AUSTRIACARD — Solid Q324 supports FY24 outlook

AUSTRIACARD (ASE: ACAG)

Last close As at 03/12/2024

EUR5.50

0.00 (0.00%)

Market capitalisation

EUR200m

More on this equity

Research: TMT

AUSTRIACARD — Solid Q324 supports FY24 outlook

AUSTRIACARD’s Q324 results confirmed the company made good progress towards its FY24 adjusted revenue and EBITDA targets. The sale of metal cards to banks, a new security printing contract in East Africa and a growing number of digital transformation projects helped generate adjusted revenue growth of 30% y-o-y in Q324 and 14% in the first nine months of 2024 (9M24). Adjusted operating profit grew 52% y-o-y in Q324 and 23% for 9M24, with operating margin expansion of 0.7pp to 10.2% for 9M24. With full-year guidance unchanged, we broadly maintain our forecasts.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

AUSTRIACARD

Solid Q324 supports FY24 outlook

Q324 results

Software and comp services

19 November 2024

Price

€5.40

Market cap

€195m

Net debt (€m) at end Q324

104.0

Shares in issue

36.2m

Free float

28%

Code

ACAG

Primary exchange

Athens

Secondary exchange

Vienna Stock Exchange

Share price performance

%

1m

3m

12m

Abs

(8.2)

(9.1)

(10.7)

Rel (local)

(6.9)

(5.7)

(14.8)

52-week high/low

€6.61

€5.25

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

FY24 results

31 March 2025

Analyst

Katherine Thompson

+44 (0)20 3077 5700

AUSTRIACARD is a research client of Edison Investment Research Limited

AUSTRIACARD’s Q324 results confirmed the company made good progress towards its FY24 adjusted revenue and EBITDA targets. The sale of metal cards to banks, a new security printing contract in East Africa and a growing number of digital transformation projects helped generate adjusted revenue growth of 30% y-o-y in Q324 and 14% in the first nine months of 2024 (9M24). Adjusted operating profit grew 52% y-o-y in Q324 and 23% for 9M24, with operating margin expansion of 0.7pp to 10.2% for 9M24. With full-year guidance unchanged, we broadly maintain our forecasts.

Year end

Revenue* (€m)

PBT**
(€m)

EPS**
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/22

314.7

23.0

0.42

0.03

12.9

0.5%

12/23

364.6

29.8

0.62

0.10

8.7

1.9%

12/24e

398.7

34.9

0.64

0.11

8.4

2.0%

12/25e

429.1

43.0

0.81

0.15

6.7

2.7%

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

9M24 revenue of €298.3m was 14% higher y-o-y; Secure Chip and Payment Solutions (SCPS; 61% of revenue) increased 6%, Document Lifecycle Management (DLM; 32% of revenue) increased 16% and Digital Transformation Technologies (DTT; 7% of revenue) increased 154%, as the group has a growing number of DTT projects sourced from existing SCPS and DLM customers as well as new public sector customers. 9M24 adjusted operating profit increased 23% yoy and net income after minority interests increased 14%. Net debt of €104.0m was slightly above the previous quarter, with excess inventory yet to be worked down.

FY24 growth outlook unchanged

For FY24, management continues to expect adjusted revenue growth of c 10% (our forecast 11.4%) and adjusted EBITDA growth of 10–12% (our forecast 12.2%). Our forecasts imply Q424 adjusted revenue growth of 4% and essentially flat adjusted operating profit, which we believe is conservative.

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 €9.74 (up from €9.64/share), 80% 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 Q324 results

Exhibit 1 summarises AUSTRIACARD’s Q324/9M24 results. We show both reported and adjusted results (which exclude the impact of accounting for hyperinflation). In Q324, the effect of IAS 29 hyperinflation accounting for Turkish operations added €1.9m to revenue, €0.2m to adjusted EBITDA and operating profit and reduced net income by €0.4m.

