Crealogix Holding AG (SIX:CLXN): FY18 revenues grew by 13.1% at constant currencies (guidance was 10–15%), to CHF87.1m (we forecast CHF88.1m). EBITDA eased by 4.2% to CHF7.0m (we forecast CHF11.8m), mainly driven by the switch to SaaS. We have updated our forecasts for the trading news along with the acquisition of 80% of Elaxy Business Solution & Services (Elaxy BS&S) that was announced early last month. We have cut our EPS forecasts by 50% in FY18, 46% in FY19 and by 31% in FY20, with the trading news outweighing the earnings enhancement from Elaxy BS&S. The stable, cash-generative nature of Elaxy BS&S balances the higher-risk, stronger growth profile of Innofis, which was acquired at the beginning of 2018.
Trading update: Local currency growth was 13.1%
All new business in Germany has been on a recurring basis; had it been on a traditional licence basis, revenues would have been CHF3.8m higher. This was due to a greater than anticipated switch to the SaaS, which meant that the 8.1% EBITDA margin was below the >10% management guidance.
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