Proact - Focus on internal improvements
14 juli, 15:45
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...
Two different pictures in the companyWhile both Nordics & Baltics and the UK progressed well with positive organic growth and improved earnings y-o-y in Q2, Proact continued to struggle in segments West (the Netherlands) and Central (mainly Germany). It announced non-recurring costs of SEK 25m in Q2 to address the suboptimal organisation in these markets, to meet lower demand, and we estimate that this corresponds to around 20 employees (2% of the organisation). In terms of M&A, Proact sounded positive on areas where it has good momentum, i.e. Nordics & Baltics and the UK, while we would not be surprised to see a divestment of either the Dutch or the German business, although the company played it down. Improving the margins by shrinking the business would be possible to some degree, but reducing the business in a large market like Germany would make Proact a less known supplier, in our view. Adj. EBITA relatively neutral, reported earnings cutAs a result of the in-line sales and slightly better adj. EBITA in Q2, offset by larger restructuring costs than we expected (negative for sales ahead), we cut our sales estimates by a mere ~0.5%, while we increase 2025e adj. EBITA by 2% due to the Q2 beat but reduce 2026e-27e adj. EBITA by 1%. On reported earnings, both affected by non-recurring costs in 2025e and larger amortisations, we cut 2025e EBIT by 11% and 2026e-27e by 5-6%. Cash generative and active on shareholder returnsProact's LTM lease adj. FCF is trending at ~SEK 275m (10.5% lease adj. FCF yield), which creates financial headroom for dividends, buybacks and acquisitions. We expect all of these to continue, combined with the ongoing internal improvements to raise organic growth and margin metrics. On our revised estimates, the share is trading at 7.8x 2025e EV/adj. EBITA and a 9.2% 2026e lease adj. FCF y |
Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.
Ämnen i artikeln
Proact - Focus on internal improvements
14 juli, 15:45
|
...
Two different pictures in the companyWhile both Nordics & Baltics and the UK progressed well with positive organic growth and improved earnings y-o-y in Q2, Proact continued to struggle in segments West (the Netherlands) and Central (mainly Germany). It announced non-recurring costs of SEK 25m in Q2 to address the suboptimal organisation in these markets, to meet lower demand, and we estimate that this corresponds to around 20 employees (2% of the organisation). In terms of M&A, Proact sounded positive on areas where it has good momentum, i.e. Nordics & Baltics and the UK, while we would not be surprised to see a divestment of either the Dutch or the German business, although the company played it down. Improving the margins by shrinking the business would be possible to some degree, but reducing the business in a large market like Germany would make Proact a less known supplier, in our view. Adj. EBITA relatively neutral, reported earnings cutAs a result of the in-line sales and slightly better adj. EBITA in Q2, offset by larger restructuring costs than we expected (negative for sales ahead), we cut our sales estimates by a mere ~0.5%, while we increase 2025e adj. EBITA by 2% due to the Q2 beat but reduce 2026e-27e adj. EBITA by 1%. On reported earnings, both affected by non-recurring costs in 2025e and larger amortisations, we cut 2025e EBIT by 11% and 2026e-27e by 5-6%. Cash generative and active on shareholder returnsProact's LTM lease adj. FCF is trending at ~SEK 275m (10.5% lease adj. FCF yield), which creates financial headroom for dividends, buybacks and acquisitions. We expect all of these to continue, combined with the ongoing internal improvements to raise organic growth and margin metrics. On our revised estimates, the share is trading at 7.8x 2025e EV/adj. EBITA and a 9.2% 2026e lease adj. FCF y |
Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.
Ämnen i artikeln
Swedbank
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Swedbank
Mest läst
Rapportperioden
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1 mån
Privatekonomi med Placeras expert
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