3

88.2

Gross profit II

22.5

26.3

44.4

48.8

22.3

26.4

44.4

49.1

Adjusted EBITDA

12.6

15.1

26.0

28.7

13.7

14.3

26.0

29.0

Adjusted EBIT

8.6

10.9

18.3

20.5

8.6

11.0

18.3

20.8

EBIT

9.8

10.2

17.6

18.6

9.7

10.1

17.7

18.7

Profit before tax (PBT)

8.4

8.5

14.8

14.9

8.7

8.2

15.0

14.9

Profit after tax (PAT)

7.2

6.2

12.1

11.2

7.5

6.0

12.3

11.2

Net income after minority interest

7.4

5.6

11.8

10.6

Gross margin I

44.3%

44.6%

43.5%

45.7%

44.2%

44.2%

43.2%

45.2%

Gross margin II

24.7%

25.7%

24.7%

25.4%

24.5%

25.5%

24.5%

25.1%

Adjusted EBITDA margin

13.7%

14.8%

14.4%

15.0%

13.7%

14.7%

14.4%

14.8%

Adjusted EBIT margin

9.5%

10.6%

10.2%

10.7%

9.4%

10.6%

10.1%

10.6%

EBIT margin

10.8%

9.9%

9.8%

9.7%

10.7%

9.7%

9.8%

9.6%

Revenue growth y-o-y

12.4%

7.0%

13.3%

7.8%

Source: AUSTRIACARD. Note: Gross profit I is after costs of material and mailing; gross profit II is gross profit I less production costs. Gross profit II is equivalent to reported gross profit.

We discuss results on a pre-hyperinflation accounting basis as this represents the underlying performance of the business. After a weaker quarter in Q124, when revenue only grew 1.4% y-o-y, the company saw sequential and year-on-year revenue growth in Q224 of 14.0% and 12.4% respectively. The adjusted EBITDA margin increased by 1.1pp y-o-y in Q224 and 0.6pp in H124, as higher gross profit dropped through. The adjusted EBIT margin also increased in Q224 and H124, by 1.1pp and 0.5pp respectively. Reported EBIT includes €2.1m (H124: €0.6m) for management participation schemes that is excluded from adjusted EBIT. After higher net finance costs in H124, PBT was essentially flat year-on-year. The effective tax rate increased to 26.9% in Q224 from 21.9% in Q124 and 19.8% in FY23, reflecting the increase in corporation tax rates in the UK from 19% to 25% since 1 April 2023 and a new basis for calculating tax in Romania (revenue rather than profit-based). The company expects to optimise the tax rate in H224 so it should moderate in the remainder of the year.

Net debt at the end of H124 was €103.3m, with net debt/EBITDA of 2.0x. This compares to €102.6m at the end of Q124 and €95.0m at the end of FY23. As we have previously written, the company has elevated levels of inventory, built when supply chain issues prompted the need for safety stock. Working capital/revenue was 19.3% for H124 and the company is working to reduce this to more like 16–17%.

Divisional performance

Exhibit 2 shows revenue by business area and Exhibit 3 shows performance by division (which is on a geographic basis). After a weak quarter for SCPS in Q124, revenue picked up in Q224 as metal card sales resumed. DLM saw modest 5% y-o-y growth and DTT saw strong growth of 271% as it is now in the implementation phase of several contracts. Exhibit 4 shows a list of indicative projects won by the DTT business.

Exhibit 2: Revenue by business area

€m

Q223

Q224

y-o-y

H123

H124

y-o-y

Secure Chip and Payment Solutions (SCPS)

60.4

63.4

5.0%

120.8

118.7

-1.7%

Document Lifecycle Management (DLM)

28.3

28.5

0.7%

54.3

57.0

5.0%

Digital Transformation Technologies (DTT)

2.3

10.4

352.2%

4.4

16.3

270.5%

Total revenue

91.0

102.3

12.4%

179.5

192.0

7.0%

Source: AUSTRIACARD

Exhibit 3: Divisional performance

 

H123

H124

 

Q123

Q223

Q124

Q224

Revenue growth

Western Europe/Nordics/Americas

 

28.7%

-3.6%

 

-25.0%

19.0%

Central Eastern Europe/DACH

 

50.9%

14.2%

 

23.0%

6.2%

Turkey/Middle East/Africa

 

64.5%

24.5%

 

34.7%

14.5%

Corporate & eliminations

 

 

60.4%

4.9%

Total – adjusted

 

