Solwers (SOLWERS) Q2 2024 earnings summary

Executive summary

• Revenue grew 20.2% year-over-year in H1 2024 to €39.9 million, mainly driven by acquisitions, with organic growth at about 1%.

• Profitability declined due to one-off costs, higher contingent consideration, and Main List preparations; EBITA was €3.3 million (8.2% margin), EBIT €2.0 million (4.9% margin).

• Net profit fell to €0.75 million from €1.5 million year-over-year; EPS at €0.07.

• Headcount increased to 690 from 611, reflecting ongoing expansion.

• Growth strategy focused on acquisitions, with three completed in H1 and further deals after the review period.

Financial highlights

• H1 2024 revenue: €39.9 million (H1 2023: €31.1 million), up 20.2%.

• H1 EBITDA: €3.8 million (9.4% margin), down from €4.0 million (12.1%) in H1 2023.

• H1 EBIT: €2.0 million (4.9% margin), down from €2.5 million (7.5%) in H1 2023.

• Net result: €0.75 million, down from €1.5 million in H1 2023; EPS at €0.07.

• Turnover per employee increased to €57,000 (H1 2023: €55,000).

Outlook and guidance

• Market recovery and investment activity delayed due to persistent high interest rates and inflation.

• Business climate expected to improve towards end of 2024; outlook for 2024 remains unchanged.

• Midterm targets unchanged: revenue growth >20% per year, EBITDA margin target 12%, equity ratio >40%.

• Focus on sales growth, profit improvement, and targeted M&A in high-demand sectors like energy and infrastructure.