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Analyytikon kommentti

Wirtek: Financial results FY2024 as expected despite reduced dividends to preserve cash for acquisitions

– Philip CoombesEquity Research Analyst
Wirtek

This morning, Wirtek published its full annual report FY 2024, showing revenue of DKK 71.9 million (+2% y/y), which had been previously announced to the market, and is a little below its latest 2024 guidance of DKK 72.5-73.5 million. The revenue growth was supported driven by Wirtek’s two energy-focused acquisitions in 2024 of Pragmasoft and Seluxit, with 84% y/y growth in its energy segment, and some decline in its other segments amid challenging markets.

Wirtek’s EBITDA was DKK 5.2 million FY2024, also previously announced, was at the lower end of its latest DKK 5-6 million guidance, reflecting a 7.3% margin, a slight step down from the 8.9% realized in 2023. However, when adjusting for acquisition costs the FY2024 adj. EBITDA margin rose to 8.7%, roughly in line with 2023.

Looking ahead to 2025, Wirtek expects revenue between DKK 70-75 million (-3% to +4% growth) as market conditions remain challenging amid geopolitical uncertainties that lead to delayed investment decisions. Wirtek expects a lower EBITDA in 2025 in the range of DKK 1.0-5.0 million, somewhat due to short-term elevated investment spending, with the goal of “returning to double-digit organic growth in 2026”. The guidance had also been announced previously.

Due to Wirtek’s plans to support organic growth with acquisitions its dividends announced in connection with the FY2024 report are reduced to DKK 0.23 per share, from DKK 0.38 per share in connection with FY2023, to preserve cash to support investments and acquisitions. The dividend reflects a 3.2% dividend yield from yesterday’s closing prices. Wirtek also announced that additional cash has been earmarked for possible share buy-back programs in 2025 and remains focused on supporting organic growth with acquisitions, which a solid balance sheet with a low gearing ratio of 0.65x (NIBD/EBITDA) can support.

Wirtek CEO Michael Aaen will host an event presenting the annual results at 1:00 PM later today. Register and ask questions here: https://www.inderes.dk/videos/wirtek-presentation-of-full-year-2024-results

Disclaimer: HC Andersen Capital receives payment from Wirtek for a DigitalIR / corporate visibility subscription agreement. / Philip Coombes 09:19

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WirTek is an IT company. The company is focused on developing software and hardware solutions that affect web, mobile and integrated complete systems. Operations are held on a global level, with the largest presence in the Nordic region and Europe, where customers mainly consist of small and medium-sized business customers. WirTek was founded in 2001 and is headquartered in Aalborg.

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