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Tinexta — Growth affected by temporary issues

Tinexta (MIL: TNXT)

Last close As at 20/12/2024

EUR7.69

▲ −0.31 (−3.88%)

Market capitalisation

EUR364m

More on this equity

Research: TMT

Tinexta — Growth affected by temporary issues

Tinexta’s H124 results highlighted a weaker revenue profile in Q2 than Q1, mainly due to what management believes are temporary effects, as well as the high level of seasonality in some of the individual businesses. The temporary effects include: 1) a slight delay intra-year to expected new revenues, with management reiterating its underlying growth expectations for the year; and 2) deferred growth from ABF Group by six months due to the political changes in France. The latter leads to a reduction in adjusted EBITDA estimates of 5%, but management continues to guide to a strong year of growth of over 20% including ABF Group.

Russell Pointon

Written by

Russell Pointon

Director of Content, Consumer and Media

TMT

Tinexta

Growth affected by temporary issues

H124 results

Professional services

6 August 2024

Price

€11.95

Market cap

€543m

Net debt (€m) at 30 June 2024

276.9

Shares in issue

45.5m

Free float

44.3%

Code

TNXT

Primary exchange

Euronext STAR Milan

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(28.4)

(33.6)

(33.4)

Rel (local)

(22.3)

(28.7)

(38.9)

52-week high/low

€20.52

€11.95

Business description

Tinexta provides innovative solutions for the digital transformation and growth of companies, professionals and institutions. It has three divisions: Digital Trust, Business Innovation and Cyber Security.

Next events

Q324 results

8 November 2024

Analysts

Russell Pointon

+44 (0)20 3077 5700

Milo Bussell

+44 (0)20 3077 5700

Tinexta is a research client of Edison Investment Research Limited

Tinexta’s H124 results highlighted a weaker revenue profile in Q2 than Q1, mainly due to what management believes are temporary effects, as well as the high level of seasonality in some of the individual businesses. The temporary effects include: 1) a slight delay intra-year to expected new revenues, with management reiterating its underlying growth expectations for the year; and 2) deferred growth from ABF Group by six months due to the political changes in France. The latter leads to a reduction in adjusted EBITDA estimates of 5%, but management continues to guide to a strong year of growth of over 20% including ABF Group.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/22

357.2

73.6

1.06

0.51

11.2

4.3

12/23

395.8

78.0

1.03

0.46

11.7

3.8

12/24e

469.7

91.4

1.14

0.17

10.5

1.4

12/25e

518.4

104.9

1.31

0.31

9.1

2.6

Note: *PBT and EPS (fully diluted) are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Weaker trends in Q224

Tinexta’s year-on-year revenue growth of 8.5% to €104.6m in Q224 was driven by the contribution from M&A, while underlying revenue declined marginally. Digital Trust’s (DT’s) reliable organic revenue growth (10%) was the highlight, while there were underlying declines for both Cyber Security (CS) of 2% and Business Innovation (BI) of 9%. BI continues to be affected by the phasing and delays of government-supported subsidised financing schemes in Italy (see Q124 results), and the expected contribution from its new acquisition, ABF Group, has been hampered by the political changes in France. Management views both as temporary. It is confident the benefits of new subsidised finance schemes in Italy will come through from mid-August and the French political changes have delayed the expected growth from ABF Group by six months. The trends in underlying revenue growth of the three divisions were reflected in their respective profitability, and the resulting mix changes gave an underlying c 17% decline in adjusted EBITDA. The period end net debt position increased to c €277m (€102m at end-FY23) as a result of the lower free cash generation and spend on M&A.

FY24 guidance reduced due to lower M&A

Management has reiterated its prior guidance for most of the group but provided a lower range for the expected contribution by ABF Group, giving a downgrade to group adjusted EBITDA of c 5% for FY24–26 at the midpoint. Excluding ABF Group, the new guidance is for year-on-year revenue growth of 11–15% and adjusted EBITDA of 10–14% (ie a lower margin). Including ABF Group, the growth rates are 20% and 22%, respectively.

Valuation: Good upside to reduced DCF valuation

Incorporating our lower profit estimates, the updated financial position and moving the valuation forward leads to a reduction in our discounted cash flow-based (DCF-based) valuation to c €27 per share from €29.3 previously.

