Prodware is engaged in the publishing and hosting of business computer solutions. Co. publishes and integrates management software for accounting management, human resources, customer relations, pay stubs, production, etc. In addition, Co. is involved in the design and implementation of network applications and securitization services. These applications and services include supply of network systems, server installation and hosting, and installation of security software such as antivirus and anti-intrusion. Co. markets its products and services through a network of agencies in France, as well as through partner distributors internationally.
  • TickerALPRO
  • ISINFR0010313486
  • ExchangeEuronext Paris
  • SectorSoftware & Computer Services
  • CountryFrance

The positive on EBITDA, the negative on free cash flow

The positive on EBITDA, the negative on free cash flow EARNINGS/SALES RELEASES In 2018, Prodware had satisfactory EBITDA in a challenging transformation to SaaS. Conversely, free cash flow was disappointing due to a deterioration in the collection of trade receivables in Q4 18, a strong increase in capex due to the renovation of the headquarters and agencies within the group. Management confirmed the focus on the development of SaaS revenue, margin improvement and higher free cash flow by the end of the strategic programme 2016-21. FACT 2018 figures Revenue reached €175.9m (+4.9%, +4.3...

EBITDA margin increase anticipated based on good revenue. (Prodware)

EBITDA margin increase anticipated based on good revenue. EPS CHANGE CHANGE IN TARGET PRICE€ 15.5 vs 15.4 +0.72% The adjustment of the target price is related to the fine-tuning of our model (see our comments on the change of 2018E EPS). The share price has recovered since the beginning of the year 2019 (+10% ytd) but has underperformed the software sector (+12.3% ytd) (situation on 25 February 19). The stock is trading at low PE ratios (

Good revenue growth, above expectation.

Good revenue growth, above expectation. EARNINGS/SALES RELEASES In Q4 18, revenue growth (+10.7% on constant scope) was above expectation and benefited also from a low comparative in Q4 17 (-16.7% on constant scope). Prodware had record SaaS revenue growth (+45.9%) following a weak Q3 18 (+2%). Geographically, there was a good development in International (c.+11%), in particular in Benelux (+23.6%) which integrated the Microsoft Dynamics business acquired from CTAC in the Netherlands. FACT In Q4 18, revenue reached €52.7m (+12.6%, +10.7% on constant scope). Revenue growth was above expecta...

Decline in revenue as expected in Q3 18.

Decline in revenue as expected in Q3 18. EARNINGS/SALES RELEASES The decrease in revenue by -1.2% on a constant perimeter was broadly in line with expectation; note last year’s high comparative (+3% on constant scope in Q3 17). Software editing and integration were satisfactory overall while SaaS revenue decelerated strongly in Q3 18 following two buoyant quarters. We see this as temporary and not calling into question SaaS future growth since the expansion of SaaS is structural in the software market. FACT In Q3 18, revenue stood at €33.1m (-1.7% and -1.2% on constant scope). During the q...

Good margin achievement

Good margin achievement EARNINGS/SALES RELEASES The strong EBITDA margin (21.1% of revenue) resulted from revenue growth, management of subcontracting, the transformation to the SaaS mode and also no restructuring costs, all offsetting the surge in staff costs related to the recruitment of people with greater expertise to meet customer demand. FACT H1 18 revenue was released in July 2018. In our Latest on 23/07/2018 (see our comments), we concluded that revenue growth had accelerated above expectations at constant scope in Q2 18 (+6.9%) following the strong increase in Q1 18 (+4.9%). Prodw...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

Prodware - Assemblée Générale des actionnaires du 17 Juin 2019

Concernant la composition du Conseil, Proxinvest déplore l’absence de dispositions mises en place par la Société pour améliorer son taux d’indépendance, qui est actuellement nul. Par ailleurs en ce qui concerne les autorisations d'augmentation du capital, la Société ne suspend toujours pas ces opérations en période d'offre publique. Ces résolutions peuvent donc être assimilées à des dispositifs anti-OPA et de ce fait, vont à l’encontre de notre politique de vote. Proxinvest recommande donc aux actionnaires de ne pas approuver la majorité de ces autorisations.

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