REG - Eurowag - Trading Update

WAG Payment SolutionsAnnouncement

25/04/2023 07:00

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RNS Number : 2918X  Eurowag  25 April 2023

25 April 2023

 

EUROWAG

Trading Update

A strong first quarter, with the integration of Inelo underway

W.A.G payment solutions plc ("Eurowag", or the "Group") a leading pan-European
integrated payments and mobility platform focused on the Commercial Road
Transportation ("CRT") industry, today announces its trading update for the
three-month period ending 31 March 2023.

Martin Vohánka, CEO and Founder said:

"Eurowag has delivered a strong first quarter, maintaining the momentum we saw
at the start of 2023. These results further highlight the resilience of our
business model and the importance of our solutions to our customers. In-line
with our strategy, we continue to focus on growing our footprint and services
through organic and selective inorganic opportunities. With the completion of
Inelo we have expanded into important new geographies and brought leading
fleet management solutions and Working Time Management software into our
product suite.

We have a lot to do this year and our focus remains on integrating the
businesses we acquired over the last twelve months so we can capture the
expected revenue and cost synergies and deliver our vision of providing a
fully integrated end-to-end platform. We are also committed to reducing our
leverage to within the 1.5x-2.5x net debt to adjusted EBITDA guidance range in
the near term. Our platform continues to be enhanced through our
transformational capex programme, which is on track to finish at the end of
the year. All this alongside a strong first quarter, continues to give me
confidence in delivering the medium term-guidance."

Financial highlights

 

·      First quarter net revenue grew 30.7%, to €52.2(1) million,
which was supported by continued organic growth driven by our resilient
business model and our mission critical services and attractive contributions
from acquisitions.

·      First quarter organic net revenue grew 16.6% to €46.5 million,
in-line with management expectations.

·      If we had acquired Inelo at the start of the year, first quarter
net revenue contribution to the Group would have been €11.1 million.

·      Last twelve months organic net revenue grew 19.7% to €189.4
million.

 

                     Net revenue         Year-on-year  Organic revenue  Organic

                     (€m)                growth        (€m)²            year-on-year

                                         (%)                            growth

                                                                        (%)
                     Q1 2023¹   Q1 2022
 Payment solutions   35.9       30.1     19.4          35.4             17.8
 Mobility solutions  16.2       9.8      65.1          11.1             12.8
 Total               52.2       39.9     30.7          46.5             16.6

 

                     Net revenue                                             Year-on-year  Organic revenue  Organic

                     (€m)                                                    growth        (€m)²            year-on-year

                                                                             (%)                            growth

                                                                                                            (%)
                     12 months to 31 March 2023  12 months to 31 March 2022
 Payment solutions   140.7                       116.6                       20.7          139.2            19.3
 Mobility solutions  62.4                        41.7                        49.7          50.3             20.5
 Total               203.1                       158.3                       28.3          189.4            19.7

Notes:     1. Net revenues include 15 days contribution from Inelo
following the completion of the acquisition.

2. Organic revenues exclude the contribution from Webeye and Inelo.

 

Operational highlights

 

·      Revenue growth continues to be supported by strong non-financial
KPI performance:

o  The average number of payment solutions active customers rose from 16,221
in Q1 2022 to 17,843 in Q1 2023, representing 10.0% year on year growth.

o  The average number of payment solutions active trucks rose from 87,085 in
Q1 2022 to 91,288 in Q1 2023, representing 4.8% year on year growth.

 

Strategic highlights

 

Completion of Inelo

On the 15(th) of March, following receipt of Eurowag shareholder approval, the
Group completed the acquisition of Inelo and the integration of the company
commenced. Following a significant planning exercise prior to closing, the
Group has focused on welcoming our new colleagues and customers, integrating
our commercial teams and started actioning on our detailed roadmaps. At
completion Inelo had around 87,000 connected trucks(3). The Group remains on
track to extract the synergies anticipated from the acquisition and deliver
double-digit adjusted earnings accretion in the first full year of ownership.
 

3. Inelo's 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.

 

Sustainability

As part of the refinancing project last September for our new Multicurrency
Term and Revolving Facilities Agreement, we have been negotiating with the
lenders to include some of our medium term ESG targets within the KPIs. These
ESG targets include reduction of GHG emmissions for us as a business and our
customers and female leadership in the organisation. The agreement, which is
soon to conclude, will include applicable margin adjustments relating to our
committed facilities, should we meet or not meet our ESG targets. The first
applicable year will be from FY 2024, based on FY 2023 results. This
commitment will further drive incentivization across our organization to
ensure we meet our targets and shows our commitment to making the industry
clean, fair and efficient.

 

Outlook

 

There has not been any significant deterioration in the economic and macro
environment since the Group confirmed its medium-term guidance at the year-end
results on the 16 March 2023. As a result, with Eurowag's strong first quarter
performance, the Board have confirmed the Group's medium-term guidance.

 

Directorate changes

 

The Group is pleased to announce the appointment of Steve Dryden, as an
Independent Non-Executive Director of the Company with effect from 1 June
2023. He will also be appointed as the Chairman of the Audit and Risk
Committee, and as a member of both the Remuneration Committee and the
Nomination Committee, with effect from the same date.

 

Steve is a highly regarded and experienced business leader who brings
significant financial and audit leadership experience and business acumen to
the Board. Most recently, he served as Chief Executive Officer of Flint Group
Holdings SARL and has previously held the position of Group Finance Director
of DS Smith plc. Steve achieved his professional accountancy qualifications
with PriceWaterhouse and holds a degree in chemical engineering from Leeds
University.

 

The Group further announces that Caroline Brown does not intend to seek
re-election to the Board at the Company's Annual General Meeting ('AGM') on 11
May 2023. Caroline will formally retire from the Board at the conclusion of
the AGM to pursue other business interests.

 

You can find the full press release on the directorate changes on the
corporate website https://investors.eurowag.com/investors/regulatory-news/
(https://investors.eurowag.com/investors/regulatory-news/)

 

 

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
industry. Eurowag's innovative solutions makes life simpler for small and
medium businesses in the Commercial Road Transportation industry across Europe
through its unique combination of payments solutions, seamless technology, a
data-driven digital eco-system and high-quality customer
service. www.eurowag.com (http://www.eurowag.com/)

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