N/A

7.0%

 

1.4%

12.4%

Reported revenue growth

 

7.8%

 

2.3%

13.3%

 

 

Gross margin I

Western Europe/Nordics/Americas

 

43.1%

44.6%

 

43.6%

42.6%

50.3%

40.8%

Central Eastern Europe/DACH

 

41.4%

44.2%

 

39.3%

43.2%

44.1%

44.4%

Turkey/Middle East/Africa

 

19.1%

17.8%

 

21.0%

17.3%

15.8%

20.2%

Total – adjusted

 

43.5%

45.7%

 

42.7%

44.3%

46.9%

44.6%

Reported gross margin I

 

43.2%

45.2%

 

42.3%

44.2%

46.2%

44.2%

 

 

Gross margin II

Western Europe/Nordics/Americas

 

27.2%

27.1%

 

28.7%

25.6%

29.0%

25.9%

Central Eastern Europe/DACH

 

21.7%

23.5%

 

20.7%

22.6%

23.3%

23.7%

Turkey/Middle East/Africa

 

12.0%

11.3%

 

12.0%

12.0%

10.1%

12.7%

Total – adjusted

 

24.7%

25.4%

 

24.7%

24.7%

25.1%

25.7%

Reported gross margin II

 

24.5%

25.1%

 

24.5%

24.5%

24.8%

25.5%

 

 

Adjusted EBITDA margin

 

 

Western Europe/Nordics/Americas

 

18.0%

17.7%

 

20.9%

14.9%

19.7%

16.4%

Central Eastern Europe/DACH

 

11.6%

13.3%

 

10.5%

12.6%

12.9%

13.8%

Turkey/Middle East/Africa

 

9.3%

8.6%

 

9.9%

8.8%

7.8%

9.6%

Total – adjusted

 

14.4%

15.0%

 

15.1%

13.7%

15.2%

14.8%

Reported adjusted EBITDA margin

 

14.4%

14.8%

 

15.0%

13.7%

15.1%

14.7%

 

 

Adjusted operating margin

 

 

Western Europe/Nordics/Americas

 

14.0%

13.1%

 

17.0%

10.7%

14.1%

12.4%

Central Eastern Europe/DACH

 

7.2%

9.2%

 

6.0%

8.2%

8.9%

9.5%

Turkey/Middle East/Africa

 

8.8%

8.1%

 

9.0%

8.6%

7.4%

8.8%

Total – adjusted

 

10.2%

10.7%

 

10.9%

9.5%

10.8%

10.6%

Reported adjusted operating margin

 

10.1%

10.6%

 

10.8%

9.4%

10.7%

10.6%

Source: AUSTRIACARD

Exhibit 4: Digital Transformation Technologies indicative projects

Source: AUSTRIACARD

Western Europe, Nordics, Americas

Q224 revenue increased 19% y-o-y and 50% q-o-q to €38.9m as sales of metal cards resumed. For H124, revenue declined 3.6% y-o-y to €64.9m. As discussed in the Q124 results, the decline was due to the decision to stop selling part-finished products in SCPS (€13.9m impact in H124). Excluding this, the division saw organic growth of 21.7% y-o-y. Q224 gross margin (gross margin II) increased by 0.3pp y-o-y and H124 was essentially flat. Adjusted EBITDA increased 31% y-o-y to €6.4m in Q224 and declined 5% y-o-y to €11.5m in H124. In H124, the adjusted EBITDA margin declined 0.3pp y-o-y and the adjusted operating margin declined 0.9pp to 13.1%.

Central Eastern Europe

Q224 revenue increased 6% y-o-y and H124 revenue increased 14% y-o-y. The start of public sector digitalisation projects in Greece and growth in other DTT business contributed additional revenue of €11.9m. The SCPS business grew by €2.7m due to shipments to the MEA region. Gross margin increased 1.1pp y-o-y in Q224 and 1.8pp y-o-y in H124 on higher sales. In H124, adjusted EBITDA increased 31%, resulting in margin expansion of 1.7pp to 13.3%. Adjusted operating margin increased 2.0pp to 9.2%.

Turkey/Middle East and Africa

Q224 revenue increased 15% y-o-y and H124 revenue increased 25% y-o-y with strong sales of payment cards. It sees ongoing opportunities in the MEA smart card and citizen identity markets. Gross margin increased 0.7pp to 12.7% in Q224 but declined 0.7pp to 11.3% in H124 due to the sales mix. H124 adjusted EBITDA increased 15%, resulting in the margin declining 0.7pp to 8.6%. Adjusted operating margin declined 0.7pp to 8.1%.

