REG - Eurowag - Trading Update

WAG Payment SolutionsAnnouncement

18/01/2024 07:00

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RNS Number : 0747A  Eurowag  18 January 2024

18 January
2024

W.A.G payment solutions plc

 

("Eurowag" or the "Group")

 

Trading Update

 

Robust performance, in-line with guidance

 

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 industry ("CRT"), today announces an unaudited trading update
for the 12 months ending 31 December 2023.

Financial highlights for 12 months(1):

·    Net revenue(2) for the full year is expected to be around €256m
(2022: €191m), representing 34% year-on-year growth. This sustained growth
is supported by organic growth from both new customers and the cross-selling
of new capabilities, as well as the significant contribution of around €37m
from our Inelo acquisition.

·    Organic net revenue(3) is expected to be around €218m, representing
14% year-on-year growth, in-line with guidance announced at the half year
results.

o  Mobility solutions organic revenue(3) is expected to be around €72m
(2022: €56m), representing 28% year-on-year growth, driven by the effective
cross-selling and new automotive strategic partnerships. Q4 23 organic revenue
grew around 9% to €19m; the reduction of quarter-on-quarter growth is due to
a tougher comparison against Q4 22 during which we won two large navigation
and telematics deals.

o  Payment solutions organic revenue(3) is expected to be around €146m
(2022: €135m), representing 8% year-on-year growth. Q4 23 organic revenue
grew around 6%, an improvement from flat growth during Q3 23.

·    If we had acquired Inelo at the start of the financial year, net
revenue contribution to the Group would have been around €47m.  ( )

Martin Vohánka, CEO and Founder said:

"I am pleased to end the year with a robust performance, sustaining organic
double-digit growth despite the challenging macroeconomic conditions affecting
the European CRT industry with fewer miles being driven. This performance
highlights the resilience of our business model and mission-critical nature of
our offering, and demonstrates the success of our key strategic initiatives,
which include the diversification of our revenue mix through acquisitions,
expanding our customer base and geographic reach and continued focus on
cross-sell opportunities. We remain on track to deliver the industry's first,
fully integrated end-to-end digital platform in Q4 2024, and we remain
committed to our purpose of transforming the CRT industry to make it clean,
fair and efficient."

 

                     Net revenue       Year-on-year growth (%)  Organic revenue³   Organic

(€m)
(€m)
year-on-year growth (%)

                     Q4 2023  Q4 2022                           Q4 2023
 Payment solutions   41       38       7%                       40                 6%
 Mobility solutions  31       17       83%                      19                 9%
 Total               72       55       31%                      59                 7%

 

                     Net revenue          Year-on-year growth (%)  Organic revenue³   Organic

(€m)
(€m)
year-on-year growth (%)
                     FY 2023(2)  FY 2022                           FY 2023
 Payment solutions   147         135      9%                       146                8%
 Mobility solutions  109         56       95%                      72                 28%
 Total               256         191      34%                      218                14%

 

Operational highlights(1):

·    The Group's financial performance was supported by strong operational
performance. At the end of Q4 2023:

o  The average number of payment solutions active customers rose year-on-year
by 7% to 18,800 (2022: 17,522);

o  The average number of payment solutions active trucks rose year-on-year by
8% to 98,300 (2022: 90,980).

 

Outlook

Notwithstanding the sustained macroeconomic headwinds, the Board does not
anticipate any changes to the near-term guidance communicated at the half year
results.

We expect net revenue growth to be mid-teens in the near-term and return to
high teens in the medium-term. FY 2023 margin levels should be in-line with FY
2022, at around 43%, and improve to high-forties in the medium-term. Following
the acquisition of Webeye and Inelo, we expect ordinary capex to be at just
above 10% of net revenues, and at around 10% over the medium-term. Our
priority remains to reduce net debt to adjusted EBITDA to our target leverage
range of 1.5x to 2.5x.

Notes:

1.     Please note the numbers are unaudited and are therefore preliminary
and growth rates may differ due to rounding. Final 2023 audited results for
the Group are expected to be published on 26 March 2024.

2.     Net revenue includes just over 9 months of contribution from Inelo
and subsequent synergies following the completion of the acquisition.

3.     Organic revenue excludes the contribution from Inelo.

 

 

ENQUIRIES

Eurowag

Carla Bloom

Head of Investor Relations and Communications

+44 (0) 789 109 4542

investors@eurowag.com

 

Instinctif Partners

Bryn Woodward

IR and international media

+44 (0)20 7457 2020

eurowag@instinctif.com

 

About Eurowag

 

Eurowag was founded in 1995 and is a leading pan-European integrated payments
and mobility platform focused on the Commercial Road Transportation
industry("CRT"). 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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