Exhibit 1: Q324 and 9M24 results highlights

Before hyperinflation accounting

Reported

€m

Q323

Q324

9M23

9M24

Q323

Q324

9M23

9M24

Revenue

82.0

106.2

261.5

298.3

90.0

108.1

271.2

303.5

Gross profit I

38.2

49.7

116.2

137.5

39.6

50.1

117.9

138.3

Gross profit II

19.9

24.5

64.2

73.3

20.8

24.7

65.2

73.8

Adjusted EBITDA

10.6

14.3

36.5

43.1

10.0

13.7

37.3

43.5

Adjusted EBIT

6.5

9.9

24.8

30.4

7.3

10.1

25.6

30.9

EBIT

6.1

9.3

23.8

28.0

6.1

9.3

23.8

28.0

Profit before tax (PBT)

3.3

6.4

18.1

21.2

3.3

6.4

18.2

21.2

Profit after tax (PAT)

2.5

5.1

14.7

16.3

2.5

5.1

14.8

16.3

Net income after minority interest

2.4

5.6

14.2

16.2

Gross margin I

46.6%

46.8%

44.4%

46.1%

44.0%

46.3%

43.5%

45.6%

Gross margin II

24.2%

23.0%

24.5%

24.6%

23.2%

22.8%

24.1%

24.3%

Adjusted EBITDA margin

12.9%

13.5%

13.9%

14.4%

11.2%

12.6%

13.8%

14.3%

Adjusted EBIT margin

8.0%

9.3%

9.5%

10.2%

8.2%

9.3%

9.5%

10.2%

EBIT margin

7.4%

8.7%

9.1%

9.4%

6.8%

8.6%

8.8%

9.2%

Revenue growth y-o-y

29.6%

14.0%

20.1%

11.9%

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. Revenue growth accelerated from 12.4% y-o-y in Q224 to 29.6% in Q324. For 9M24, revenue grew 14.0% y-o-y, well ahead of the company’s target to grow adjusted revenue by c 10% for FY24. Q324 adjusted EBITDA increased 35% y-o-y with the margin expanding 0.6pp to 13.5% and 9M24 adjusted EBITDA increased 18% y-o-y to a margin of 14.4% (+0.5pp y-o-y). The adjusted EBIT margin increased 1.3pp to 9.3% in Q324. Reported EBIT includes €0.8m for management participation schemes that is excluded from adjusted EBIT. Q324 PBT increased 94% y-o-y. The effective tax rate was 20.4% in Q324 and 23.4% for 9M24. Overall, net income after minority interests increased 133% y-o-y for Q324 and 14% y-o-y for 9M24.

Net debt at the end of Q324 was €104.0m, up from €103.3m at the end of H124 and €95.0m at the end of FY23, with net debt/EBITDA of 1.9x. 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 19.9% for 9M24 and the company is working to reduce this to more like 16–17% over the coming year.

Divisional performance

Exhibit 2 shows revenue by business area and Exhibit 3 shows performance by division (which is on a geographic basis). SCPS revenue in Q324 was stable versus Q224 and up 25% y-o-y, helped by continuing sales of metal cards. For 9M24, SCPS revenue was 6% higher y-o-y. As we have previously written, 9M23 SCPS revenue included €20.6m of wholesale chip sales which have since been stopped; on a like-for-like basis 9M24 revenue was 20.8% higher y-o-y. DLM revenue rose on both a sequential and year-on-year basis due to a new secure printing contract in East Africa. DTT revenue grew 23% y-o-y and for 9M24, was 154% higher as the business is in the implementation phase of several contracts. Exhibit 4 shows a list of indicative projects won by the DTT business. Since we last wrote, the company has added several new projects including a GenAI-based document understanding project for a Romanian bank, digital archiving services for a Turkish industrial, contract management and digital archiving for a Turkish fintech and a KYC/AML project for a Swiss bank. These show that the company’s strategy to work on a geographic basis to drive cross-selling is starting to pay off, with a number of DTT projects won with existing SCPS customers.

Exhibit 2: Revenue by business area

€m

Q123

Q223

Q323

9M23

Q124

Q224

Q324

9M24

Secure Chip and Payment Solutions (SCPS)

60.4

60.4

50.3

171.1

55.3

63.4

63.1

181.8

Document Lifecycle Management (DLM)

26.0

28.3

27.8

82.1

28.5

28.5

38.4

95.4

Digital Transformation Technologies (DTT)

2.1

2.3

3.9

8.3

5.9

10.4

4.8

21.1

88.5

91.0

82.0

261.5

89.7

102.3

106.3

298.3

y-o-y growth

Secure Chip & Payment Solutions

-8.4%

5.0%

25.4%

6.3%

Document Lifecycle Management

9.6%

0.7%

38.1%

16.2%

Digital Transformation Technologies

181.0%

352.2%

23.1%

154.2%

Total

1.4%

12.4%

29.6%

14.1%

Source: AUSTRIACARD

Exhibit 3: Financial performance by region

€m

 

Q323

Q324

9M23

9M24

Revenue growth

 

