Prodware: Solid Foundations For Growth
Edison | May 26, 2016 03:38AM ET
The Q1 revenues release shows that with revenues of €42.5m in Q1 Prodware (PA:ALPRO) continues to make solid progress (+2.6% Q1 on Q1 underlying growth) and that there are also signs of a turnaround in the Benelux and all important German markets. The €79m debt restructuring post year-end leaves Prodware well financed to achieve its ambitious medium-term growth objectives. The shares, however, continue to trade on substantial and undeserved multiple discounts to comparators.
Trading solid and encouraging signs
Q1 revenues of €42.5m show that Prodware remains on course, with underlying top-line growth of 2.5% Q1 on Q1. In Q1 the geographical sales mix shift towards the Francophone zone seen in FY15 was reversed, with strong performances in Spain and Israel. There were also signs of turnarounds in Germany and Benelux, confirming our view that the restructuring is complete and the foundations of growth across all geographies are in place. We are adjusting our forecasts slightly following this announcement and the release of the full FY15 report and accounts in April. Our revenue and earnings forecasts are not substantially changed and certainly not by enough to alter our view that Prodware’s shares are undervalued. Our debt figures are significantly changed (up by €12m FY16e) following the one-off heavy investment in new product development in FY15. Details of the changes are shown overleaf.
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Prodware - Solid Foundations For Growth
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