SNP Schneider (DE:SHFG) has undertaken a series of acquisitions over the last few years that have transformed the scale and the geographical footprint of the business. The goal is to position the group for the anticipated surge in data migrations globally, particularly around SAP S/4HANA, and SNP has already completed more than 30 S/4 projects. In FY18, management is focused on driving organic growth. We have maintained our headline forecasts, although adjusted net debt rises due to higher-than-expected FY17 net debt. Given the favourable industry drivers and the potential for margin recovery, the shares look attractive on c 21x our FY19e earnings.
FY17 results: Organic revenue growth was 8%
FY17 revenue jumped by 52% to €122.3m, including 8% organic growth, with additional contributions from five acquisitions. The group reported a loss before tax of €1.8m, after a series of one-off costs. EBITDA was €3.3m, while on the company’s non-IFRS basis, adjusted EBITDA was €6.9m, down from €8.1m in FY16. The group finished the year with net debt of €26.8m, up by €35.1m.
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