Careium: A combination of highs and lows - ABG

Q4: flat organic growth but major FCF improvements
'24e sales and adj. EBITA estimates down by 3%
Trading at 7.8x '24e EV/EBITA adj.


Soft top line partly offset by lower opex

Careium delivered a soft top line with flattish organic growth, mainly on a decrease in UK sales of 15% lccy y-o-y. The UK government has postponed the close-down of analogue infrastructure, which had previously driven UK product demand for Careium, causing its UK product sales in Q4 to drop by 19% y-o-y and 30% q-o-q. However, cost reductions have proven successful, with opex decreasing by 14% q-o-q (mainly on lower admin costs), which supported adj. EBITA growth of 51% y-o-y, corresponding to an EBITA margin of 11%. For the full year, adj. EBITA improved from SEK 8m in FY'22 to SEK 77m in FY'23, driven by efficiencies and 11% org. top-line growth.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/careium/Equity-research/2024/2/careium---a-combination-of-highs-and-lows/