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Research: TMT
Tinexta’s interim results were strong due to a combination of underlying growth and contributions from M&A. The completion of the disposal of its lowest-growth division, Credit Information and Management (CIM), leaves Tinexta with a significantly improved financial position, and therefore well placed to take account of recent weakness in equity markets to undertake further M&A. The reiteration of underlying guidance for FY22, despite the disposal of lower-growth CIM, indicates a little more caution by management for the rest of the year, likely due to the heightened macroeconomic risks. Our underlying forecasts for FY22 are unchanged. Our DCF-based valuation is €38/share, from €42/share previously.
Tinexta |
Strength across the board |
H122 results |
Professional services |
8 August 2022 |
Share price performance
Business description
Next events
Analysts
Tinexta is a research client of Edison Investment Research Limited |
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Tinexta’s interim results were strong due to a combination of underlying growth and contributions from M&A. The completion of the disposal of its lowest-growth division, Credit Information and Management (CIM), leaves Tinexta with a significantly improved financial position, and therefore well placed to take account of recent weakness in equity markets to undertake further M&A. The reiteration of underlying guidance for FY22, despite the disposal of lower-growth CIM, indicates a little more caution by management for the rest of the year, likely due to the heightened macroeconomic risks. Our underlying forecasts for FY22 are unchanged. Our DCF-based valuation is €38/share, from €42/share previously.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
269.0 |
58.4 |
0.85 |
0.26 |
27.9 |
1.1 |
12/21 |
**301.5 |
70.4 |
1.02 |
0.30 |
23.2 |
1.3 |
12/22e |
365.3 |
67.4 |
0.90 |
0.30 |
26.4 |
1.3 |
12/23e |
408.2 |
83.7 |
1.19 |
0.32 |
20.0 |
1.3 |
12/24e |
455.8 |
98.9 |
1.42 |
0.39 |
16.7 |
1.7 |
Note: *PBT and EPS (fully diluted) are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Pro forma for disposal of CIM.
H122: Strong revenue and profit growth
Excluding CIM (treated as a discontinued activity following the completion of its disposal to Crif), Tinexta’s H122 revenue grew by c 20% y-o-y and adjusted EBITDA by c 21%, indicating an improving margin. The period end net financial position (€267m) was relatively unchanged versus end FY21 (€263m), as free cash flow (lower versus H121 due to one-off costs and higher tax) and the receipt from the investment by Bregal (€70m) was invested in further M&A (€61m).
FY22 estimates: Underlying guidance reiterated
Management has reiterated its underlying guidance for FY22 (10–12% revenue growth and 8–10% adjusted EBITDA growth), while increasing guidance for total growth (revenue 21–23% and adjusted EBITDA 25–27%). This requires a significant step up in growth for the Cyber Security business unit, of which management is confident. Our new estimates, which reflect the stripping out of CIM’s contribution, are in line with management’s guidance. The underlying estimates for the remaining business units are unchanged and we add a minor contribution for recent M&A (Plannet). By year-end, management expects to have a significantly improved financial profile (net financial indebtedness/adjusted EBITDA of 0.6x).
Valuation: Well supported by DCF
Following significant weakness in the early part of 2022, the share price has been trading in a range of low-mid €20s during the last few months. Our DCF-based valuation reduces to €38/share (€42/share previously) to reflect the changes in the group’s profile.
H122 results: Underlying growth and M&A
Income statement: Strong 20% growth in revenue and EBITDA
Tinexta’s H122 results were reported with the CIM business unit treated as a discontinued activity following the completion of its sale to Crif on 3 August 2022, the day before publication of the results. The transaction was completed quickly after the proposed disposal was announced on 31 May 2022.
