Loihde - Guidance on the softer side
Loihde’s Q4 results were in line with our estimates on topline figures, with growth of 3% while the adj. EBITDA came in below our estimates at 3.8m (Evli EUR 4.4.). Group revenue is expected to be flat or grow in 2024 and adj. EBITDA to improve.
- Group results: Loihde’s net sales came in line with our expectations. Net sales grew by 3% to EUR 37.3m (Evli: 37.3m). The growth as expected came from SeSo. Profitability continued to improve but the adj. EBITDA came in below our expectations, at EUR 3.8m (Evli: EUR 4.4m), reflecting a rather healthy margin of 10.1%.
- Security Solutions (SeSo): Net sales came in in line with our expectations and grew by 5% to EUR 26.7m (Evli: 26.8m). Q4 was as typical seasonally stronger, with customers pushing to complete project before the year-end and Loihde performed well in several customer and offering segments. Two important framework agreements were signed towards the end of the year, valued in total at over EUR 10m.
- Digital Development (DiDe): Net sales declined by 2% to EUR 10.4m and came in roughly in line with our estimates (Evli: EUR 10.6m). The decline was due to continued demand challenges in bespoke software development in particular, stemming from market uncertainty. No significant improvement towards the better is seen in early 2024. The market situation in data and analytics services remains slightly more positive.
- 2024 guidance: Group revenue is expected to be on par with 2023 or grow (Evli +6.6% y/y). The Group’s adjusted EBITDA is estimated to improve from 2023 (Evli +EUR 3m y/y).
- Dividend proposal: Loihde’s BoD proposes a dividend of EUR 1.0 per share (Evli EUR 0.15).