Weaker trends in Q224

Income statement

Tinexta reported total revenue growth of c 11% in H124 to €203m and a c 9% decline in adjusted EBITDA to c €34m. On an underlying basis, revenue grew by just over 2% to €203m and adjusted EBITDA fell by c 14% to c €34m. The decline in adjusted EBITDA carried through to a lower reported operating profit of c €1m, from c €15m in H123, and a reported loss before tax of €0.1m versus a profit of €14.5m H123.

Exhibit 1: Summary income statement

€m

Q123

Q223

H123

Q124

Q224

H124

Group revenue

86.1

96.4

182.5

98.4

104.6

203.0

Growth y-o-y

10.1%

7.3%

8.6%

14.4%

8.5%

11.3%

Organic y-o-y

10.1%

7.3%

8.6%

4.7%

(0.2%)

2.1%

M&A y-o-y

0.0%

0.0%

0.0%

9.7%

8.6%

9.1%

Group adjusted EBITDA

15.0

23.0

37.9

15.4

19.1

34.4

Margin

17.4%

23.8%

20.8%

15.6%

18.3%

17.0%

Growth y-o-y

3.1%

1.8%

2.3%

2.7%

(16.8%)

(9.1%)

Organic y-o-y

3.1%

1.8%

2.3%

(10.8%)

(16.6%)

(14.3%)

M&A y-o-y

0.0%

0.0%

0.0%

13.5%

(0.2%)

5.2%

Reported EBITDA

13.5

21.0

34.5

8.6

25.8

34.4

Operating profit

4.3

11.0

15.2

(3.1)

4.0

0.9

Margin

5.0%

11.4%

8.3%

(3.1%)

3.8%

0.4%

Growth y-o-y

25.5%

(62.1%)

(3.7%)

(171.6%)

(63.9%)

(94.2%)

Net finance costs

(0.9)

0.3

(0.6)

0.3

(1.6)

(1.3)

Reported PBT

3.4

11.1

14.5

(2.6)

2.4

(0.1)

Tax

(1.3)

(3.9)

(5.2)

0.5

1.9

2.4

Tax rate

38.9%

34.8%

35.8%

21.4%

(78.0%)

1791.9%

Net profit from continuing operations

2.1

7.2

9.3

(2.0)

4.3

2.3

Minority interests

(0.8)

(1.6)

(2.4)

(0.6)

(1.4)

(2.0)

Source: Tinexta, Edison Investment Research

The results highlight weaker revenue trends in Q224, with overall revenue growth of over 8% to c €105m in Q224 versus Q124’s revenue growth of over 14%. The main cause for the slowdown in growth was the weaker underlying growth, which moved to a small negative for the period, that was more than offset by the important contribution from M&A of over 8%. The underlying revenue weakness was focused in two (CS and BI) of the three divisions, which are discussed in more detail in the following section. The weaker revenue growth in the period and resulting margin changes for the individual divisions led to a c 17% decline in adjusted EBITDA in Q224 to €19m. We remind readers that the three divisions have different levels of profitability on an annual basis (FY23: DT 30%, CS 17% and BI 37%), and the high Q4 weighting of revenue for both CS and BI typically leads to volatile margins between the financial quarters at the divisional and group level.

Tinexta’s higher net financial charges reflect the growth in its net financial position versus H123 (see Cash flow and balance sheet section below).

Divisional performance mixed

The key takeaway from Tinexta’s H124 results is that on an underlying basis, DT continued to generate strong revenue growth in Q224, but CS and BI were weaker than Q124. M&A, chiefly the acquisitions of Ascertia and ABF Group, were the main drivers of growth, albeit the contribution from the latter was lower than management had expected due to external influences.

Exhibit 2: Divisional financials

€m

Q123

Q223

H123

Q124

Q224

H124

Revenue

86.1

96.4

182.5

98.4

104.6

203.0

– Digital Trust

42.4

44.0

86.4

51.3

51.0

102.3

Organic y-o-y

11.6%

13.3%

12.4%

7.8%

10.0%

8.9%

M&A y-o-y

0.0%

0.0%

0.0%

13.2%

5.9%

9.5%

– Cyber Security

20.7

21.9

42.6

23.9

21.4

45.3

Organic y-o-y

14.9%

16.6%

15.8%

15.7%

(2.2%)

6.5%

M&A y-o-y

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

– Business Innovation

24.0

32.1

56.1

25.1

34.8

59.9

Organic y-o-y

6.4%

(2.1%)

1.3%

(7.1%)

(9.4%)

(8.4%)