Exhibit 1: Summary income statement
€m |
Q121 |
Q221 |
H121 |
Q122 |
Q222 |
H122 |
Group revenue |
64.1 |
75.6 |
139.7 |
78.1 |
89.9 |
168.0 |
Growth y-o-y |
0.0% |
0.0% |
0.0% |
21.8% |
18.9% |
20.2% |
Organic y-o-y |
N/A |
N/A |
N/A |
N/A |
N/A |
8.0% |
– Digital Trust |
31.2 |
32.4 |
63.6 |
38.0 |
38.9 |
76.9 |
Organic y-o-y |
19.4% |
10.9% |
14.9% |
7.7% |
8.5% |
8.1% |
– Cyber Security |
16.8 |
17.8 |
34.6 |
18.0 |
18.8 |
36.8 |
Organic y-o-y |
N/A |
N/A |
N/A |
7.1% |
5.4% |
6.2% |
– Innovation & Marketing Services |
16.1 |
25.5 |
41.7 |
21.0 |
34.4 |
55.4 |
Organic y-o-y |
23.5% |
5.2% |
11.7% |
19.4% |
5.8% |
11.1% |
Group adjusted EBITDA |
11.6 |
19.1 |
30.7 |
14.5 |
22.6 |
37.1 |
Margin |
18.1% |
25.3% |
22.0% |
18.6% |
25.1% |
22.1% |
Growth y-o-y |
N/A |
N/A |
N/A |
25.0% |
18.2% |
20.6% |
Organic growth y-o-y |
N/A |
N/A |
N/A |
N/A |
N/A |
1.3% |
– Digital Trust |
7.2 |
8.4 |
15.6 |
10.4 |
10.7 |
21.1 |
Margin |
23.0% |
26.0% |
24.5% |
27.3% |
27.6% |
27.4% |
Organic growth y-o-y |
21.1% |
4.9% |
11.8% |
19.4% |
12.2% |
15.5% |
– Cyber Security |
1.9 |
1.6 |
3.5 |
1.2 |
1.8 |
3.0 |
Margin |
11.5% |
8.7% |
10.1% |
6.5% |
9.7% |
8.2% |
Organic growth y-o-y |
N/A |
N/A |
N/A |
(39.4%) |
18.8% |
(13.5%) |
– Innovation & Marketing Services |
5.0 |
12.1 |
17.1 |
6.3 |
13.7 |
20.0 |
Margin |
30.9% |
47.6% |
41.1% |
30.2% |
39.7% |
36.1% |
Organic growth y-o-y |
36.0% |
(6.9%) |
2.8% |
14.2% |
(5.8%) |
0.0% |
– Other |
N/A |
N/A |
(5.5) |
N/A |
N/A |
(7.1) |
Stock options |
N/A |
N/A |
(0.9) |
N/A |
N/A |
(1.3) |
Non-recurring costs |
N/A |
N/A |
(0.6) |
N/A |
N/A |
(3.2) |
Reported EBITDA |
11.1 |
18.1 |
29.2 |
11.6 |
21.0 |
32.6 |
Adjusted operating profit |
8.1 |
15.7 |
23.8 |
10.5 |
18.3 |
28.8 |
Margin |
12.6% |
20.8% |
17.0% |
13.5% |
20.4% |
17.2% |
Operating profit |
5.0 |
12.1 |
17.1 |
4.9 |
14.1 |
19.0 |
Margin |
7.8% |
16.0% |
12.2% |
6.3% |
15.7% |
11.3% |
Net finance |
N/A |
N/A |
(1.7) |
N/A |
N/A |
(2.6) |
Reported PBT |
N/A |
N/A |
15.2 |
N/A |
N/A |
16.5 |
Tax |
N/A |
N/A |
(4.3) |
N/A |
N/A |
(3.1) |
Tax rate |
N/A |
N/A |
28% |
N/A |
N/A |
19% |
Reported net profit (continuing operations) |
3.6 |
7.3 |
10.9 |
2.4 |
10.9 |
13.3 |
Source: Tinexta, Edison Investment Research
Revenue grew by 20% y-o-y to €168.0m in H122 with a slight decline in the growth rate from Q1 to Q2. Comparatives in the last few years have been positively and negatively affected by COVID-19 related restrictions, which skews comparison between the quarters. With this as a backdrop, Digital Trust’s (DT’s) organic revenue growth rate improved to 8.5% in Q222 from 7.7% in Q122, helped by a much easier comparative. Conversely, organic growth rates for Cyber Security (CS) (7.1% in Q1 to 5.4% in Q2) and Innovation & Marketing Services (IMS) (19.4% in Q1 to 5.8% in Q2) both reduced through H122.