Western Europe/Nordics/Americas

 

59.3%

13.8%

Central Eastern Europe/DACH

 

-3.2%

8.3%

Turkey/Middle East/Africa

 

36.4%

28.5%

Corporate & eliminations

 

-42.2%

6.0%

Total - adjusted

 

29.6%

14.0%

Total - reported

 

20.1%

11.9%

 

Gross margin I

 

Western Europe/Nordics/Americas

 

43.9%

36.8%

43.3%

41.6%

Central Eastern Europe/DACH

 

43.8%

43.8%

42.2%

44.1%

Turkey/Middle East/Africa

 

21.9%

59.1%

20.0%

32.4%

Total - adjusted

 

46.6%

46.8%

44.4%

46.1%

Total - reported

 

44.0%

46.3%

43.5%

45.6%

 

Gross margin II

 

Western Europe/Nordics/Americas

 

23.1%

23.0%

26.1%

25.5%

Central Eastern Europe/DACH

 

22.4%

20.6%

21.9%

22.6%

Turkey/Middle East/Africa

 

12.1%

22.8%

12.0%

15.3%

Total - adjusted

 

24.2%

23.0%

24.5%

24.6%

Total - reported

 

23.2%

22.8%

24.1%

24.3%

 

Adjusted EBITDA margin

 

Western Europe/Nordics/Americas

 

10.6%

14.4%

16.0%

16.4%

Central Eastern Europe/DACH

 

12.4%

11.3%

11.9%

12.7%

Turkey/Middle East/Africa

 

8.7%

16.7%

9.1%

11.5%

Total - adjusted

 

12.9%

13.5%

13.9%

14.4%

Total - reported

 

12.5%

13.4%

13.8%

14.3%

 

Adjusted operating margin

 

Western Europe/Nordics/Americas

 

5.2%

10.4%

11.6%

12.0%

Central Eastern Europe/DACH

 

8.0%

6.5%

7.5%

8.4%

Turkey/Middle East/Africa

 

6.7%

15.3%

8.1%

10.6%

Total - adjusted

 

8.0%

9.3%

9.5%

10.2%

Total - reported

 

8.2%

9.3%

9.5%

10.2%

Source: AUSTRIACARD

Exhibit 4: Digital Transformation Technologies indicative projects

Source: AUSTRIACARD

Western Europe, Nordics, Americas

Q324 revenue increased 59% y-o-y to €40.8m and 9M24 revenue increased 14% y-o-y to €105.7m. Stripping out the effect of stopping the sale of wholesale chip products, which generated revenue of €18.4m in 9M23, 9M24 revenue was 42% higher y-o-y. The €31.2m like-for-like revenue increase was mainly due to higher sales of metal cards (€20.8m contribution to growth) as well as stronger sales of regular payment cards and related fulfilment and postal services. Q324 gross margin (gross margin II) was essentially flat year-on-year and for 9M24 was 0.6pp lower y-o-y, reflecting the higher cost of metal cards versus plastic cards. 9M24 operating costs were marginally higher year-on-year, with higher R&D costs almost offset by a reduction in other costs. Adjusted EBITDA increased 116% y-o-y to €5.9m and increased 17% y-o-y to €17.4m in 9M24 with a margin of 14.4% (+3.8pp y-o-y) and 16.4% (+0.4pp y-o-y), respectively.

Central Eastern Europe

Q324 revenue declined 3% y-o-y to €52.3m and 9M24 revenue increased 8% y-o-y to €173.9m. For 9M24, DTT projects in Greece and Romania contributed additional revenue of €12.8m. Gross margin declined 1.8pp y-o-y in Q324 and increased 0.7pp y-o-y in 9M24. All operating cost lines increased y-o-y, resulting in a 12% decline in Q324 adjusted EBITDA to €5.9m and a 16% increase in 9M24 adjusted EBITDA to €22.1m with a margin of 11.3% (-1.2pp y-o-y) and 12.7% (+0.8pp yoy) respectively.

Turkey, Middle East and Africa

Q324 revenue increased 36% y-o-y to €20.4m and 9M24 revenue increased 29% y-o-y to €57.9m. For 9M24, a new security printing project in Africa contributed additional revenue of €10.4m and SCPS revenue from the Turkish market increased €2.5m. Gross margin jumped 10.6pp y-o-y in Q324 and increased 3.3pp y-o-y in 9M24. While 9M24 opex (excluding depreciation and amortisation) increased 56% y-o-y, this did not prevent a 162% increase in Q324 adjusted EBITDA to €3.4m and a 62% increase in 9M24 adjusted EBITDA to €6.7m with a margin of 16.7% (+8pp yo-y) and 11.5% (+2.4pp y-o-y) respectively.

