DHH is a publicly-traded technology group with shares listed on AIM Italia, a Multilateral Trading Facility regulated by Borsa Italiana and registered as a SME Growth Market.
DHH’s objective is to provide above average long-term capital appreciation for shareholders by growing both organically and through acquisitions in two primary business segments: Cloud computing and Web hosting in the emerging digital economies. Through ownership of DHH stock, investors are getting exposure to one of the most attractive growth markets today. To achieve this objective DHH is continuously investing in organic growth and at the same time proactively sourcing buy and hold investment opportunities with the best potential to create long-term shareholder value for its public market investors.
DHH creates value executing a sound M&A strategy, which aims at substantially increasing the intrinsic value of acquired companies in the very short term after the completion of the deal.
This strategy is based on the following pillars:
1) proposing a fair valuation for the acquisition, not over-paying the companies;
2) structuring a deal where the entrepreneurs have strong incentives to stay in the company after the acquisition with the goal of growing the main business KPIs: revenue, EBITDA, net profit, free cash flow;
3) cleaning-up the companies from the costs not connected to the core business, which are a constant in the world of SMEs;
4) implementing a control management system in companies, so to improve the budgeting and planning process, which is usually non-existent in the SMEs;
5) representing companies’ financials in the best possible way, communicating the meaning behind the numbers.
Thanks to this approach, in the last 3 years DHH invested 6M EUR in M&A deals and the portfolio companies are now worth more than 10M EUR.
DHH: HISTORICAL ACQUISITION TRANSACTIONS AND VALUE CREATION
|DEAL DATE||COMPANY||COUNTRY||TRANSACTION VALUE (€'000)||KEY FINANCIALS (€'000)||IMPLIED MULTIPLE|
|Nov-15||Plus Hosting||Croatia / Serbia||1,351.9||1,000.0||202.0||1.4x||6.7x|
|Jun-17||Bee Web||Switzerland / Italy||593.0||1,000.0||n.a.||0.6x||n.a.|
|Oct-18||mCloud||Serbia||ca. 315||ca. 350||n.a.||0.9x||n.a.|
|Total cash out for acquisitions||6,063 (*)||o/w goodwill ca. 5,751 (*)|
|DCF based Enterprise Value||10,354|
|Value creation in three years||4,291|
Source: Value Track Analysis
(*) Post mCloud acquisition (hp. 100% stake)
Information for Shareholders
ISIN Codes 1: IT0005203622 (ordinary shares)
ISIN Codes 2: IT0005203663 (ordinary shares with bonus shares)
ISIN Codes 3: IT0005203689 (warrants)
Market: AIM Italia/MAC
SDIR: eMarket SDIR managed by Spafid Connect S.p.A.
Nomad: Advance SIM S.p.A.
Specialist: CFO SIM S.p.A.
Auditor: BDO Italia S.p.A.
– Double-digit growth on all the main financial KPIs (net sales, EBITDA, net profit)
– Cashflow before NWC changes up 31%
– Continuing growth in sales across all subsidiaries
– Improved EBITDA margin, as operating expenses scale with revenue
– Strong net cash position and almost zero debt
– Robust cash conversion – OCF/EBITDA = 100%
|CONSOLIDATED INCOME STATEMENT||CONSOLIDATED||CONSOLIDATED||DELTA|
|(ALL AMOUNTS ARE IN EURO)||30.06.2018||30.06.2017|
|EARNINGS BEFORE TAXES||140.405||118.133||19%|
|NET FINANCIAL POSITION||(2.684.347)||(2.278.126)|
|CONSOLIDATED PRO-FORMA INCOME STATEMENT||PRO-FORMA*||CONSOLIDATED||DELTA|
|(ALL AMOUNTS ARE IN EURO)||30.06.2018||30.06.2018|
|OPERATING INCOME – EBITDA||505.193||277.531||82%|
|EARNINGS BEFORE TAXES||371.366||140.405||164%|
|NET INCOME (LOSS) FOR THE YEAR||295.767||102.806||188%|
* The consolidated pro forma is not audited by the audit firm but it has been checked only the mathematics accuracy.
|NUMBER OF SHARES||% SOCIAL CAPITAL|
|Seeweb Holding S.r.l.*||360.000||25,352%|
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