FY 2018: Binect performs well, KeyIdentity still a “problem childâ€
On April 30, the MAX21 AG (ISIN DE000A0D88T9, Open Market, MA1 GY) published its fiscal year report. During FY 2018, consolidated revenues increased by 27% (yoy) to €7.57 mln. and exceeded our forecast by 6.6%. Albeit still negative, EBITDA improved from €-4.30 mln. to €-1.10 mln. and, here again, exceeded our forecast by 15.4%. These improvements are attributable to the positive operating result of Binect as well as to cost savings in personnel and other operating expenses.
In the context of the declared aim to reduce costs at holding level, the company has decided to streamline regulatory reporting processes by switching the stock exchange transparency level from “Scale” to “Basic Board”. This change allows the report to be prepared exclusively in accordance with German GAAP (HGB) and makes consolidated financial statements according to IFRS obsolete.
Binect significantly increased its strategically relevant revenues and sustainably confirmed operating break-even on the full fiscal year level. Total mail volume increased to 107.5 mln. (+10.6%) which was 4% lower than our previous estimate of approx. 112 mln. Strategic revenue, i.e. the mailings via Binect´s proprietary systems increased by almost 160% and accounted for 26% of sales revenues in this segment. Still, the major part of mailings is being processed via E-POST BUSINESS BOX (operated by Deutsche Post) with a solid growth of approximately 10%. In our view, Binect´s hybrid/digital mail processing has evolved into a sustainable business and will continue to positively contribute to top line and profitability of the group.
KeyIdentity (KI), while still not profitable, increased its strategic revenues with LinOTP by 31% to €1.1 mln. This figure translates into monthly recurring revenues of €93 ths. which approaches the €100+ ths. targeted by the company (KI no longer reports the cumulative Life Time Value of its contracts with clients). The overall decline in revenues by 13% owes to the fact that both, the consulting business (penetration testing) and the sale of hardware [tokens], has been discontinued. Currently, management – in accordance with the supervisory board – considers the option of a sale of KI.
With this research update we drop our coverage due to termination of the contract. Our estimates, previous price target as well as our latest rating are not valid anymore.
Max 21 AG, formerly MAX21 Management und Beteiligungen AG, is a Germany-based technology holding that specializes in the areas of information security and digital communications. Among others, the Company holds interests in Binect GmbH and KeyIdentity GmbH. Binect GmbH is a provider of encrypted communication, and develops software that allows or collect and coordinate e-mails from various platforms. In cooperation with Deutsche Post AG, Binect GmbH offers a hybrid business communication and postal distribution solution, including printing, enveloping, franking and delivery. KeyIdentity GmbH provides digital access and identity security solutions. It is a supplier of the LinOTP Product Suite, which is used in adaptive multi-factor authentication.
Since 2007, BankM AG (Frankfurt am Main, Germany) is the partner of small and medium-sized enterprises and specializing in capital market financing with its experienced, interdisciplinary team. SME customers benefit from individual service and rapid access to selected investors that fit their needs. BankM's services include capital market advisory, arranging IPOs and capital increases for equity financing, debt advisory and debt capital mediation, designated sponsoring and research as well as M&A, hereby specializing in the identification of suitable strategic partners in China.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.