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. With inflation in Turkey moderating (although still at 48.58% in October), we have reduced our IAS 29 adjustments to arrive at reported financials. We maintain our forecasts, which factor in reported revenue growth of 9.4%, adjusted revenue growth of 11.4% and adjusted EBITDA growth of 12.2%. 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

398.7

0.0%

9.4%

428.4

429.1

0.2%

7.6%

459.1

460.4

0.3%

7.3%

EBITDA

55.9

55.9

0.0%

10.8%

63.8

64.0

0.3%

14.5%

72.1

72.1

0.0%

12.6%

EBITDA margin

14.0%

14.0%

0.0%

0.2%

14.9%

14.9%

0.0%

0.9%

15.7%

15.7%

-0.1%

0.7%

Normalised operating profit

41.8

41.8

0.0%

13.6%

49.2

49.4

0.4%

18.0%

56.9

56.9

0.0%

15.2%

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%

0.8%

Reported operating profit

35.2

35.2

0.0%

12.1%

42.5

42.7

0.5%

21.4%

50.3

50.2

0.0%

17.5%

Reported operating margin

8.8%

8.8%

0.0%

0.2%

9.9%

10.0%

0.0%

1.1%

10.9%

10.9%

0.0%

0.9%

Normalised PBT

34.9

34.9

0.0%

17.1%

42.9

43.0

0.3%

23.5%

51.4

51.0

-0.8%

18.5%

Reported PBT

27.1

27.6

2.1%

31.5%

35.1

35.8

1.9%

29.6%

43.7

43.8

0.3%

22.3%

Normalised net income

25.3

25.3

0.0%

10.9%

31.8

31.9

0.3%

26.0%

38.8

38.5

-0.9%

20.7%

Reported net income

19.4

19.8

2.2%

25.2%

25.8

26.3

2.0%

32.9%

32.7

32.8

0.3%

24.8%

Normalised basic EPS (€)

0.70

0.70

0.0%

7.0%

0.88

0.88

0.3%

26.1%

1.07

1.06

-0.9%

20.7%

Normalised diluted EPS (€)

0.64

0.64

0.0%

2.8%

0.81

0.81

0.3%

26.1%

0.98

0.97

-0.9%

20.7%

Reported basic EPS (€)

0.53

0.54

2.2%

-16.2%

0.71

0.72

2.0%

33.0%

0.90

0.90

0.3%

24.8%

Dividend per share (€)

0.11

0.11

2.2%

10.3%

0.14

0.15

2.0%

33.0%

0.18

0.18

0.3%

24.8%

Net debt

79.0

83.3

5.4%

3.6%

50.2

51.6

2.9%

-38.0%

20.2

21.8

7.8%

-57.8%

Net debt including leases

93.7

98.0

3.1%

64.9

66.3

-32.3%

34.9

36.5

-45.0%

Net debt including leases/EBITDA (x)

1.7

1.8

1.0

1.0

0.5

0.5

Source: Edison Investment Research


Exhibit 6: Financial summary

31-December

€ m

2019

2020

2021

2022

2023

2024e

2025e

2026e

INCOME STATEMENT

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

Revenue

 

 

135.0

173.9

178.0

314.7

364.6

398.7

429.1

460.4

Cost of sales

(105.2)

(134.2)

(137.1)

(239.9)

(276.3)

(300.8)

(321.3)

(343.1)

Gross profit

 

 

29.8

39.7

40.9

74.9

88.3

97.9

107.8

117.3

Operating costs

(16.8)

(18.5)

(19.1)

(35.7)

(37.9)

(42.0)

(43.8)

(45.2)

EBITDA

 

 

13.0

21.1

21.8

39.1

50.4

55.9

64.0

72.1

Normalised operating profit

 

 

6.2

12.3

11.4

27.2

36.8

41.8

49.4

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

42.7

50.2

Net Interest

(2.7)

(3.3)

(2.7)

(4.3)

(7.1)

(7.2)

(6.6)

(6.1)

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)

(0.6)

(0.6)

(0.6)

Profit Before Tax (norm)

 

 

3.4

8.9

8.7

23.0

29.8

34.9

43.0

51.0

Profit Before Tax (reported)

 

 

