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Original-Research: Vectron Systems AG - von GBC AG

Einstufung von GBC AG zu Vectron Systems AG

Unternehmen: Vectron Systems AG
ISIN: DE000A0KEXC7

Anlass der Studie: GBC Management Interview
Empfehlung: GBC Management Interview
Letzte Ratingänderung:
Analyst: Cosmin Filker, Matthias Greiffenberger

acardo acquisition and digitisation strategy have positive influence; risk
from purchase price payment practically non-existent
 
After the fiscalisation effect has largely expired, Vectron Systems AG is
currently in a transformation process. Their focus is on the expansion of
digital services, so that in future the predominant part of Vectron's
business will consist of recurring revenues. One-off revenues from cash
sales are taking a back seat. The increase in recurring income by around
48% to EUR 9.6 million is a clear indication of the success of this strategy.
At the same time, the current financial year is significantly influenced by
the inorganic effects of the acquired couponing specialist acardo Group AG.
GBC analyst Cosmin Filker spoke with Vectron board member Thomas Stümmler:
 
GBC AG: At the beginning of the current financial year 2023, you acquired
the couponing specialist acardo Group AG. What interim conclusion can you
draw about this acquisition after three quarters?
 
Thomas Stümmler: We are still very happy to have acquired such an exciting
company. acardo serves around half of the German coupon market within the
food retail sector. Furthermore, acardo operates two popular apps in this
field, Couponplatz and Scondoo. In addition, acardo operates or supports
the apps of large retail chains, such as Edeka, with content. acardo
software runs on the cash register systems of many large retail companies.
This fits in perfectly with Vectron's strategy. With acardo we also seek to
spread couponing throughout the gastronomy sector and make ourselves more
independent of individual industry trends.
 
GBC AG: What are the possibilities of a stronger cooperation between the
two segments 'POS systems' and 'couponing'?
 
Thomas Stümmler: We think that couponing will also play a big role in the
gastronomy sector. We also want to give restaurant owners the opportunity
to market special offers via acardo's end-customer apps. Furthermore, we
want to give the supply industry the opportunity to advertise beverages,
for example, not only in trade with coupons, but also in the field of
gastronomy. For this, we want to convince our massive customer base of the
advantages of couponing, while acardo can market this new marketing
platform through its existing contacts to the industry.
 
GBC AG: In the first three quarters of 2023, you generated strong revenue
growth of almost 50% to EUR 27.9m (PY: EUR 18.3m). EBITDA climbed significantly
to EUR 2.8 million (previous year: EUR -2.6 million). What were the most
important drivers behind this?
 
Thomas Stümmler: In addition to the acquisition of acardo and the
associated positive results, a pleasing increase in recurring revenues was
primarily responsible for the improvement in the group result. We have
really only scratched the surface of the potential of these digital
services.
 
GBC AG: You've mentioned the strong increase in recurring revenues which
are primarily related to the expansion of the digital business. Which
modules are to be introduced to the market in the near future?
 
Thomas Stümmler: To give you a few examples:
* A web shop for 'take away' with a connection to the cash register.
* Ordering by QR code and paying at the table
* Online table reservation
* Couponing for gastronomy
* ...etc...
 
GBC AG: EBITDA in the first nine months was positively affected by special
effects totalling EUR 0.9 million. What are these related to and what will
its further development be?
 
Thomas Stümmler: These were mainly one-off effects from provisions that
could be released. This will, therefore, not continue.
 
GBC: Are the 'aftermaths' of the implemented cost-saving programme now over
and which cost savings could Vectron finally realise?
 
Thomas Stümmler: We have reduced our staff from about 200 employees to
about 150. This means considerable monthly savings, which, however, have
only occurred slowly this year, because many long-serving employees had
long notice periods. As you know, we have decided to source hardware from
external partners in the future. Therefore, we have cut most of the jobs in
hardware manufacturing and development and have not made any cuts in
software development, for example. Our digital growth strategy was thus not
affected by the savings.
 
GBC AG: Back to the acardo acquisition. Depending on acardo's earnings
performance, an earn-out in a wide range of EUR 4 to EUR 25 million will be due
in the 2026 financial year. What result would acardo have to achieve for
the maximum earn-out to be due? How should this be financed?
 
Thomas Stümmler: For this, acardo would have to generate an average EBIT of
EUR 5.5 million in the financial years 2024 and 2025. If this is missed by a
significant margin, the earn-out could be as low as EUR 4 million. Regardless
of how high the earn-out ultimately turns out to be, we can pay a
significant part of the claim from the accrued acardo profits and finance
the rest, which should then be possible with such a profitable subsidiary.
So, actually, every scenario has its appeal. You should not forget that we
can use the profits from the current year and partly from 2026, because we
expect to have to pay first in Q2 2026. Before that, all the financial
statements have to be available.
 
GBC AG: A follow-up question on this. What happens if you do not have
sufficient liquid funds at the time of the earn-out payment? What risks do
you face?
 
Thomas Stümmler: We have tried to structure the deal in such a way that all
conceivable scenarios remain manageable. That's why we agreed that in this
case that we would NOT have to pay, but that the ex-owners of acardo could
then buy the company back at the purchase price at the time. The
accumulated profits would remain with us. Should the ex-owners then also
not be able or willing to pay this, the company would remain with us until
one of the two parties finally buys it.
 
GBC AG: Mr. Stümmler, finally a question for investors with a long-term
investment horizon. Where do you see Vectron in five years?
 
Thomas Stümmler: We seek to become the leading provider of a complete
digital ecosystem for retail and gastronomy. Digital services can multiply
the turnover per customer. If we consistently and patiently continue along
the path we have now embarked on, then the largest cash register base in
the market should automatically make us the largest digital provider. The
growth of these digital products is already clearly visible today and shows
that the strategy is working.
 
GBC AG: Mr Stümmler, thank you for the interview.
 

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/27993.pdf

Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date (time) completion (german): 31.10.2023 (08:29 am)
Date (time) first transmission (german): 31.10.2023 (10:00 am)
Date (time) completion (english): 31.10.2023 (3:30 pm)
Date (time) first transmission (english): 02.11.2023 (10:00 am)

-------------------übermittelt durch die EQS Group AG.-------------------

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