Dublin, Ireland, 26 April 2021 – on the 23rd of April 2021, SEB published the following report following the release of fiscal Q3.
Zutec reported net sales of SEK 8.5m for the quarter, corresponding to growth of 63% y/y (70% FX-adjusted). Despite last year being something of an easy comparison, the sequential decline was only 8% despite normally low seasonality in the early calendar year. Zutec reported an FX-adjusted EBITDA of 0.7m (corresponding to a margin of 7.9%) where we estimated below breakeven. In conjunction with the report, Zutec announced a target to reach SEK 200m in sales within three years, including both organic and inorganic growth.
Createmaster, acquired on 19 April, adds 130% to pro forma Zutec sales (for figures January – December 2020). With a complementary offering within post-construction and handover management, Createmaster is a strategic fit enabling cross-selling and a wider reach for the joint forces. We find the low multiples paid (1.2x sales, 11x EBITDA for 2020) appealing, given the fact that Zutec has traded at around 5-6x trailing sales for the past months.
We have revised our estimates and included Createmaster in the numbers, where we see scope for Zutec reaching a respectable EBITDA margin of 7% in 2021/22 despite growth being the primary focus ahead. We have raised our fair value range to SEK 9-12 per share with a mid-point of SEK 10.5.
The report can be obtained at the following link https://research.sebgroup.com/corporate/reports/107957
Gustave Geisendorf, Chief Executive Officer
Telephone: +353 1 201 3565
Zutec is a provider of cloud-based construction management software with operations in Dublin, Abu Dhabi, London and Melbourne.
Zutec Holding AB (publ) is listed on Nasdaq First North Growth Market and Redeye AB is the Company’s acting Certified Adviser (Tel. +46 8 121 576 90, firstname.lastname@example.org www.redeye.se).