Profile Software | Reprofiling for top line acceleration
Leading international financial software provider and institutional sector platform developer, c60% recurring base, €130m backlog – Profile (PROF) is a leading Greek financial software company with a broad portfolio of solutions (spanning the entire value chain of the financial sector) and strong international presence (>54% of sales), while also engaging in projects for Greek state and Large organizations (LSS). The business model is characterized by a c60% recurring revenue base thanks to the long-term nature of active contracts and >95% client retention rates, further underpinned by a formidable c€130m backlog (effectively secured revenues for the next 3 years).Benefiting from secular fintech tailwinds, exposure to the Greek digitization theme – Recent publications from consultancies and research firms all indicate elevated levels of IT spending for SaaS transition within the financial sector. Profile seems quite well-positioned to capitalize on the growing demand for SaaS, having completed an extended investment cycle of updates for its solutions portfolio and given its strong potential for upselling to clients. We highlight Profile’s recent launch of a cross-compatible AI add-in for financial solutions as a solid indicator of effective R&D which further expands growth avenues. We expect organic growth in financial solutions to be complemented by inflows from Greek public sector projects, which we estimate will contribute c€120-130m in total over 2024-28, underpinned by the solid backlog and RRF execution.
Profitability to more than double through 2026e – Group top line was rebased to €30.1m in 2023 (from 45% discount vs. the EU IT sector. We base our valuation on a blended methodology (DCF at 8.9% WACC and M&A-based component) yielding a PT of €6.5. This would place PROF at
Profile Systems & Software SA. Profile Systems and Software SA is a Greece-based information technology (IT) company. The Company provides technology solutions to the Banking and Investment Management industries. The Company's specialization lies in Private Wealth Management Software and Investment Portfolio Management Software, as well as a range of Banking Software solutions. It partners with global IT and software companies, providing integrated software solutions for the financial services sector covering banking, investment management, risk and compliance, and capital markets. In addition, the Company offers a range of services, including project management, consulting, customization, customer support and training. The Company operates offices in Geneva, Dubai, London, Singapore, Athens and Nicosia.
Eurobank Equities is a Greek-based firm offering research, sales and trading services to institutional, corporate and private clients. The company is wholly owned by Eurobank, one of the 4 systemic banks in Greece.
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