Administer - No major suprises
Administer’s H2 figures were fairly in line with our expectations. Revenue amounted to EUR 36.6m (Evli EUR 37.1m), with growth of 27.0%. EBITDA amounted to EUR 1.3m (Evli EUR 1.1m). Administer updated its strategy, targeting revenue of EUR 100m and a 15% EBITDA-margin by 2026.
- Net sales in H2 amounted to EUR 36.6m (EUR 28.9m in H2/22), fairly in line with our estimates (Evli EUR 37.1m). Net sales in H2 grew 27.0% y/y. Growth was mainly inorganic.
- EBITDA and EBITA in H2 were EUR 1.3m (H2/22: EUR 2.7m) and EUR 0.3m (H2/22: EUR 2.1m) respectively, fairly in line with our estimates (Evli EUR 1.1m/0.2m). Profitability was burdened by one-off costs relating to the cost savings programme and certain amortizations.
- Operating profit in H2 amounted to EUR -1.7m (EUR 0.6m in H2/22), in line with our estimates (Evli EUR -1.9m).
- Administer updated its strategy for 2024-2026, seeking to reach a revenue of EUR 100m (~10% p.a. on average) and an EBITDA-margin of 15% (2023: 3.8%), with the latter much more reasonable compared with the former target of 24% by 2024. The new targets are in our view quite reasonable, under normal circumstances Administer should reasonably be able to generate and EBITDA-margin of >10% and the growth should be achievable with continued M&A activity.
- Guidance for 2024: Net sales is estimated to be EUR 76-81m and EBITDA-margin to be 6-9%, with our estimates (EUR 80.4m and 7.9%) within the upper half of the range.
- Dividend proposal: Administer’s BoD proposes that no dividend be paid for FY 2023 (Evli EUR 0.00)