3.3

6.5

12.3

8.4

21.0

27.6

35.8

43.8

Reported tax

(1.8)

(1.0)

(2.2)

(3.5)

(4.2)

(6.6)

(8.2)

(9.6)

Profit After Tax (norm)

1.5

7.5

7.2

13.3

23.8

26.5

33.1

39.8

Profit After Tax (reported)

1.5

5.4

10.0

4.8

16.8

21.0

27.6

34.2

Minority interests

(0.1)

(0.3)

(0.8)

(0.7)

(1.0)

(1.2)

(1.3)

(1.3)

Discontinued operations

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

1.5

7.2

6.4

12.6

22.8

25.3

31.9

38.5

Net income (reported)

1.4

5.1

9.2

4.2

15.8

19.8

26.3

32.8

Basic ave. 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

1.06

EPS - diluted normalised (€)

 

 

0.05

0.25

0.22

0.42

0.62

0.64

0.81

0.97

EPS - basic reported (€)

 

 

0.10*

0.35*

0.63*

0.28*

0.65*

0.54

0.72

0.90

Dividend (€)

0.00

0.00

0.00

0.03

0.10

0.11

0.15

0.18

Revenue growth (%)

28.8%

2.4%

76.9%

15.8%

9.4%

7.6%

7.3%

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

157.1

155.9

155.2

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

97.3

98.2

99.3

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

189.0

211.5

239.0

Stocks

19.2

19.8

23.2

36.1

58.2

72.5

68.2

70.5

Debtors

21.3

19.3

29.3

40.0

44.7

49.2

52.9

56.8

Cash & cash equivalents

22.3

11.0

11.5

21.6

23.8

30.9

52.6

72.4

Other

14.5

16.1

17.1

18.7

38.3

36.4

37.9

39.3

Current Liabilities

 

 

(90.3)

(49.3)

(62.9)

(99.4)

(99.3)

(93.2)

(96.8)

(100.6)

Creditors

(32.1)

(29.8)

(40.3)

(64.8)

(79.4)

(73.3)

(76.9)

(80.7)

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)

(125.2)

(115.2)

(105.2)

Long term borrowings

(19.6)

(46.4)

(72.3)

(62.0)

(91.5)

(101.5)

(91.5)

(81.5)

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

127.6

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

125.7

152.1

183.8

CASH FLOW

Op Cash Flow before WC and tax

3.3

6.5

12.3

8.4

21.0

27.6

35.8

43.8

Working capital

2.0

(2.0)

(4.0)

2.7

(35.3)

(23.1)

2.8

(3.9)

Exceptional & other

9.9

13.8

6.5

31.4

29.8

27.7

27.6

27.7

Tax

(0.2)

(1.4)

(1.6)

(1.6)

(6.4)

(6.6)

(8.2)

(9.6)

Net operating cash flow

 

 

15.0

16.9

13.2

40.9

9.1

25.6

57.9

58.0

Capex

(5.3)

(8.8)

(9.0)

(14.5)

(11.1)

(11.9)

(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)

(6.6)

(6.1)

Equity financing

0.0

0.0

0.0

0.0

0.0

(1.0)

0.0

0.0

Dividends

(0.8)

(0.7)

0.0

0.0

(0.9)

(3.6)

(4.0)

(5.3)

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)

(2.9)

31.6

29.8

Opening net debt/(cash)

 

 

35.9

51.9

50.2

77.1

65.7

80.3

83.3

51.6

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

83.3

51.6

21.8

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: Energy & Resources

HELLENiQ ENERGY — Margins troughed in Q3, expect Q4 improvement

HELLENiQ ENERGY’s Q324 results were held back by a weak refining environment, as previously guided by the company, but showed an impressive operational performance. The company noted that the Q424 refining margin is likely to be $2/bbl to $3/bbl above the average for Q3. Q3 refining sales volumes of 4.163m tonnes were up 8% y-o-y, adjusted EBITDA of €183m was down 54% y o y and adjusted net income of €49m was down 77% y-o-y. HELLENiQ’s Q324 benchmark refining margin declined to $3.6/bbl, from $5.5/bbl in Q224, as anticipated by the company at the Q2 results, and at its lowest level since 2021. HELLENiQ announced a €0.2 per share dividend to be paid in January 2025, implying an interim yield of c 3.0%. Management was more confident on the Q424 outlook, expecting a better market and potentially some progress on its DEPA and ELPEDISON business associations that might continue the streamlining of the group.

Continue Reading

Subscribe to Edison

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

Sign up for free