Adjusted EBITDA grew by c 21% y-o-y to €37.1m in H122, including a slowing to 18% growth in Q2 from Q1’s 25%, and a slightly lower margin in Q222 versus the prior year due to changes in mix and the different margins of the three business units.
Net profit from continuing operations grew by c 22% to €13.3m in H122, with underlying growth in adjusted EBITDA helped by a lower tax rate of c 19% versus c 28% in H121.
The results of the individual business units are summarised below:
■
Digital Trust: Revenue grew by c 21% y-o-y in H122 to €76.9m, including organic revenue growth of c 8%. As highlighted above, there was improving momentum in organic revenue growth through the period with growth flagged in all of the main product areas. CertEurope’s revenue contribution in Q222 of €3.7m (Edison estimate) was below Q122’s €4.4m, reflecting its expected quarterly volatility according to management. The improvement in H122 EBITDA margin to 27.4% from 24.5% reflects operational leverage on the organic revenue growth, as well as the contribution of the higher-margin of CertEurope (c 38%) versus the underlying business unit’s (c 26%), albeit the former declined from c 41% in Q1 to 35% in Q2. At the H122 stage, 8% organic revenue growth is below management’s guided FY22–24 CAGR of 10%. However, it was against a tough comparative from H121 of c 15%; an easier comparative for H222 from H221 (c 7%) is supportive of a higher growth rate later in the year.
■
Cyber Security: Revenue grew by c 6% y-o-y to €36.8m with a modest reduction in the growth rate to c 5% in Q222 from c 7% in Q122. Management indicates continuous growth in Managed and Advisory Services as well as in Implementation Services, and good demand for LegalMail Security premium services, which is a collaboration with InfoCert (DT business unit). Management confirmed the build in CS’s revenue backlog will help to drive a step up in revenue growth in H222, which is required to meet its guidance for a CAGR of 19% for organic revenue growth in FY22–24. The guidance implies H222 revenue growth of c 30%+. Following the planned investment in the organisational and commercial structure of the business unit at the start of the year, which led to a decline in adjusted EBITDA in Q122 of c 39%, there was a notable improvement in Q222 with c 18% growth, which bodes well for future operational leverage. At the start of August 2022, CS completed the acquisitions of LAN & WAN Solutions, a systems integrator, and Teknesi, which offers complete solutions for managing risks and improving overall corporate security.
■
Innovation and Marketing Services: The greatest contributors to year-on-year revenue growth of c 33% in H122 to €55.4m were recent acquisitions, which added c 22% growth. Organic revenue growth of 11% included a slowing from Q1’s 19% growth rate to Q2’s 6%. We note that IMS’s revenue growth is quite volatile between the financial periods given the mix of businesses and their own seasonality. Management indicated underlying growth from an increase in new customers and access to new markets. The recently acquired companies, Evalues and Enhancers, represented all of the 17% growth in H122’s adjusted EBITDA, with a decline for the underlying businesses of c 6% in Q222. Management’s guided organic revenue CAGR for FY22–24 is 7%, so we believe the H122 performance is reassuring, while recognising the high seasonality of the business unit’s subsidiaries.
Cash flow and balance sheet: Net financial debt unchanged
Tinexta’s net financial indebtedness of €266.7m at the end of H122 was relatively unchanged from the position at the end of FY21 (€263.3m). Free cash flow from continuing operations of €16m declined from €21m in H121 due to higher tax payments. The other significant movements were the receipt of €70m from Bregal for its acquisition of a minority stake in DT, spend of €61m on acquisitions, €19m on dividends and €17m on leasing contracts.
The period end cash position improved to €82m from €68m at the end of FY21.
Guidance and new forecasts
The completion of the sale of CIM and further M&A activity since management issued its FY22 financial guidance in February 2022 has necessitated an update to the guidance for the year.
