Proact IT Group
Proact - Another strong report and closed M&A (ABG Sundal Collier)
2020-10-23 08:44
Q3: Adj. EBITA +32% vs cons, driven by lower costs
Acquires Cetus in the UK at 8x EV/EBITA, +5% to group
Consensus likely to raise estimates around 10%
Q3 detailsSales SEK 821m (0% vs ABG 824m, 4% vs cons 790m), Adj. EBITA SEK 54m (17% vs ABG 46m, 32% vs cons 41m), Adj. EBITA margin 6.6% (ABG 5.6%, cons 5.2%). Organic sales growth 7%. Adj. EBITA +46% y-o-y. Lower cloud orders (-30% y-o-y) due to COVID-19, but also significantly lower sales costs due to the pandemic improved margins.
Acquires Cetus Solutions at 8x EV/EBITA
Proact also announcing the acquisition of the UK company Cetus Solutions at 8x EV/EBITA, adding 4% to sales and 5% to EBITA. The business improves Proact’s offering to mid- and large sized businesses and public sector in the UK. Cetus adds 25% to Proact’s UK business, and improves group margins, which is in line with Proact’s long-term strategy.
Consensus likely to come up around 10%
Proact reiterates its long-term financial targets, and we estimate that consensus will raise estimates by around 10% post the report and acquisition. Conf call at CET 11.15.
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