Seafire: Impressive organic growth of 23% - ABG

Sales and adj. EBITA 20% and 12% vs. ABGSCe

Organic growth of 23% vs. ABGSCe 16%

Current BS allows for additional M&A

Q2 results
All in all, Seafire delivered a strong Q2. Sales were 283m (20% vs. ABGSCe 236m), up 170% y-o-y whereof 23% organically (ABGSCe 16%). Management says the strong organic growth was mainly drive by increased volumes but supported by price increases. Adj. EBITA was SEK 35.4m (12% vs. ABGSCe 31.7m), corresponding to an adj. EBITA margin of 12.5% (11.3%) vs. ABGSCe 13.4%. The Industry segment showed solid development, beating our expectations whereas the Retail & Services segment was slighly soft on the margin. OCF at SEK -29m (20m) was negatively impacted by NWC build up.

Estimate changes and outlook
Adj. EBITA estimates comes up 4% on isolated numbers. Management says Q3 has started good with and highlights that current balance sheet allows for additional acquisitions.
Final thoughts The share is down 23% YTD (vs. OMXSPI -24%) with its f12m EV/EBITA multiple contracting from 13.0x (Dec ’21) to 8.9x.
Läs mer på ABG Sundal Collier

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Seafire/Equity-research/2022/8/seafire---impressive-organic-growth-of-23/