Last close As at 05/08/2026
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Research: TMT
In a post year-end trading update, artec reported strong sales growth, with FY20 revenues rising 50% y-o-y to €3.2m (FY19: €2.0m), marginally below consensus (€3.25m). Management expects a significantly improved FY20 profit figure y-o-y when it reports its FY20 results. 24% of FY20 revenues are recurring, with contract terms of up to four years giving increasing forward visibility. Two-thirds of sales came from the security side of the business, which continues to show good momentum, while the media business suffered from contract delays due largely to uncertainty around the COVID-19 pandemic. Management remains confident in the outlook for both media and security segments, with security its key focus for FY21.
Written by
artec technologies |
Positive FY20 progress, focus on MULTIEYE
Technology |
Scale research report - Flash
27 January 2021 |
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In a post year-end trading update, artec reported strong sales growth, with FY20 revenues rising 50% y-o-y to €3.2m (FY19: €2.0m), marginally below consensus (€3.25m). Management expects a significantly improved FY20 profit figure y-o-y when it reports its FY20 results. 24% of FY20 revenues are recurring, with contract terms of up to four years giving increasing forward visibility. Two-thirds of sales came from the security side of the business, which continues to show good momentum, while the media business suffered from contract delays due largely to uncertainty around the COVID-19 pandemic. Management remains confident in the outlook for both media and security segments, with security its key focus for FY21.
FY20 results overview
Despite the challenges of COVID-19, artec won new clients in Spain, Turkey and the GCC, including a Qatari sports broadcaster, news agency and sports academy. Clients included a mix of existing and new customers from both the security and broadcast segments. Recurring revenues (cloud contracts, software and services) of €0.75m represented 24% of overall revenue, up from 12.5% in FY19. The security segment represented two-thirds of artec’s sales in FY20, with €0.2m of new service contracts signed with DACH security authorities. With the cancellation of trade fairs and events, progress on the media side of the business was slower than expected, with a number of orders delayed due to COVID-19. However, eight of Germany’s 14 state media authorities are now clients. Despite delays to contract awards, artec’s management remains confident in the outlook for both sectors.
Strategic focus on MULTIEYE security surveillance
In FY21 and beyond, artec sees considerable growth potential in law enforcement, as it positions itself as a GDPR-compliant data collector and processor for security authorities based around its private cloud-based software platform, MULTIEYE. Expanding MULTIEYE’s video surveillance functionality is artec's key strategic goal for FY21, with artec planning to offer a ‘try before you buy’ proposition to drive regional and international sales in FY21.
Valuation: Continuing growth justifies valuation
artec’s share price has reflected the progress made by the business, rising c 50% in FY20 and >100% since the group’s mid-March lows. The group trades on a consensus FY21e EV/EBITDA multiple of 14.3x and a P/E of 32.9x. With a positive outlook and sustained growth, the shares have scope for continued appreciation.
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Consensus estimates
Source: Refinitiv |
Edison Investment Research provides qualitative research coverage on companies in the Deutsche Börse Scale segment in accordance with section 36 subsection 3 of the General Terms and Conditions of Deutsche Börse AG for the Regulated Unofficial Market (Freiverkehr) on Frankfurter Wertpapierbörse (as of 1 March 2017). Two to three research reports will be produced per year. Research reports do not contain Edison analyst financial forecasts.
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Research: Financials
Record’s assets under management (AUME) reached over $70bn for the first time at the end of December, reflecting a combination of net flows and market, foreign exchange and scaling moves in Q321. The pattern of flows has increased the diversity of revenues while the benefits of initiatives to increase the breadth of product offering are yet to come; the launch of the Currency Impact Fund is due soon and a pipeline of other potential products is in development, supported by technology investment.