Sparks

Lime Technologies reported Q424 revenue growth of 18.9% y-o-y, with an EBITA margin of 25.6% and growth in annual recurring revenue of 30% y-o-y. For FY24, revenue was 18.8% higher (beating the 18% target), the EBITA margin was 25% (meeting the 25% target) and recurring revenue made up 65% of the total. With EPS up 7.2% y-o-y, the company announced a dividend of SEK4.0, up from SEK3.5 last year, payable in two instalments in May and November. Lime Technologies continued to invest in the business during 2024, acquiring Sportadmin (a Swedish sports club management software business) in Q124 and Plan Plan (a Dutch swimming school software business) in Q424.

Management noted that, while 2024 had been a tough year, the trading environment was starting to improve. Sales cycles have started to reduce, particularly in Sweden, and the pipeline is building in Germany. The January 2025 cyber incident that hit the Sportadmin division has been substantially resolved and management does not believe it will have a material impact on revenue or costs for Q125. However, it remains to be seen what impact it will have on this year’s annual renewals. The incident was restricted to the Sportadmin platform, which makes up 8–10% of group revenue.

Lime Technologies continues to target international expansion and aims to generate strong growth, while maintaining its margins. The stock currently trades on a P/E of 37x FY25e and 30x FY26e, reflecting its history of strong profitable growth (revenue CAGR 19% over 20 years with an average EBITA margin of 25%).