Drive for growth
Prodware (PA:ALPRO) is well positioned both to grow revenues and to drive sales of its higher-margin software, rather than its integration services. The integration and restructuring of the Qurius acquisition is now complete and the balance sheet has been restructured. Furthermore, management is once again focusing on growth, as evidenced by the stated intent to grow revenues to €300m by 2020, the Prodware Academy programme, the creation of the Business Consulting division and the open desire to make acquisitions. Despite this potential, the shares trade at significant sales and earnings multiple discounts relative to European comparators.
Positioned for growth
The integration and restructuring of the Qurius operations across Europe is now complete and the process of driving up the software revenues in these businesses is fully underway – hopefully following the same path towards higher margins as management achieved with the original Prodware business. The balance sheet is in better shape as a base for the management to grow overall revenues driven by investment in new staff with the Prodware Academy programme, the creation of the Business Consulting division and potentially, bolt-on acquisitions.
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