Breaking News, Research 26 Feb 2024
BREAKING NEWS – 26.02.2024
In a press release of February 21st, 2024, Vimi Fasteners SpA, a Company at the head of the homonymous VIMI Group, a leader in the design and production of high engineering fasteners for the industrial, automotive, oil&gas, aerospace and other sectors, listed on the multilateral trading system Euronext Growth Milan, reported that the Board of Directors has announced its consolidated preliminary results for the 2023 fiscal year. The fiscal year closed with total consolidated revenues of € 61.30 million, marking a growth of about 15.0% over the 2022 figure (€ 53.35 million) and standing in line with the values estimated in our previous report. This increase in revenues was undoubtedly driven both by the record order backlog registered at the end of the 2022 fiscal year, which is valid for 2023 and by the acquisition of Filostamp Srl, a company that joined the Group in April, which generated, during the consolidation period, revenues of € 6.20 million. In terms of marginality, an EBITDA adjusted of € 8.20 million is observed (net of non-recurring costs related, for the most part, to the acquisition of Filostamp Srl), up from the FY22A figure of € 6.08 million. Net of adjustment, the Group reports EBITDA of € 7.70 million, corresponding to an EBITDA margin of approximately 12.5 %. Compared to the figure reported for the previous year, there was a significant margin improvement, mainly due to increased revenues, continuous improvement in production efficiency, and price renegotiation strategies. This success was achieved through prudent management, despite the challenges arising from the global economic slowdown in the second half of the year, which negatively affected the Parent Company’s sales volumes in the final months of the year. As of December 31st, 2023, the Group reported NFP of € 23.90 million, an improvement over the half-year figure (€ 26.59 million), which included the acquisition of Filostamp Srl. Compared to the FY22A figure of € 14.09 million, the figure is affected by the costs incurred for the acquisition and also by the inclusion in the consolidated financial statements of an additional € 2.10 million in payables related to rents and leases recorded under IFRS 16. Finally, there is also a further increase in the order backlog, which as of December 31st, 2023, amounted to € 39.20 million (€ 37.70 million as of 31/12/2022) for the entire 2024 fiscal year. The excellent preliminary results suggest that Vimi Fasteners is progressing positively in the implementation of its growth plan and the integration of the newly acquired Filostamp and reinforce our positive view on the Group. While waiting to meet with management and evaluate the 2023 fiscal year results, we confirm our recommendation: target price € 2.75, BUY rating and risk Medium. |