Exhibit 2: Tinexta’s FY22 guidance
FY22 like-for-like growth (%) |
FY22 total growth (%) |
FY21 base |
FY22 at low end (€m) |
FY22 at high end (€m) |
|
February 2022 guidance: |
|||||
Revenue |
10–12% |
18–20% |
375.4 |
442.9 |
450.4 |
Adjusted EBITDA |
8–10% |
20–22% |
98.7 |
118.5 |
120.4 |
Net financial position/adjusted EBITDA |
c 2x |
236.9 |
240.9 |
||
August 2022 guidance: |
|||||
Revenue |
10–12% |
21–23% |
301.5 |
364.8 |
370.8 |
Adjusted EBITDA |
8–10% |
25–27% |
76.5 |
95.6 |
97.2 |
Net financial position/adjusted EBITDA |
N/M |
c 0.6x |
57.4 |
58.3 |
Source: Tinexta, Edison Investment Research
On an underlying basis, expected growth rates for FY22 revenue (10–12%) and adjusted EBITDA (8–10%) versus FY21 have been reiterated. The reiterated guidance for underlying growth despite the disposal of CIM, expected to generate the lowest growth of the prior four business units, implies some softening in growth expectations, likely due to the changing macroeconomic conditions.
On the restated (lower) FY21 base after stripping out CIM’s prior contribution, the new guidance implies a range for FY22 revenue of c €365–371m and adjusted EBITDA of €95.6–97.2m.
Our new estimates for FY22 revenue of €365m and EBITDA of €97m are in line with guidance. We have made no change to our prior estimates for the remaining business units, but have eliminated the contribution of CIM and added new estimates for the acquisition of Plannet in IMS.
Management’s estimated net financial position/EBITDA of 0.6x implies a net financial position of c €58m by year-end, which provides significant financial firepower for further M&A. The guidance includes the assumption that Intesa Sanpaolo will reinvest its proceeds (c €57m) from the (joint) transaction with Crif into Warrant Hub (in IMS business unit). For now, we do not include an estimate for the minority charge in our forecasts as we do not know the size of the stake Intesa Sanpaolo will take.
Valuation
Our DCF-based valuation for Tinexta reduces to €38 per share from €42 previously, which reflects the lower absolute EBITDA estimates, the lower pro forma net debt, an increase in the corporate tax rate in FY22 to 32% from 30%, and other changes to working capital and capex investment as a result of the recent M&A. We use a weighted average cost of capital of 7%, which includes a risk-free rate of 3%, market risk premium of 6% and beta (source: Refinitiv) of 0.7x.
Exhibit 3 shows Tinexta’s valuation relative to its peers in a number of competing industries.
Exhibit 3: Peer valuations
Company |
Share price (local) |
Currency |
Market cap (€m) |
Sales growth '22 (%) |
Sales growth '23 (%) |
