| At the end of the first half of 2024, the Group recorded revenues of € 11.09 million, an increase of 7.5% compared to 1H23A, where revenues amounted to € 10.32 million. EBITDA stood at € 2.02 million, showing a sharp increase (+46.3%) compared to € 1.38 million in 1H23A. Similarly, the EBITDA margin improved from 13.4% in 1H23A to 18.3% in the current period. EBIT as of June 30, 2024, was positive at € 0.91 million, showing a significant increase compared to the 1H23A result of € 0.21 million. Net Income for 1H24A also grew, reaching € 0.41 million, compared to a negative result of € -0.10 million in 1H23A. The NFP for the period under review stood at € 4.51 million, compared to € 3.56 million in FY23A. In light of the results published in the half-year report for 1H24A, we are revising our estimates for both the current year and the upcoming years. Specifically, we estimate FY24E sales revenue to be € 22.40 million, with an EBITDA of € 4.00 million, corresponding to a margin of 17.9%. For the following years, we expect sales revenue to increase to € 28.10 million (CAGR 23A-26E: 12.4%) by FY26E, with an EBITDA of € 7.00 million (corresponding to a margin of 24.9%). On the balance sheet side, we estimate a cash-positive NFP of € 2.31 million for FY26E. We conducted our valuation of the equity value of Websolute based on the DCF method and multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 50.8 million. Using market multiples, the equity value of Websolute was calculated to be € 35.2 million. The result gives an average equity value of approximately € 43.0 million. The target price is € 4.20, with a BUY rating and MEDIUM risk. |