At the close of the financial year FY23A, the value of production amounted to € 10.52 million, slightly down (-0.6%) on the result recorded for the previous year, equal to € 10.58 million. EBITDA came in at € 2.13 million, marking an increase of 56.7% compared to € 1.36 million in the previous period. Consequently, the EBITDA margin (calculated on the value of production) came in at a value of 20.3%, a strong improvement compared to 12.9% in FY22A. Adjusted EBITDA amounted to € 1.45 million, showing a clear improvement on the FY22A figure of € 0.66 million. The Adjusted EBITDA margin was 13.8%. EBIT was € 0.48 million, compared to the FY22A figure amounting to € 0.30 million. Net Income was € 0.13 million, compared to the € 0.28 million recorded at the end of the previous financial year. The NFP is € 2.71 million, an improvement on the FY22A figure of € 3.02 million.
In light of the results published in the annual report for FY23A, we have slightly adjusted our estimates for both the current year and the following years. In particular, we estimate a value of production for FY24E equal to € 18.10 million, and an Adjusted EBITDA equal to € 3.15 million, corresponding to a margin of 17.4%. In the following years, we expect the value of production to reach € 27.20 million (CAGR 23A-26E: 37.3%) in FY26E, with Adjusted EBITDA equal to € 5.45 million (corresponding to a margin of 20.0%), up from € 1.45 million in FY23A (corresponding to an Adjusted EBITDA margin of 13.8%).
We conducted our valuation of the equity value of iVision Tech 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 € 21.7 million. Using market multiples, the equity value of iVision Tech was calculated to be € 24.2 million (including a 25% discount). The results give an average equity value of € 22.9 million. The target price is € 3.30, with a BUY rating and MEDIUM risk.