EBITDA growth '22 (%) |
EBITDA growth '23 (%) |
EBITDA margin '22 (%) |
EBITDA margin '23 (%) |
EV/ sales '22 (x) |
EV/ sales '23 (x) |
EV/ EBITDA '22 (x) |
EV/ EBITDA '23 (x) |
P/E '22 (x) |
P/E '23 (x) |
Adobe Inc |
431 |
US$ |
196,736 |
12 |
14 |
12.8 |
14.6 |
49.1 |
49.4 |
11.2 |
9.8 |
22.8 |
19.9 |
31.4 |
26.7 |
DocuSign Inc |
71 |
US$ |
13,896 |
19 |
12 |
7.9 |
9.6 |
20.0 |
19.6 |
5.7 |
5.1 |
28.6 |
26.1 |
40.9 |
37.1 |
DT median |
16 |
13 |
10.3 |
12.1 |
34.5 |
34.5 |
8.5 |
7.5 |
25.7 |
23.0 |
36.1 |
31.9 |
|||
Alkemy SpA |
14 |
€ |
76 |
13 |
9 |
35.5 |
15.3 |
11.5 |
12.1 |
0.9 |
0.8 |
7.8 |
6.8 |
12.2 |
10.1 |
Be Shaping the Future SpA |
3 |
€ |
428 |
8 |
7 |
15.3 |
12.4 |
16.8 |
17.6 |
1.9 |
1.7 |
11.1 |
9.9 |
29.8 |
25.4 |
IMS median |
11 |
8 |
25.4 |
13.9 |
14.2 |
14.9 |
1.4 |
1.3 |
9.5 |
8.3 |
21.0 |
17.7 |
|||
Reply SpA |
130 |
€ |
4,839 |
22 |
10 |
15.4 |
9.0 |
16.8 |
16.7 |
2.6 |
2.3 |
15.4 |
14.1 |
27.5 |
24.8 |
secunet Security Networks AG |
307 |
€ |
1,968 |
7 |
26 |
-5.2 |
28.0 |
19.4 |
19.7 |
5.2 |
4.2 |
27.0 |
21.1 |
47.8 |
37.3 |
CS median |
14 |
18 |
5.1 |
18.5 |
18.1 |
18.2 |
3.9 |
3.3 |
21.2 |
17.6 |
37.7 |
31.1 |
|||
Tinexta |
24.6 |
€ |
1,161 |
21 |
12 |
27.2 |
16.3 |
26.6 |
27.7 |
3.9 |
3.5 |
14.8 |
12.7 |
27.4 |
20.7 |
Source: Refinitiv, Edison Investment Research. Note: Priced at 4 August 2022.
Our sum-of the-parts valuation when applying the above peer group multiples to our forecasts for Tinexta is c €34 per share, versus €38/share previously.
Exhibit 4: Sum-of-the-parts valuation
EBITDA |
EBITDA multiple |
Valuation |
|||||||
FY22e |
FY23e |
FY22e |
FY23e |
FY22e |
FY23e |
FY22e |
FY23e |
||
€m |
€m |
x |
x |
€m |
€m |
€/share |
€/share |
Comments |
|
Digital Trust |
46.1 |
52.1 |
25.7 |
23.0 |
1,185.7 |
1,198.0 |
25.1 |
25.4 |
|
Innovation & Marketing Services |
51.1 |
57.4 |
9.5 |
8.3 |
483.2 |
477.4 |
10.2 |
10.1 |
|
Cyber Security |
13.1 |
18.4 |
21.2 |
17.6 |
278.1 |
322.8 |
5.9 |
6.8 |
|
Total/ (average) |
110.3 |
127.8 |
18.8 |
16.3 |
1,947.0 |
1,998.3 |
41.2 |
42.3 |
|
Central costs |
(13.0) |
(14.6) |
16.9 |
14.7 |
(219.8) |
(213.7) |
(4.7) |
(4.5) |
10% discount to average multiple |
97.3 |
113.2 |
17.7 |
15.8 |
1,727.1 |
1,784.6 |
36.6 |
37.8 |
||
Associate |
7.2 |
7.2 |
0.2 |
0.2 |
|||||
Minorities |
(91.6) |
(94.4) |
(1.9) |
(2.0) |
Proforma for Bregal |
||||
Net cash/ (debt) |
(36.8) |
(36.8) |
(0.8) |
(0.8) |
Proforma for Crif and Intesa Sanpaolo |
||||
Market value |
1,605.9 |
1,660.5 |
34.0 |
35.2 |
|||||
Shares (m) |
47.2 |
47.2 |
|||||||
Implied share price (€) |
34.0 |
35.2 |
|||||||
Source: Refinitv, Edison Investment Research. Note: Priced at 4 August 2022.
