Clavister: Growth acceleration on the cards for H2 - ABG

Q2 sales were in line, EBITDA 11% better
Continues to scale well; sales +17%, opex +3% y-o-y
Trading at 2.8x-2.0x EV/sales, 18-7x EV/EBITDA '24e-'26e


Solid performance despite a few headwinds

Clavister delivered a solid Q2 with sales in line with our estimates and profitability slightly better (SEK 5.2m EBITDA, +11% vs. ABGSCe SEK 4.7m) mainly as a result of lower costs. Organic growth continued to be strong at 23% while order intake increased 13% y-o-y despite a tough reference period. ARR increased 11% y-o-y to SEK 125m, indicating continued solid growth in the underlying business, although it was a slight deceleration compared to recent quarters. Management highlighted that it was disappointed with the growth in Q2, saying that a few contracts were postponed to the second half of the year. As such, we see potential for the growth to accelerate in H2. For example, telecom revenue declined y-o-y in Q2, but should see a significant boost in H2 if Clavister closes the ongoing 5G contract worth SEK 20-40m. Meanwhile, we expect the rest of the core business to continue growing >20% in H2. Operating cash flow improved to SEK 4m in Q2, bringing LTM to SEK 16m, and with the current momentum we continue to see good prospects for positive FCF from H2'25 (FCF was SEK -7m in Q2).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/clavister/Equity-research/2024/8/clavister---growth-acceleration-on-the-cards-for-h2/