M&A y-o-y

0.0%

0.0%

0.0%

11.4%

17.9%

15.1%

– Intra-group

(1.0)

(1.6)

(2.6)

(1.8)

(2.6)

(4.5)

Adjusted EBITDA

15.0

23.0

37.9

15.4

19.1

34.4

– Digital Trust

11.6

12.7

24.4

15.8

13.6

29.4

Margin

27.4%

28.9%

28.2%

30.8%

26.7%

28.8%

Organic y-o-y

12.3%

18.5%

15.5%

11.6%

9.1%

10.3%

M&A y-o-y

0.0%

0.0%

0.0%

24.2%

(2.0%)

10.5%

– Cyber Security

2.1

2.7

4.8

2.3

1.8

4.1

Margin

10.2%

12.3%

11.3%

9.7%

8.2%

9.0%

Organic y-o-y

79.2%

45.6%

59.1%

10.4%

(35.0%)

(15.1%)

M&A y-o-y

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

– Business Innovation

4.9

11.4

16.3

1.2

9.1

10.3

Margin

20.4%

35.5%

29.0%

4.8%

26.1%

17.1%

Organic y-o-y

(23.2%)

(16.3%)

(18.6%)

(59.5%)

(22.0%)

(33.3%)

M&A y-o-y

0.0%

0.0%

0.0%

(16.2%)

1.7%

(3.7%)

– Other

(3.7)

(3.9)

(7.5)

(4.0)

(5.4)

(9.3)

Source: Tinexta, Edison Investment Research

DT saw a nice improvement in organic revenue growth to 10% in Q224, from Q124’s c 8%, and was up against a tough comparative from Q223 of over 13%. The growth was across the board from LegalMail solutions, LegalCert solutions as well as Trusted OnBoarding Platform solutions for the enterprise market. There was a slightly lower revenue contribution from M&A, primarily Ascertia and Camerfirma Colombia, of c €2.6m in Q224 versus Q124’s €5.6m, which management attributed to the normal seasonality of the businesses. DT’s underlying profitability was broadly stable but a small loss from M&A, due to the aforementioned seasonality, led to a lower adjusted EBITDA margin of 26.7% versus 28.9% in Q223. For the half, the overall year-on-year increase in DT’s profitability reflected an improved underlying margin and the contribution from the higher-margin (c 31%) acquisitions.

CS’s revenue marginally declined by c 2% y-o-y in Q224, taking growth for the first six months to over 6%. For H124 management cited good growth from the resale of third-party products in implementation services, in cyber and digital resilience among others, as well as new sales through new internally developed platforms. The c 35% decline in adjusted EBITDA for Q224, taking the H124 decline to c 15%, was attributed to mix changes (ie more lower-margin products sold), as well as the dilutive effect from temporary greater use of third-party products.

BI’s revenue growth of c 8% in Q224 to c €35m was solely attributable to the c 18% contribution from M&A (three acquisitions including ABF Group) as underlying revenue fell by c 9%. Both were below management’s expectations, but, importantly, are viewed as temporary.

First, looking at BI’s underlying growth, the revenue decline was attributed to phasing issues in subsidised financing that were consistent with the commentary at the time of the Q124 results. Some underlying weakness was anticipated due to less attractive terms for its clients on existing government-supported, subsidised finance schemes for digital investment. This has been compounded by the deferred launch of new and additional subsidised finance schemes for energy investments, which have much more attractive terms for Tinexta’s clients. Management had expected some contribution from the latter in Q224, but now expects to see the first benefits in Q324. It remains confident that it can generate the same anticipated revenue for the year as previously, hence guidance for the year has not changed.

ABF Group’s revenue contribution of €5.6m and adjusted EBITDA loss of €1.3m were below management’s expectations, due to political changes in France (the government change in January and dissolution of the National Assembly at the end of June for election) and significant budget revisions at the end of February. These issues led to a postponement of national public financing decisions (France 2030), which has led to a delay in the launch of new project tenders and uncertainty over the maintenance of budgets for ongoing project tenders. Management believes these have delayed the expected growth from ABF Group by six months and therefore has downgraded its estimates for ABF Group in FY24 (see Guidance section below), with some flow through to outer years.

BI’s adjusted EBITDA fell by c 20% to €9.1m in Q224 due to a combination of the revenue declines above, the resulting mix changes (higher contribution from lower-margin business versus higher-margin subsidised finance) and operating costs being higher than expected.