Outlook and changes to forecasts

Management maintains its guidance for adjusted revenue growth of c 10% for FY24 and growth in adjusted EBITDA in the range of 10–12%, potentially enhancing margins. We maintain our forecasts, which factor in reported revenue growth of 9.3%, adjusted revenue growth of 9.7% and adjusted EBITDA growth of 11.1%. We maintain our normalised operating profit estimates but our reported operating profit estimates increase due to a lower forecast for management participation expenses. We have added in a small contribution from associates for FY24–26. As the effective tax rate was higher than expected in H124, we have tweaked up our tax rate assumptions for FY24–26. As working capital has not yet started to unwind, we have increased our expectations for working capital cash consumption during FY24, increasing our net debt forecast at year-end and in subsequent years.

Exhibit 5: Changes to forecasts

€m

FY24e

FY25e

FY26e

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Revenues

398.6

398.6

0.0%

9.3%

428.4

428.4

0.0%

7.5%

459.1

459.1

0.0%

7.2%

EBITDA

55.9

55.9

0.0%

10.8%

63.8

63.8

0.0%

14.1%

72.1

72.1

0.0%

13.0%

EBITDA margin

14.0%

14.0%

0.0%

0.2%

14.9%

14.9%

0.0%

0.9%

15.7%

15.7%

0.0%

0.8%

Normalised operating profit

41.8

41.8

0.0%

13.6%

49.2

49.2

0.0%

17.6%

56.9

56.9

0.0%

15.7%

Normalised operating margin

10.5%

10.5%

0.0%

0.4%

11.5%

11.5%

0.0%

1.0%

12.4%

12.4%

0.0%

0.9%

Reported operating profit

33.8

35.2

4.0%

12.0%

41.2

42.5

3.3%

20.9%

48.9

50.3

2.8%

18.1%

Reported operating margin

8.5%

8.8%

0.3%

0.2%

9.6%

9.9%

0.3%

1.1%

10.6%

10.9%

0.3%

1.0%

Normalised PBT

34.5

34.9

1.1%

17.1%

42.6

42.9

0.8%

23.2%

51.1

51.4

0.6%

19.8%

Reported PBT

25.3

27.1

6.9%

28.8%

33.5

35.1

5.0%

29.8%

42.0

43.7

4.0%

24.2%

Normalised net income

25.3

25.3

-0.2%

10.9%

32.0

31.8

-0.6%

25.7%

38.8

38.8

0.0%

22.1%

Reported net income

18.3

19.4

5.9%

22.5%

24.8

25.8

3.9%

33.2%

31.6

32.7

3.5%

26.9%

Normalised basic EPS (€)

0.70

0.70

-0.2%

6.9%

0.88

0.88

-0.6%

25.8%

1.07

1.07

0.0%

22.1%

Normalised diluted EPS (€)

0.64

0.64

-0.2%

2.8%

0.81

0.81

-0.6%

25.8%

0.98

0.98

0.0%

22.1%

Reported basic EPS (€)

0.50

0.53

5.9%

-18.0%

0.68

0.71

3.9%

33.3%

0.87

0.90

3.5%

26.9%

Dividend per share (€)

0.10

0.11

5.9%

7.9%

0.14

0.14

3.9%

33.3%

0.18

0.18

3.5%

26.9%

Net debt

68.2

79.0

15.9%

-1.6%

41.2

50.2

21.7%

-36.5%

10.0

20.2

101.8%

-59.7%

Net debt including leases

82.9

93.7

-1.4%

55.9

64.9

-30.8%

24.7

34.9

-46.2%

Net debt including leases/EBITDA (x)

1.5

1.7

0.9

1.0

0.3

0.5

Source: Edison Investment Research


Exhibit 6: Financial summary

€m

2019

2020

2021

2022

2023

2024e

2025e

2026e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

135.0

173.9

178.0

314.7

364.6

398.6

428.4

459.1

Cost of sales

(105.2)

(134.2)

(137.1)

(239.9)

(276.3)

(300.4)

(320.9)

(342.4)

Gross profit

 

 

29.8

39.7

40.9

74.9

88.3

98.1

107.5

116.7

Operating costs

(16.8)

(18.5)

(19.1)

(35.7)

(37.9)

(42.2)

(43.7)

(44.6)