Exhibit 5: Financial summary
€m |
2019 |
2020 |
2021 |
2022e |
2023e |
2024e |
||
31-December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||||
Revenue |
|
|
258.7 |
269.0 |
375.4 |
365.3 |
408.2 |
455.8 |
Operating costs |
(181.9) |
(187.8) |
(276.6) |
(267.9) |
(295.0) |
(327.2) |
||
EBITDA |
|
|
76.8 |
81.2 |
98.7 |
97.3 |
113.2 |
128.6 |
EBITDA (not adjusted) |
|
|
71.3 |
77.9 |
93.0 |
90.5 |
110.4 |
125.8 |
Operating profit (before amort. and excepts.) |
|
|
59.0 |
62.2 |
74.3 |
71.9 |
87.6 |
101.8 |
Amortisation of acquired intangibles |
(5.9) |
(6.0) |
(11.7) |
(11.7) |
(11.7) |
(11.7) |
||
Exceptionals |
(2.0) |
(2.4) |
(2.9) |
(4.0) |
0.0 |
0.0 |
||
Share-based payments |
(3.6) |
(0.9) |
(2.8) |
(2.8) |
(2.8) |
(2.8) |
||
Reported operating profit |
47.5 |
52.9 |
56.9 |
53.4 |
73.1 |
87.4 |
||
Net Interest |
(4.1) |
0.6 |
(3.3) |
(4.2) |
(3.7) |
(2.7) |
||
Joint ventures & associates (post tax) |
(1.1) |
(1.0) |
(0.2) |
(0.2) |
(0.2) |
(0.2) |
||
Exceptionals |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
55.0 |
58.4 |
70.4 |
67.4 |
83.7 |
98.9 |
Profit Before Tax (reported) |
|
|
42.2 |
52.5 |
53.4 |
49.0 |
69.2 |
84.4 |
Reported tax |
(13.4) |
(14.6) |
(13.8) |
(15.7) |
(20.1) |
(24.5) |
||
Profit After Tax (norm) |
38.3 |
40.6 |
49.5 |
45.9 |
59.4 |
70.2 |
||
Profit After Tax (reported) |
28.8 |
37.9 |
39.6 |
33.3 |
49.1 |
60.0 |
||
Minority interests |
(0.6) |
(0.6) |
(1.3) |
(4.6) |
(5.2) |
(6.0) |
||
Discontinued operations |
0.0 |
0.0 |
0.0 |
90.0 |
0.0 |
0.0 |
||
Net income (normalised) |
37.7 |
40.0 |
48.2 |
41.2 |
54.1 |
64.3 |
||
Net income (reported) |
28.2 |
37.3 |
38.3 |
118.7 |
43.9 |
54.0 |
||
Average Number of Shares Outstanding (m) |
47.0 |
47.1 |
47.2 |
45.9 |
45.6 |
45.4 |
||
EPS - normalised (c) |
|
|
80.3 |
85.5 |
104.4 |
89.8 |
118.7 |
141.6 |
EPS - normalised fully diluted (c) |
|
|
80.3 |
84.9 |
102.0 |
89.8 |
118.7 |
141.6 |
EPS - basic reported (€) |
|
|
0.60 |
0.80 |
0.83 |
2.59 |
0.96 |
1.19 |
Dividend (€) |
0.00 |
0.26 |
0.30 |
0.30 |
0.32 |
0.39 |
||
Revenue growth (%) |
8.4 |
4.0 |
39.5 |
(-2.7) |
11.7 |
11.7 |
||
EBITDA Margin before non-recurring costs (%) |
29.7 |
30.2 |
26.3 |
26.6 |
27.7 |
28.2 |
||
Normalised Operating Margin |
22.8 |
23.1 |
19.8 |
19.7 |
21.5 |
22.3 |
||
BALANCE SHEET |
||||||||
Fixed Assets |
|
|
316.7 |
325.8 |
591.0 |
655.0 |
635.3 |
616.6 |
Intangible Assets |
269.9 |
285.1 |
538.5 |
607.5 |
590.7 |
573.4 |
||
Tangible Assets |
21.2 |
19.0 |
25.2 |
20.2 |
17.3 |
15.8 |
||
Investments & other |
25.6 |
21.7 |
27.4 |
27.4 |
27.4 |
27.4 |
||
Current Assets |
|
|
139.4 |
196.1 |
213.2 |
425.8 |
495.1 |
556.1 |
Stocks |
1.1 |
1.2 |
1.3 |
1.3 |
1.3 |
1.3 |
||
Debtors |
89.8 |
84.1 |
119.5 |
125.1 |
139.8 |
156.1 |
||