Cash flow and balance sheet

The decline in profitability was the main reason for free cash flow from continuing operations almost halving to c €14m from c €8m in H123.

The main drivers to the increases in the net financial position to c €277m from €102m at the end of FY23 in addition to the free cash generation were acquisitions and put options of €158m and dividend payments of c €29m. On a trailing 12-month basis this represented 2.8x adjusted EBITDA.

Guidance: Underlying unchanged, ABF Group downgraded

Due to ABF Group’s H124 underperformance and the now anticipated delay to its revenue growth opportunities, management has reduced its FY24 expectations for ABF Group to revenue of c €25–29m (from c €37m) and adjusted EBITDA of c €10–12m (from c €18m). These represent downgrades for the subsidiary of c 27% and c 39%, respectively, at the mid-points of the new ranges.

At the start of the year, management was guiding to FY24 revenue growth of 21–23% (including 7% from organic) and adjusted EBITDA growth of 28–32% (including 10% from organic). The new updated guidance, which includes only the above change to expectations for ABF Group, is summarised as follows:

Exhibit 3: Management’s new guidance

Revenue growth

Adjusted EBITDA growth

Without ABF Group

11–15%

10–14%

With ABF Group

20%

22%

Source: Tinexta

Both sets of guidance do not include any further changes to the group structure from M&A since the start of the year, except for the known incremental contribution from Ascertia for seven months of FY24 having been consolidated since the start of August 2023, as well as ABF Group. The guidance therefore excludes the contributions by acquisitions such as Camerfirma Colombia and Lenovys, which have been consolidated since April 2024. Our reconciliation of the changes between the two sets of guidance is as follows:

Exhibit 4: Reconciling the guidance

€m

Low guidance

High guidance

Revenue FY23

395.8

395.8

FY24e growth start of year

21%

23%

Revenue FY24e start of year

478.9

486.8

Less prior ABF Group FY24e

(37.0)

(37.0)

Add new ABF Group FY24e

25.0

29.0

New revenue FY24e

466.9

478.8

Growth

18%

21%

Adjusted EBITDA FY23

103.0

103.0

FY24e growth start of year

28%

32%

Adjusted EBITDA FY24e start of year

131.8

136.0

Less prior ABF Group FY24e

(18.0)

(18.0)

Add new ABF Group FY24e

10.0

12.0

New EBITDA FY24e

123.8

130.0

Growth

20%

26%

Source: Tinexta, Edison Investment Research

In June 2024, management exercised the call option to acquire the remaining c 40% stake of the selling shareholders of Defence Tech Holding (DTH) following the acquisition of an initial 20% (associate) holding at the end of December 2022. The exercise of the call option has triggered a mandatory takeover of the remaining shares. In FY23, Defence Tech Holding generated revenue of €22.4m and adjusted EBITDA of €9m, a margin of c 40%. Tinexta’s management anticipates revenue growth for the business of c 12% through FY26, with a slightly lower adjusted EBITDA margin of 29%, thereby indicating revenue of over €31m in FY26 and adjusted EBITDA of c €9m. We will incorporate Defence Tech into our estimates when the mandatory takeover is complete.

In addition to the above guidance for the income statement, the natural follow on is for management to have adjusted its guidance for expected net financial position for the year-end to 1.9x adjusted EBITDA from 1.7–1.9x previously.

We have reduced our FY24 estimates to the mid-point of the new guided range for ABF Group, and flow these through to forecasts for future years as follows:

Exhibit 5: Changes to estimates

€m

FY23

FY24e (new)

FY25e (new)

FY26e (new)

FY24e (old)

FY25e (old)

FY26e (old)

Change FY24e

Change FY25e

Change FY26e

Revenue

395.8

469.7

518.4

570.2

479.4

529.1

582.0

(2.0%)

(2.0%)

(2.0%)

Growth y-o-y

18.7%

10.4%

10.0%

21.1%

10.4%

10.0%

Adjusted EBITDA

103.0

127.7

143.7

159.6

134.7

151.7

168.5

(5.2%)

(5.3%)

(5.3%)