EBITDA

 

 

13.0

21.1

21.8

39.1

50.4

55.9

63.8

72.1

Normalised operating profit

 

 

6.2

12.3

11.4

27.2

36.8

41.8

49.2

56.9

Amortisation of acquired intangibles

(0.1)

(1.4)

(1.4)

(2.5)

(2.5)

(2.5)

(2.5)

(2.5)

Exceptionals

0.0

(1.1)

5.0

(7.9)

(2.9)

(4.1)

(4.1)

(4.1)

Share-based payments

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Reported operating profit

6.1

9.8

15.0

16.8

31.4

35.2

42.5

50.3

Net Interest

(2.7)

(3.3)

(2.7)

(4.3)

(7.1)

(7.2)

(6.5)

(5.7)

Joint ventures & associates (post tax)

0.0

0.0

0.0

0.1

0.1

0.3

0.3

0.3

Exceptionals

0.0

0.0

(0.0)

(4.2)

(3.4)

(1.2)

(1.2)

(1.2)

Profit Before Tax (norm)

 

 

3.4

8.9

8.7

23.0

29.8

34.9

42.9

51.4

Profit Before Tax (reported)

 

 

3.3

6.5

12.3

8.4

21.0

27.1

35.1

43.7

Reported tax

(1.8)

(1.0)

(2.2)

(3.5)

(4.2)

(6.5)

(8.1)

(9.6)

Profit After Tax (norm)

1.5

7.5

7.2

13.3

23.8

26.5

33.1

40.1

Profit After Tax (reported)

1.5

5.4

10.0

4.8

16.8

20.6

27.1

34.1

Minority interests

(0.1)

(0.3)

(0.8)

(0.7)

(1.0)

(1.2)

(1.3)

(1.3)

Net income (normalised)

1.5

7.2

6.4

12.6

22.8

25.3

31.8

38.8

Net income (reported)

1.4

5.1

9.2

4.2

15.8

19.4

25.8

32.7

Basic average number of shares outstanding (m)

29.3

29.3

29.3

30.0

35.0

36.3

36.3

36.3

EPS - basic normalised (€)

 

 

0.05

0.25

0.22

0.42

0.65

0.70

0.88

1.07

EPS - diluted normalised (€)

 

 

0.05

0.25

0.22

0.42

0.62

0.64

0.81

0.98

EPS - basic reported (€)

 

 

0.10*

0.35*

0.63*

0.28*

0.65*

0.53

0.71

0.90

Dividend (€)

0.00

0.00

0.00

0.03

0.10

0.11

0.14

0.18

Revenue growth (%)

28.8%

2.4%

76.9%

15.8%

9.3%

7.5%

7.2%

EBITDA Margin (%)

9.7%

12.1%

12.3%

12.4%

13.8%

14.0%

14.9%

15.7%

Normalised Operating Margin (%)

4.6%

7.1%

6.4%

8.6%

10.1%

10.5%

11.5%

12.4%

BALANCE SHEET

Fixed Assets

 

 

114.2

115.2

145.4

153.8

156.8

156.9

155.7

155.0

Intangible Assets

29.3

31.4

60.7

57.2

55.5

54.6

52.2

50.2

Tangible Assets

80.3

79.6

83.0

90.4

96.3

97.1

98.0

99.1

Investments & other

4.6

4.2

1.8

6.2

5.0

5.2

5.5

5.7

Current Assets

 

 

77.3

66.2

81.0

116.4

164.9

176.8

198.9

226.4

Stocks

19.2

19.8

23.2

36.1

58.2

70.0

68.1

70.4

Debtors

21.3

19.3

29.3

40.0

44.7

49.1

52.8

56.6

Cash & cash equivalents

22.3

11.0

11.5

21.6

23.8

20.1

39.0

58.9

Other

14.5

16.1

17.1

18.7

38.3

37.5

39.0

40.5

Current Liabilities

 

 

(90.3)

(49.3)

(62.9)

(99.4)

(99.3)

(95.4)

(99.1)

(102.9)

Creditors

(32.1)

(29.8)

(40.3)

(64.8)

(79.4)

(75.5)

(79.2)

(83.0)

Tax and social security

(0.4)

(0.3)

(1.6)

(3.5)

(3.0)

(3.0)

(3.0)

(3.0)

Short term borrowings

(54.6)

(14.9)

(16.2)

(25.3)

(12.7)

(12.7)

(12.7)

(12.7)

