REG - Eurowag - Trading Update

WAG Payment SolutionsAnnouncement

19/01/2023 07:00

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RNS Number : 1941N  Eurowag  19 January 2023

19 January
2023

 

EUROWAG

 

Trading Update

 

Continued positive trading momentum; net revenue growth for the full year
in-line with medium term guidance

 

W.A.G payment solutions plc ("Eurowag", or the "Group") a leading pan-European
integrated payments & mobility platform focused on the Commercial Road
Transportation ("CRT") industry, today announces an unaudited trading update
for the 12 months period ending 31 December 2022.

 

Financial highlights(1)

 

·      Net revenue for the full year is expected to be at least €189m
(FY 2021: €153m). This represents a year-on-year growth rate of
approximately 24%, demonstrating the resilience of our business model and the
importance of our mission critical solutions to the CRT industry, despite the
challenging macroeconomic environment.

 

·      Organic net revenue, excluding the acquisition of Webeye, is
expected to be at least €181m, representing year-on-year growth of
approximately 18%, in-line with medium term guidance.

 

                     Net revenue          Year-on-year growth (%)  Organic revenue²   Organic

(€m)
(€m)
year-on-year growth (%)
                     Unaudited  Audited                            Unaudited

FY 2022
FY 2021
FY 2022
 Payment solutions   134        113       19                       133                18
 Mobility solutions  55         40        38                       48                 20
 Total               189        153       24                       181                18

 

Operational highlights(1)

 

·      The Group's solid financial performance was underpinned by strong
operational performance. At the end of FY 2022:

 

-       The average number of payment solutions active customers rose
year-on-year by 13% to 16,900 (FY 2021: 15,020);

-       The average number of payment solutions active trucks rose 7% to
88,100 (2021: 82,640).

 

Notes:

1.     Please note the numbers are unaudited and are therefore
preliminary. Final 2022 audited results for the Group are expected to be
published on 16 March 2023.

2.     Organic revenue excludes net revenues from our Webeye acquisition.

 

 

Strategic highlights

 

Update on the proposed acquisition of Inelo

In October 2022, the Group reached an agreement for W.A.G. payment solutions
a.s., a wholly-owned subsidiary of Eurowag, to acquire 100% of the share
capital of Inelo for up to €306 million (subject to certain closing
adjustments). Inelo is a leading fleet management solutions provider with
mission critical Working Time Management software in Poland, the largest CRT
market in Europe, with critical mass in Slovenia, Croatia and Serbia. Along
with a larger geographic footprint, the proposed acquisition would also
roughly double Eurowag's number of connected trucks, adding approximately
87,000(3) connected trucks to Eurowag's platform.

 

Following the announcement, the Company has subsequently received foreign
direct investment regulatory and antitrust approval from the relevant
authorities in Poland, North Macedonia and Slovenia. The shareholder circular
and Notice of General Meeting is expected to be sent to shareholders in early
2023, following the approval of the FCA, with completion expected in Q1 2023.

 

Updated agreement with Sygic a.s.

In December 2022, the Group entered into an agreement to acquire the remaining
30% equity interest in Sygic a. s. ("Sygic") for a total consideration of
€14.4 million. The consideration and ownership of the 30% equity interest is
to be payable and transferred in April 2024, in line with the original option
agreement. Having full control of Sygic's resources will allow the Group to
fully utilise Sygic's digital expertise and people capabilities, which will
enable us to accelerate our digital sales channel and integrated product
initiatives.

 

Outlook

 

Looking ahead, there continues to be elevated risks and uncertainty with
respect to the future of the European economy. That being said, as a result of
Eurowag's compelling strategy and resilient business model, the Board
continues to expect over the medium-term to deliver annual organic net revenue
growth of between high-teens and low-twenties percent. Following the
completion of the proposed Inelo acquisition the change in revenue mix may
impact the pace of adjusted EBITDA margin trending from mid-forties into the
high-forties over the medium-term. However, the revenue contribution from the
mobility solutions segment is expected to increase substantially,
strengthening the Group's subscription-based revenues.

 

Martin Vohánka, CEO and Founder said:

 

"I am pleased to announce that we have ended the year with another strong
quarter, maintaining the positive momentum we saw in the first nine months of
the year. This performance once again demonstrates the resilience of our
business model, as well as the mission critical nature of the solutions we
provide to the CRT industry across Europe. Whilst it's been a challenging year
with the war in Ukraine and supply chain disruptions, I would like to thank
all our colleagues for their hard work for helping our customers stay on the
road throughout 2022.

 

We made excellent progress towards achieving our strategic ambitions in 2022,
which focus on both organic and inorganic growth. In the year, we expanded our
customer base, customer solutions and geographic presence with the new
strategic partnership with JITpay, the acquisition of WebEye and the proposed
acquisition of Inelo. Together with the progress we made in developing our own
digital capabilities, takes us one step closer to achieving our vision of
creating a fully integrated digital end-to-end platform for our customers.
Despite the challenging macroeconomic conditions, it is clear that our
platform has the potential to transform the CRT industry for the better, and
so we enter 2023 with confidence."

 

3 Inelo connected trucks represent the number of medium and heavy commercial
vehicles over 3.5 tonnes that have an Inelo on-board unit installed within the
vehicle.

 

 

ENQUIRIES

Eurowag

Carla Bloom

Head of Investor Relations and Communications

+44 (0) 789 109 4542

investors@eurowag.com (mailto:investors@eurowag.com)

 

Instinctif Partners

Tim McCall, Galyna Kulachek, Bryn Woodward

IR and international media

+44 (0)20 7457 2020

eurowag@instinctif.com (mailto:eurowag@instinctif.com)

 

About Eurowag

Eurowag was founded in 1995 and is a leading pan-European integrated payments
& mobility platform focused on the Commercial Road Transportation ("CRT")
industry. Eurowag's innovative solutions makes life simpler for small and
medium businesses in the CRT industry across Europe through its unique
combination of payments solutions, seamless technology, a data-driven digital
ecosystem and high-quality customer service. https://investors.eurowag.com
(https://investors.eurowag.com)

 

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