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Third party research

Awardit: Sales and EBITA in line, FCF softer - ABG

Awardit

This is a third party research report and does not necessarily reflect our views or values

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Adj. EBITA of SEK 63m, 0% vs. ABGSCe in Q4
FCF was softer because of negative working capital effect
EBITA ests -4-5%; share is trading at 4.7x-2.7x '24e-'26e EV/EBITA


Sales and EBITA in line

Sales of SEK 428m (-1% vs. ABGSCe) and adj. EBITA of SEK 63m (0% vs. ABGSCe) in Q4 were both in line with our estimates. Sales increased 40% y-o-y (or 45% vs. the restated Q4'22 comps), mainly driven by M&A growth (+41%), while organic growth was -3% (vs. ABGSCe -2%). Breaking down the performance, most segments performed in line with expectations: 'core' Awardit continued to deliver solid growth of 13%, albeit with lower profitability as the segment is burdened by increased costs for central functions. Meanwhile, MBXP and Prämie saw declining sales and neutral EBITA, while Connex and IPO contributed SEK 23m in EBITA, all relatively in line with forecasts. Looking at 2024, we expect a good performance for 'core' Awardit and Connex, a stable performance for IPO and MBXP, and potential for some recovery in Prämie. Management said Q1 has started well with 2% organic growth in January.
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Inderes’ Disclaimer can be found here. Detailed information about each share actively monitored by Inderes is available on the company-specific pages on Inderes’ website. © Inderes Oyj. All rights reserved.