Lease liabilities

(2.7)

(2.5)

(4.5)

(2.3)

(3.8)

(3.8)

(3.8)

(3.8)

Other

(0.5)

(1.8)

(0.2)

(3.5)

(0.5)

(0.5)

(0.5)

(0.5)

Long Term Liabilities

 

 

(44.6)

(71.4)

(97.3)

(90.0)

(115.2)

(110.2)

(100.2)

(90.2)

Long term borrowings

(19.6)

(46.4)

(72.3)

(62.0)

(91.5)

(86.5)

(76.5)

(66.5)

Lease liabilities

(6.8)

(5.1)

(3.5)

(8.6)

(10.9)

(10.9)

(10.9)

(10.9)

Other long term liabilities

(18.2)

(20.0)

(21.4)

(19.3)

(12.8)

(12.8)

(12.8)

(12.8)

Net Assets

 

 

56.5

60.7

66.2

80.8

107.2

128.0

155.3

188.3

Minority interests

(12.5)

(12.0)

(13.0)

(11.6)

(0.8)

(2.0)

(3.2)

(4.5)

Shareholders' equity

 

 

44.0

48.7

53.3

69.2

106.4

126.1

152.1

183.7

CASH FLOW

Op Cash Flow before WC and tax

3.3

6.5

12.3

8.4

21.0

27.1

35.1

43.7

Working capital

2.0

(2.0)

(4.0)

2.7

(35.3)

(19.4)

0.4

(3.7)

Exceptional & other

9.9

13.8

6.5

31.4

29.8

27.7

27.5

27.3

Tax

(0.2)

(1.4)

(1.6)

(1.6)

(6.4)

(6.5)

(8.1)

(9.6)

Net operating cash flow

 

 

15.0

16.9

13.2

40.9

9.1

28.8

55.0

57.6

Capex

(5.3)

(8.8)

(9.0)

(14.5)

(11.1)

(11.7)

(12.5)

(13.4)

Acquisitions/disposals

(18.7)

0.2

(16.5)

(2.9)

(1.1)

(1.6)

0.0

0.0

Net interest

(2.2)

(2.3)

(2.4)

(4.1)

(7.4)

(7.2)

(6.5)

(5.7)

Equity financing

0.0

0.0

0.0

0.0

0.0

(0.2)

0.0

0.0

Dividends

(0.8)

(0.7)

0.0

0.0

(0.9)

(3.6)

(3.9)

(5.2)

Other

(2.1)

(3.2)

(11.0)

(7.4)

(2.9)

(3.1)

(3.2)

(3.3)

Net Cash Flow

(14.2)

2.2

(25.8)

12.0

(14.2)

1.3

28.9

29.9

Opening net debt/(cash)

 

 

35.9

51.9

50.2

77.1

65.7

80.3

79.0

50.2

FX

(0.1)

(0.5)

(0.3)

(0.6)

(0.7)

0.0

0.0

0.0

Other non-cash movements

(1.7)

0.0

(0.7)

(0.1)

0.3

(0.0)

0.0

0.0

Closing net debt/(cash)

 

 

51.9

50.2

77.1

65.7

80.3

79.0

50.2

20.2

Source: AUSTRIACARD, Edison Investment Research. Note: *Not adjusted for share split in August 2023.

General disclaimer and copyright

This report has been commissioned by AUSTRIACARD and prepared and issued by Edison, in consideration of a fee payable by AUSTRIACARD. 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 2024 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by AUSTRIACARD and prepared and issued by Edison, in consideration of a fee payable by AUSTRIACARD. 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 2024 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on AUSTRIACARD

View All

Latest from the TMT sector

View All TMT content

Research: Oil & Gas

HELLENiQ ENERGY — A good quarter, but softer margins expected in Q3

HELLENiQ ENERGY’s Q224 results showed a continuation of Q124 trends, with refining margins trending down but increased year-on-year oil prices and operational improvements driving sales and earnings growth. Q2 sales of €3,274m were up 9.9% y-o-y, adjusted EBITDA of €232m was up 42% y o y and adjusted net income of €73m was up 192% y-o-y. The Q224 HELLENiQ benchmark margin declined to $5.5/bbl, from $8.8/bbl in Q124, but was above the $4.4/bbl achieved in Q223. The company noted that the Q324 estimated refining margin has averaged $3.9/bbl, which is lower than Q224, and management expects a more normalised H224.

Continue Reading

Subscribe to Edison

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

Sign up for free