Last close As at 05/08/2026
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Market capitalisation
EUR17m
Research: Consumer
The Platform Group (TPG) reported a strong acceleration in revenue growth and profitability in Q324 as its growing industry presence and subsequent underlying growth provided an increase in most KPIs during the period. Its valuation continues to look attractive versus its online peers if management delivers on its expected growth rates.
The Platform Group |
Significant acceleration in growth in Q324
Online services |
Spotlight - Update
25 November 2024 |
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The Platform Group is a research client of Edison Investment Research Limited |
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The Platform Group (TPG) reported a strong acceleration in revenue growth and profitability in Q324 as its growing industry presence and subsequent underlying growth provided an increase in most KPIs during the period. Its valuation continues to look attractive versus its online peers if management delivers on its expected growth rates.
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Company financials
Source: Company accounts and guidance. Note: *Pro forma. **Forecasts are the midpoint of management’s guidance. |
Strong revenue growth drives profitability
TPG published summary financial statements (headlines for income statement and net debt) and key performance indicators (KPIs) for the nine months to September 2024 (9M24). Growth in all KPIs (number of partners, +11%; number of orders, +22%; average order value, +5%; and active customers in the last 12 months (LTM), +5%) drove gross merchandise volume (GMV) (+c 30% to €608.4m) and revenue (+31% to €371.2m) in 9M24. M&A contributed c 18% revenue growth while organic growth was c 13%. The revenue growth and ongoing cost efficiencies provided leverage of all costs except distribution, to give adjusted EBITDA growth of 70% to €24.6m (6.6% margin). Q324 provided the strongest year-on-year growth rates in GMV (+63%), revenue (+44%) and adjusted EBITDA (+466%) of FY24 so far. All KPIs, except active customers LTM and adjusted EBITDA margin (5.0%), improved sequentially (ie quarter-on-quarter). Cash increased to €17.2m (H124: €15.1m) and net debt to €82.9m (H124: €53.1m). Management targets a similar year-end absolute net debt (2.6x EBITDA), dependent on M&A.
Financial guidance reiterated, more M&A expected
Management has reiterated its September 2024 financial guidance for FY24 and FY25. The midpoint of the FY24 guidance implies GMV up 19%, revenue down 11% and adjusted EBITDA down 27% (4.3% margin) in Q424. The comparative Q423 was boosted by one-off car sales. The guidance does not include any contribution from three acquisitions, including TPG entering the US, that are expected to complete in either December 2024 or January 2025.
Valuation: Discount to online non-food peers
TPG’s EV/EBITDA multiples for FY24 and FY25 of 7.7x and 4.8x, respectively, compare with the medians for online non-food retailer peers (see our initiation note) of 10.1x and 8.6x. While TPG’s free float and liquidity might justify a discount to the peers, the size of the discount appears excessive given management’s guidance for growth in revenue and profitability.
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Research: Industrials
Theon International commands a unique position in military night vision systems as a market-leading business focused on man-portable systems (goggles). It has a market-leading position in Europe, an expanding presence globally and is developing adjacent product portfolios, most notably platforms like military vehicle vision systems. Its potential is supported by an addressable market of more than €3bn forecast to grow at double-digit rates. Combining this with a low capital-intensity business model should drive positive financials and strong cash generation.