Margin

26.0%

27.2%

27.7%

28.0%

28.1%

28.7%

28.9%

Growth y-o-y

24.0%

12.5%

11.1%

30.8%

12.7%

11.0%

Source: Tinexta, Edison Investment Research

Valuation

Incorporating the lower estimates, updated financial position and moving the valuation forward leads to a reduction in our DCF-based valuation to c €27 per share from €29.3 previously. Our estimated weighted average cost of capital (WACC) of 8% is unchanged as we incorporate a lower risk-free rate of 3.6% from 3.8%, equity risk premium of 6.8% from 7.8% (source: Damodaran) and higher beta of 0.8 from 0.7 (source: LSEG Data & Analytics), and we use a terminal growth rate of 2%. The sensitivity of the valuation to changes in the assumptions for the WACC and terminal growth rate are as follows:

Exhibit 6: DCF sensitivity (€ per share)

Terminal growth rate

1%

2%

3%

4%

5%

WACC

10.0%

17.0

18.5

20.4

23.0

26.5

9.5%

18.4

20.2

22.5

25.6

30.1

9.0%

20.0

22.1

24.9

28.7

34.5

8.5%

21.9

24.3

27.7

32.6

40.2

8.0%

23.9

26.9

31.1

37.4

47.8

7.5%

26.4

30.0

35.3

43.6

58.5

7.0%

29.2

33.7

40.5

51.8

74.4

6.5%

32.5

38.2

47.2

63.3

101.0

6.0%

36.5

43.9

56.1

80.6

154.1

5.5%

41.4

51.1

68.6

109.4

313.4

Source: Edison Investment Research

We can see in Exhibits 7 and 8 the year-to-date reduction in the share price of c 40% has led to Tinexta’s prospective multiples moving back below pre-COVID multiples.

Exhibit 7: Tinexta’s EV/sales multiple

Exhibit 8: Tinexta’s EV/EBITDA multiple

Source: Tinexta, Edison Investment Research, LSEG Data & Analytics. Note: Prices at 5 August 2024.

Source: Tinexta, Edison Investment Research, LSEG Data & Analytics. Note: Prices at 5 August 2024.

Exhibit 7: Tinexta’s EV/sales multiple

Source: Tinexta, Edison Investment Research, LSEG Data & Analytics. Note: Prices at 5 August 2024.

Exhibit 8: Tinexta’s EV/EBITDA multiple

Source: Tinexta, Edison Investment Research, LSEG Data & Analytics. Note: Prices at 5 August 2024.

Tinexta’s portfolio of companies has changed dramatically over time, so picking the right point in time from which to compare multiples is a little complicated, but management believes the group is now exposed to higher growth categories, and we note management’s guidance suggests a gradual improvement back towards prior (FY19 and FY20) levels of profitability. The prospective EV/sales multiples for FY24–26 of 1.5–1.8x compare with average multiples (figures shown in charts) of 2.5x and 2.9x in FY19 and FY20, and its prospective EV/EBITDA multiples of 5.2–6.6x compare with 8.3x and 9.5x in the same years. Both suggest potential for re-rating if management delivers on its medium-term growth expectations.

Exhibit 9: Financial summary

€m

2021

2022

2023

2024e

2025e

2026e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

301.5

357.2

395.8

469.7

518.4

570.2

Operating costs

(225.1)

(262.4)

(292.8)

(342.0)

(374.7)

(410.6)

Adjusted EBITDA

 

 

76.5

94.8

103.0

127.7

143.7

159.6

EBITDA

 

 

71.3

86.3

93.8

117.2

134.7

150.6

Operating profit (before amort. and excepts.)

 

 

61.1

77.6

79.6

100.6

115.1

130.2

Amortisation of acquired intangibles

(11.0)

(17.5)

(17.9)

(29.9)

(28.4)

(27.6)

Exceptionals

(2.6)

(6.4)

(5.0)

(5.5)

(4.5)

(4.5)

Share-based payments

(2.6)

(2.1)

(4.2)

(5.0)

(4.5)

(4.5)

Reported operating profit

45.0

51.6

52.4

60.2

77.7

93.6

Net Interest

(3.1)

(6.2)

(1.6)

(9.0)

(10.0)

(8.0)

Joint ventures & associates (post tax)

(0.2)

(0.2)

(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)

 

 

57.5

73.6

78.0

91.4

104.9

122.0

Profit Before Tax (reported)

 

 

41.7

45.1

50.6

51.0

67.5

85.4

Reported tax

(13.0)

(12.5)

(16.4)

(16.8)

(22.3)

(28.2)

Profit After Tax (norm)

40.3

52.2

54.5

61.3

70.3

81.8

Profit After Tax (reported)

28.7

32.6

34.3

34.2

45.2

57.2

Minority interests

(1.2)

(2.4)

(6.9)

