Edison Investment Research - Tinexta (TNXT) Tinexta - Boosting international expansion

Report

Edison Investment Research

Richard Williamson

Tinexta - Boosting international expansion

Tinexta has stated for some time that its subsidiary, InfoCert, has significant growth opportunities by expanding across Europe in the rapidly growing digital trust market. Bregal Milestone, a leading private equity investor in European technology, has agreed to buy a stake in InfoCert, which should provide Tinexta with access to a strong pipeline of acquisition candidates, specialism in post-merger integration, and expertise in new domestic markets where Tinexta has limited or no presence. Along with its recently announced acquisition of CertEurope, with a strong presence in France, for up to €72.2m, the investment in InfoCert suggests a possible step change in how quickly Tinexta hopes to consolidate the European market. We reiterate that Tinexta’s M&A has historically been accretive to its future growth prospects and profitability.

28/10/2021 2 EN

Underlying

Tinexta

Tinexta SpA, formerly Tecnoinvestimenti SpA, is an Italy-based holding company primarily engaged in the software and Internet services industry. Through its subsidiaries it operates three segments: Digital Trust, Credit Information and Managment, and Innovation and Marketing Services. Digital Trust offers solutions for the digital identity and the dematerialisation of processes with products and services, such as certified electronic mail, electronic archiving, digital signature, electronic invoicing, and solutions for the secure and simplified transmission of legal and financial documents. Credit Information and Managment provides services and products to assess the credit of businesses and individuals, guarantee expected cash flows, and minimise insolvency issues and late payments. Innovation and Marketing Services offers a consultancy platform for enterprises to support them in phases of manufacturing growth and expansion of commercial activites, including abroad.

See profile

IT0005037210 Italy

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

See profile

Analysts

Richard Williamson

Other Reports on these Companies

Edison Investment Research

Tinexta - Strongest year since FY18

Tinexta enjoyed its strongest year for underlying profit growth in FY23 since FY18 which, given the recent challenging macro environment, is testimony to the changes in its business portfolio. Management has a consistent strategy of strengthening its market leadership, greater coordination between and integration of its divisions, M&A and expanding geographic coverage. Management’s new guidance suggests an even better year for underlying profit in FY24 and high-teens growth over the next three years, which looks at odds with its prospective valuation multiples that are at a discount to its own...

March 20, 2024 March 20, 2024 1 EN

Edison Investment Research

Tinexta - Business Innovation expansion in France

The announcement of the binding and irrevocable offer to gradually acquire the whole of ABF Group (ABF) is consistent with TinextaÃ¢ÂÂ€ÂÂ™s strategy of internationalising its core businesses, in this case Business Innovation (BI), which is TinextaÃ¢ÂÂ€ÂÂ™s second fastest growing (by revenue) and most profitable division, according to management guidance. The acquisition is expected to be accretive to TinextaÃ¢ÂÂ€ÂÂ™s overall growth and profitability, with an expectation that ABFÃ¢ÂÂ€ÂÂ™s future growth will come from a combination of increasing its addressable market and adding incremental serv...

December 22, 2023 December 22, 2023 1 EN

Edison Investment Research

Tinexta - Confirming FY23 guidance

Tinexta’s Q323 results showed continued strong underlying revenue and profit growth in what is typically a relatively small quarter from a revenue and profit perspective due to the inherent seasonality of its Cyber Security (CS) and Business Innovation (BI) divisions. Management’s reiteration of its previous financial guidance, albeit with different growth drivers than originally anticipated, is reassuring given the dependence of the full year results on the performance of the current, final quarter, in which more than 40% of annual profit is typically generated. Our DCF-based valuation of €30...

November 20, 2023 November 20, 2023 1 EN

Sylvania Platinum - Annual guidance maintained, despite strike

Sylvania has maintained annual production guidance despite Q324 results being affected by a 22-day strike, resulting in 10% lower production. The PGM basket price was stable during the quarter, with positive platinum momentum offset by palladium weakness and rhodium prices stable. Operating costs increased by 5.6%, in line with expectations. FY24 production guidance is for 75,000–76,000oz, despite the challenges in Q324. Our PGM outlook is unchanged from our moderated forecasts earlier in the year. We have cut our FY24 EPS forecast by 2.2% from 7.4p to 7.2p on the Q324 miss, but have lifted ou...

3h / 54m 3h / 54m 1 EN

Richard Williamson

Richard Williamson

1Spatial - Investing in the transformational SaaS opportunity

1Spatial’s FY24 results reflected robust momentum for the enterprise business and continued improvement in the revenue mix, with investment in growth suppressing margin and cash generation. This investment phase will continue in FY25 to lay the foundation for transformational growth from 1Streetworks and in the US in the coming years. Our scenario analysis indicates the upside from successful execution is significant, with further wins for 1Streetworks and in the US being the key catalysts for more rapid, operationally geared growth to be priced in.

4h / 42m 4h / 42m 1 EN

Richard Williamson

Richard Williamson

Datatec - FY24 underlying EPS more than doubles y-o-y

In a second more detailed trading update for FY24, Datatec confirmed revenue growth of 6% to $5.46bn, with Westcon International delivering excellent performance, Logicalis International having a strong H2 and Logicalis Latin America affected by difficult market conditions in Argentina and Brazil. The company also provided provisional EPS data, with reported EPS likely to come in ahead of our forecast and underlying EPS just below our forecast. We maintain our forecasts pending FY24 results on or around 27 May.

23h / 46m 23h / 46m 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Tinexta - Boosting international expansion

Tinexta - Strongest year since FY18

Tinexta - Business Innovation expansion in France

Tinexta - Confirming FY23 guidance

Sylvania Platinum - Annual guidance maintained, despite strike

1Spatial - Investing in the transformational SaaS opportunity

Datatec - FY24 underlying EPS more than doubles y-o-y

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe