Double digit growth rates in 1H19 and steadily positive cash generation

Double-digit business expansion, mainly due to the acceleration of Sysbee and mCloud – i.e. the internal start-up and the newly acquired company respectively – together with a significant market consolidation in Slovenia thanks to the increasing focus on high-end solutions

Steadily positive cash generation (cash conversion ratio ranging from 70% to 90%), coming from the combination of:

  • Favorable working capital dynamics, specific of a SaaS company, as the group benefits from getting paid spot and delivering its services at sequent stages;
  • Low capital expenditures need, highlighting the scalability of DHH business model;

Absence of any cost’s capitalization, meaning EBITDA fully reflects operating profitability;

Positive Net Cash position (ca. €3mn), allowing further M&A transactions.

Ramp up continues in 2019E-20E

(Source for estimates: Value Track equity research report, 24 September 2019)

2019E-20E Gross Sales expected to experience a double-digit growth: +17% and +12% respectively;

Operating profitability to progressively increase, with EBITDA margin expected at 12.8% and 15.0% respectively in 2019E-20E on a pro-forma basis (gross of non-recurring and extraordinary costs: listing and M&A related costs or indirect costs linked to the parent company)

Cash conversion rate expected in the 70%-90% region