Cash & cash equivalents |
33.6 |
92.8 |
68.3 |
275.2 |
329.9 |
374.5 |
||
Other financial assets |
6.6 |
7.3 |
4.1 |
4.1 |
4.1 |
4.1 |
||
Other |
8.2 |
10.7 |
20.0 |
20.0 |
20.0 |
20.0 |
||
Current Liabilities |
|
|
(160.4) |
(154.9) |
(207.5) |
(205.1) |
(215.4) |
(226.8) |
Creditors |
(92.7) |
(106.7) |
(146.8) |
(144.4) |
(154.6) |
(166.0) |
||
Tax and social security |
(2.9) |
(5.1) |
(3.6) |
(3.6) |
(3.6) |
(3.6) |
||
Short term borrowings |
(62.0) |
(40.4) |
(54.1) |
(54.1) |
(54.1) |
(54.1) |
||
Other |
(2.9) |
(2.7) |
(3.1) |
(3.1) |
(3.1) |
(3.1) |
||
Long Term Liabilities |
|
|
(146.2) |
(193.2) |
(353.1) |
(353.1) |
(353.1) |
(353.1) |
Long term borrowings |
(107.0) |
(150.5) |
(281.5) |
(281.5) |
(281.5) |
(281.5) |
||
Other long term liabilities |
(15.8) |
(14.3) |
(30.2) |
(30.2) |
(30.2) |
(30.2) |
||
Net Assets |
|
|
149.4 |
173.9 |
243.7 |
522.6 |
562.0 |
592.8 |
Minority interests |
(3.9) |
(4.0) |
(47.0) |
(91.6) |
(94.4) |
(92.8) |
||
Shareholders' equity |
|
|
145.6 |
169.8 |
196.7 |
431.0 |
467.6 |
500.0 |
CASH FLOW |
||||||||
Operating Cash Flow |
|
|
55.2 |
81.6 |
72.5 |
69.4 |
88.5 |
98.9 |
Capex and intangibles |
(13.5) |
(14.9) |
(16.2) |
(20.2) |
(17.6) |
(19.7) |
||
Acquisitions/disposals |
0.0 |
(3.3) |
(92.8) |
146.1 |
0.0 |
0.0 |
||
Net interest |
(2.5) |
(1.9) |
(2.3) |
(4.2) |
(3.7) |
(2.7) |
||
Equity financing |
1.1 |
(10.0) |
(9.3) |
(10.0) |
(10.0) |
(10.0) |
||
Dividends |
(16.4) |
(2.2) |
(12.5) |
(19.2) |
(7.5) |
(22.0) |
||
Borrowings |
23.7 |
35.4 |
42.9 |
0.0 |
0.0 |
0.0 |
||
Other |
1.7 |
11.2 |
6.6 |
45.0 |
5.0 |
0.0 |
||
Net Cash Flow |
(1.5) |
59.2 |
(24.6) |
206.9 |
54.7 |
44.6 |
||
Opening net debt/(cash) |
|
|
124.9 |
129.1 |
91.9 |
263.3 |
56.4 |
1.7 |
Closing net debt/(cash) |
|
|
129.1 |
91.9 |
263.3 |
56.4 |
1.7 |
(42.9) |
Source: Tinexta, Edison Investment Research
|
|
Research: Investment Companies
Fidelity Emerging Markets (FEML) was transferred to Fidelity in October 2021. FEML mirrors the FAST EM Fund (FAST, £178m AUM at 30 June 2022), which has achieved a strong track record over the past 10 years, outperforming the MSCI Emerging Markets Index (MSCI EM Index) under lead fund manager, Nick Price. Russia’s invasion of Ukraine in February 2022, concerns about inflation and the outlook for global growth have shaken riskier assets and the MSCI EM Index is down 8.1% year to date (in GBP to end July). While FEML was not immune to the setback, Fidelity’s comprehensive team of 45 analysts, together with manager Nick Price and co-portfolio manager Chris Tennant, can react to market shocks efficiently, while identifying and investing in the widest range of attractively valued, high-quality EM growth opportunities.
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