StrongPoint - 34% y-o-y growth in Retail Technology
Revenues 8% above ABGSC, EBITDA 5% above Reiterates ‘25 targets, e-com to be the key growth driver We see expect cons. to lift sales estimates by 2-3% EBITDA 5% above, 34% y-o-y growth in retail technology Revenues (excl. the compensation from BaneNor) was NOK 338m, 8% above ABGSC at NOK 313m. The core retail technology segment delivered strong revenues of NOK 292m, which was 6% above ABGSC at NOK 275m.
This corresponds to a growth of 34% y-o-y and is driven by the large delivery of ESL’s to Norgesgruppen as well as good momentum in StrongPoint’s e-commerce business. EBITDA (excl. one-offs) was NOK 28m, 5% above ABGSC at NOK 27m.
There are two large one-off gains in the report, a NOK 55. 7m compensation from BaneNor and a gain of NOK 39. 2m related to the divestment of the cash security business.
This is also the first quarter that StrongPoint does not include its Cash Security business in its EBITDA/EBIT, but this is now included in discontinued operations. The board proposes a dividend of NOK 0. 70/share (NOK 0.
60 last year). Strategic update session to focus on e-commerce StrongPoint will also host a strategic update session today. Here it reiterates its 2025 targets (NOK 2.
5bn in revenues and 13-15% EBITDA margin) as we had expected. But now they say that NOK 550m of the growth will come from e-commerce, compared to NOK 400m last year. Hence, the focus of the session will be on StrongPoint’s e-commerce solutions.
We think that the market will appreciate to get a better insight into the quality and the strong growth potential of its e-com solutions. We expect small positive change to cons. estimates StrongPoint delivers a strong quarter with high growth in its core retail technology segment.
We expect to revise up revenues estimates by 2-3% following today’s report. In addition, we think that the strategic update session will highlight the strong growth potential that StrongPoint has in e-commerse. The stock has been very strong into numbers (+65% in the.
