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Eksterne analyser

Proact. Somewhat more restructuring than expected - ABG

Proact IT Group

Dette er en ekstern analyse og afspejler ikke nødvendigvis vores perspektiv eller værdier.

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Q2 details
Sales SEK 1,172m (0% vs ABG 1,170m, no cons). Adj. EBITA 76m (6% vs ABG 71m), Adj. EBITA margin 6.5% (ABG 6.1%). Organic growth -7% (vs ABG -5%), of which system sales -9% (ABG -6%) and services -5% (ABG -4%). Adj. EBITA -21% y-o-y (ABG -26%) on a tough comp and a weaker market.

Somewhat more restructuring charges
Proact initiates a cost reduction program in West and Central (Netherlands and Germany primarily) to adress a weak delivery and too low utilisation, to narrow the focus in the market to business critical services and core offering. Nordics and UK develop well. OCF at SEK 127m (130m in Q2’24) is Ok given the earnings decline y-o-y. Proact sees positive demand across Nordics & UK despite macro, as customers need to digitalise, strengthen cybersecurity and increase the use of AI. Somewhat larger cost reductions than we expected (SEK 25m vs 5m).

Relatively small estimate changes
We expect to see relatively neutral estimate changes on adj. EBITA most likely, as the Q2 beat may be off set by somewhat lower sales estimates due to larger cost reductions, while reported earnings down ~5%. Share likely a bit soft today today. Conf call at CET 13.30.
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