SafeCharge: Strong set of H1 earnings, positive outlook, and attractive valuation
SafeCharge: (BUY, Fair Value 380p (+24%))Strong set of H1 earnings, positive outlook, and attractive valuation
Safecharge’s H1 18 earnings were above expectations both for revenues and adjusted EBITDA, with good momentum in revenues and transaction processing volumes, driven by new customer wins. The group slightly precised its FY 2018 guidance, namely revenues “at the top-end†of USD125-130m range and adjusted EBITDA still at USD36-38m (BG USD127.0m and USD37.5m; cons. USD128.1m and USD37.6m). We fully maintain our investment case, Buy recommendation and FV of 380p. The share is trading on EV/EBITDA of only 13.5x over 12 rolling months (14.8x in 2018e and 13.0x in 2019e) whereas such an online PSP deserves at least 17x and increasingly 20x+.
SafeCharge International Group is a global provider of payments services, technologies and risk management solutions for online and mobile businesses. Co. has a diversified, blue chip client base and is a trusted payment partner for customers from various verticals. Co. has been Payment Card Industry Data Security Standard Level 1 certified since 2007 and Co. has operations in the United Kingdom, Guernsey, Cyprus, Bulgaria, Israel, Austria, Singapore and Hong Kong. Co. has four products: multi-channel payments, payment acceptance, card services and professional services.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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