(8.7)

(10.0)

(11.2)

Discontinued operations

10.0

45.5

35.6

0.0

0.0

0.0

Net income (normalised)

39.1

49.8

47.6

52.6

60.3

70.6

Net income (reported)

37.5

75.7

63.0

25.5

35.2

46.0

Average Number of Shares Outstanding (m)

47.2

46.8

46.4

46.3

46.0

45.8

EPS – normalised (c)

 

 

84.7

108.5

104.6

115.9

133.7

157.3

EPS – normalised fully diluted (c)

 

 

82.8

106.4

102.5

113.6

131.0

154.1

EPS – basic reported (€)

 

 

0.81

1.65

1.38

0.56

0.78

1.03

Dividend (c)

30.00

51.00

46.00

16.53

30.63

40.21

Revenue growth (%)

12.1

18.4

10.8

18.7

10.4

10.0

EBITDA Margin before non-recurring costs (%)

25.4

26.5

26.0

27.2

27.7

28.0

Normalised Operating Margin (%)

20.3

21.7

20.1

21.4

22.2

22.8

BALANCE SHEET

Fixed Assets

 

 

602.9

574.0

654.7

799.9

785.5

774.9

Intangible Assets

550.4

487.3

541.4

693.2

685.0

678.9

Tangible Assets

25.2

48.4

51.2

44.7

38.4

33.9

Investments & other

27.4

38.3

62.1

62.1

62.1

62.1

Current Assets

 

 

213.2

403.5

364.4

232.9

271.7

313.9

Stocks

1.3

1.9

2.1

2.1

2.1

2.1

Debtors

119.5

129.5

148.3

176.3

194.6

214.0

Cash & cash equivalents

68.3

115.3

161.7

2.2

22.7

45.4

Other financial assets

4.1

125.8

26.0

26.0

26.0

26.0

Other

20.0

31.0

26.4

26.4

26.4

26.4

Current liabilities

 

 

(207.5)

(260.9)

(314.2)

(328.9)

(331.1)

(336.2)

Creditors

(146.8)

(156.4)

(184.2)

(203.8)

(211.1)

(221.2)

Tax and social security

(3.6)

(2.9)

(2.9)

(2.9)

(2.9)

(2.9)

Short term borrowings

(54.1)

(93.6)

(121.3)

(116.3)

(111.3)

(106.3)

Other

(3.1)

(8.0)

(5.8)

(5.8)

(5.8)

(5.8)

Long-term liabilities

 

 

(357.9)

(314.6)

(249.5)

(249.5)

(249.5)

(249.5)

Long-term borrowings

(281.5)

(235.2)

(172.9)

(172.9)

(172.9)

(172.9)

Other long-term liabilities

(35.0)

(42.4)

(36.0)

(36.0)

(36.0)

(36.0)

Net Assets

 

 

250.8

402.0

455.4

454.5

476.6

503.0

Minority interests

(46.9)

(36.4)

(45.7)

(45.7)

(45.7)

(45.7)

Shareholders' equity

 

 

203.9

365.7

409.7

408.8

430.9

457.4

CASH FLOW

Operating Cash Flow

 

 

72.5

72.8

75.1

79.5

86.7

96.4

Capex and intangibles

(16.2)

(24.1)

(38.2)

(28.0)

(23.6)

(25.4)

Acquisitions/disposals

(92.8)

84.5

24.4

(157.0)

0.0

0.0

Net interest

(2.3)

(2.4)

0.3

(9.0)

(10.0)

(8.0)

Equity financing

(9.3)

(8.1)

(3.1)

(10.0)

(10.0)

(10.0)

Dividends

(12.5)

(20.8)

(33.4)

(30.0)

(17.6)

(25.3)

Borrowings

42.9

(40.2)

(41.4)

0.0

0.0

0.0

Other

6.6

1.4

130.1

0.0

0.0

0.0

Net Cash Flow

(24.6)

48.6

44.7

(159.5)

20.5

22.7

Opening net debt/(cash)

 

 

91.9

264.4

77.6

102.0

256.6

231.0

Closing net debt/(cash)

 

 

264.4

77.6

102.0

256.6

231.0

203.3

Source: Tinexta accounts, Edison Investment Research


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This report has been commissioned by Tinexta and prepared and issued by Edison, in consideration of a fee payable by Tinexta. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

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No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

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This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Tinexta and prepared and issued by Edison, in consideration of a fee payable by Tinexta. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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