Administer (ADMIN) Q2 2024 earnings summary

Executive summary

• EBITDA increased by 131% year-over-year to €3.6 million, reflecting a significant turnaround in profitability due to a successful profitability programme and revised strategy focused on profitable growth and operational efficiency.

• Net sales for H1 2024 decreased by 2.2% year-over-year to €38.4 million, mainly impacted by economic cycles and staffing fluctuations.

• Operating profit turned positive at €0.6 million from a loss of €-1.3 million, despite continued goodwill amortization from acquisitions.

• Small acquisitions were completed in accounting and property/housing management, and an agreement was signed to acquire a majority stake in Kuntalaskenta Oy, expected to close in September 2024.

• A one-time positive financial impact of €0.5 million was recognized from a capital loan repayment agreement related to Adner, which will be merged into the parent company.

Financial highlights

• H1 2024 revenue was €38.4 million, down 2.2% year-over-year; Q2 revenue was €19.3 million, down 1.3% year-over-year.

• H1 EBITDA was €3.6 million (9.4% margin), up from €1.6 million (4.0%) a year ago; Q2 EBITDA was €1.9 million (9.6% margin), up from €0.4 million (2.3%).

• Adjusted operating profit (EBITA) rose to €2.6 million (6.9% margin), up from €0.7 million (1.8%).

• EPS for H1 was €0.04, up from €-0.13 year-over-year.

• Cash flow from operations was €1.4 million (2.3), with cash and cash equivalents at €2.8 million at period end.

Outlook and guidance

• 2024 revenue guidance: €76–81 million; EBITDA margin guidance: 6–9%.

• Long-term targets: €100 million revenue and 15% EBITDA margin by 2026; dividend policy aims to distribute at least 30% of adjusted profit annually.

• The company aims to continue both organic and inorganic growth, focusing on profitable expansion in Finland and the Baltic Sea region.