WOOD Flash – ANY PLC: 2Q20 – improving outlook could result in a return to paying dividends this year
ANY reported its 2Q20 results yesterday (17 August), after the market closed. The impact of the pandemic was significant, with revenues down 30.7% yoy, and 3.8% lower than our expectations. Sharp declines in revenues were visible across all its core business units, with form production showing some resilience (down only 11.1%). Net income surprised to the upside, however, reporting HUF 9m, compared to our expectation of a HUF 45m loss. This was driven solely by a change in inventories related to security and card products work-in-production. The free cash flow was negative for the quarter, and the net debt to EBITDA jumped to 2.25x, the highest level, driven by both operational weakness and working capital pressure. On the positive side, management’s commentary indicates that the worst is behind us, with July showing a pick-up in orders. This could lead to management revisiting its decision, at the beginning of the pandemic, not to pay a dividend, which could be a positive trigger, given the company’s profile as a stable dividend payer. Overall, we view the results as neutral.Any Security Printing is a securities products group based in Hungary. Co. produces security products and solutions (tax stamps. stickers with security elements), plastic and paper cards (document cards, bank and telephone cards, commercial cards), personalized business and administration forms, and conventional printing products. Co.'s product offering its organized along three segments: Security Products, Solutions (paper-based documents, excise and tax stamps, security printers and security inks, additives); Card Production, Personalization (document cards, bank cards and loyalty cards); and Form Production, Personalization (transactional mailing, business, lottery and election forms).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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