The Platform Group — Strong growth and higher margin in FY24

The Platform Group (FRA: TPG)

Last close As at 29/04/2025

EUR9.92

0.22 (2.27%)

Market capitalisation

EUR199m

More on this equity

Research: Consumer

The Platform Group — Strong growth and higher margin in FY24

The Platform Group’s (TPG’s) FY24 results and increased guidance for FY25 and FY26 demonstrate the strengths of the model, with more platforms in more industries serving more suppliers and customers. These combined to provide strong revenue growth, more weighted towards M&A than management’s medium-term target for an equal contribution from organic growth and M&A. Management has high optimism for the year ahead given a still-favourable market for M&A and the launch of new solutions.

Russell Pointon

Written by

Russell Pointon

Director of Content, Consumer and Media

Retail

Spotlight — update

28 April 2025

Price €9.82
Market cap €200m
Price Performance
Share details
Code TPG
Listing FSE

Shares in issue

20.4m

Net cash/(debt) (excluding value of holding in Mister Spex)

€(83.6)m

Business description

The Platform Group is a leading European online e-commerce platform company. Its software solutions connect partners in many sectors to new e-commerce customers across numerous online channels. Its services include marketing, customer support, payment and delivery.

Bull points

  • Connects commercial partners that lack scale to access a high number of online stores.
  • Large (c 13,500) and growing number of commercial partners across many industries.
  • Investment requirements beyond M&A are low, in particular software for platform solutions.

Bear points

  • E-commerce markets are competitive.
  • M&A aspirations (five to eight acquisitions per year) present execution risk.
  • Expansion into new business verticals and geographies may bring different operational challenges and financial rewards.

Analysts

Russell Pointon
+44 (0)20 3077 5700
Nick Hawkins
+44 (0)20 3077 5700

The Platform Group is a research client of Edison Investment Research Limited

Strong growth with higher margins in FY24

Headline figures for FY24 had already been indicated at TPG’s capital markets day in January 2025 so this note is more about examining the detail. The improvement in adjusted EBITDA margin to 6.3% from 5.1% in FY23 was driven by a significant improvement in gross margin (+450bp for FY24 and +820bp in H224), as FY23 included a high level of one-off and low-margin car sales. This was offset by deleveraging, ie increasing relative to revenue by all other cost lines. The improvement in adjusted EBITDA margin was broad-based across the industry verticals with only Freight Goods seeing modest dilution from FY23 pro forma figures and FY24 figures indicating seasonally lower adjusted EBITDA margins in H224 versus H124 for all four verticals. According to management, the non-recurrence of FY23 car sales was the main cause of the significant drop in operating cash generation, from €104m to €58m. Return on capital employed fell to 19.8% in FY24, partly due to the higher net debt to fund acquisitions, but remains at around management’s desired level of 15%.

FY25 and FY26 guidance increased again

To reflect the five acquisitions made so far this year and unquantified strong trading start to the year, management has increased guidance again. FY25 guidance for gross merchandise value (GMV, €1.3bn), revenue (€80–700m) and adjusted EBITDA (€47–50m) has increased by 8%, 15% and 18%, respectively, at the midpoint from the January update, indicating a better revenue take (revenue/GMV) and a higher margin than previously. FY26 guidance for GMV (€1.6bn), revenue (€820m) and adjusted EBITDA (€57.4–82.0m) has increased by 7%, 17% and 17%, respectively. FY26 guidance continues to include a wider range for the adjusted EBITDA margin of 7–10% compared to FY24’s 6.3% and FY25’s guided c 7%.

Good relative value

With a prospective EV/EBITDA multiple for FY25 of 5.9x, TPG remains at a significant discount of c 40% to the median of the non-food peers.

Source: Company accounts and guidance. Forecasts are at the midpoint of management’s guidance.

Financials

Year end Revenue (€m) EBITDA (€m) PBT (€m) EPS (€) EV/EBITDA (x) P/E (x)
12/23 440.8 22.6 33.0 1.48 12.6 6.6
12/24 524.6 33.2 36.3 1.60 8.6 6.1
12/25e 690.0 48.5 - - 5.9
12/26e 820.0 69.7 - - 4.1

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United Kingdom

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