Datagroup AG (DE:D6HG) performed in line with expectations in H1, with revenue growing by 24%, including 1.5% organic growth, or 5–6% when adjusting for discontinued activities from acquisitions. Management conservatively maintained revenue guidance, despite 50% of this already being generated in H1, with ALMATO only contributing for one month in the period. While the rating looks fairly priced at c 10x EBITDA, DATAGROUP offers an excellent track record, high recurring revenues, a clear focus on the large German Mittelstand sector and an increasing number of key differentiators following the acquisitions of ikb Data and ALMATO.
H1 results: Organic growth was 1.5%
Revenue grew by 23.6% to €133.5m and EBITDA rose 35% as margins expanded from 10.6% to 11.6%. The company signed 12 new CORBOX customers during the period and significantly extended business with nine existing customers. The group ended the period with net debt of €14.5m, up from €10.6m at end-September.
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