Addnode Group: Slightly below expectations

Addnode’s sales came in at SEK 587. 5m, which was better than our expected SEK 554m. On the negative side, Q2 showed EBITA of SEK 32. 8m compared to our expected SEK 43.

5m. However, EBITA was negatively affected by restructuring costs of approximately SEK 5m within Process Management and also by recruitment, for further growth, within PLM. The acquisition activity within Process Management continues with a high pace.

During Q2, Addnode acquired two companies. Moreover, Addnode has extended their acquisition credit facility by SEK350m, which we see as positive according to their growth strategy. Our fair value remains intact, meaning that Base case yields a motivated value of 78 SEK per share.

Moreover, we still estimate a fair value range between a Bear case of 48 SEK and a Bull case of 97 SEK per share.