IT services CEO feedback

Acquires Webstep's Swedish operations

SEK 100m run-rate sales contribution excl. sub-contractors. Potential to earn 8-9% EBIT margin. Acquired at ~4x EV/EBIT on potential earnings.

Weathering storms adeptly

Adj. EBIT +3% y-o-y, despite a 7% sales drop y-o-y. We make small estimate revisions. +16% adj. EBIT growth in '24e, 11x EV/EBIT adj.

Margin trough in Q1, but recovery uncertain

Negative net recruitment limits quick growth comeback , but earnings comps get easier from Q2e. EBITA cut 1-2%, market remains challenging, stick to HOLD.

Weak Q1 slightly below cons

Weaker market takes its toll

Recovery still awaits

We lower '24e-'26e adj. EBITA by 35-1%. Potential for utilisation improvement in H2'24. '24e-'25e EV/EBITA of 12-6x.

Parrying lower utilisation with more cost cuts

EWork Group AB: 1 director

A director at EWork Group AB sold 200,000 shares at 128.000SEK and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clear...

Know IT AB: 1 director

A director at Know IT AB bought 160,000 shares at 144.274SEK and the significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly ...

Knowit - First signs of slowdown hit the margin

Losses in Insight and growth investments hit Q3 margin Adj. EBITA -2-7% on lower margin assumptions 15% disc. to Sweco/AFRY gives TP SEK 260 (380): BUY

Knowit - Margin miss puts adj. EBITA -20% vs cons

Demand remains solid, 15% org growth (+5% vs cons) Higher costs and negative margin in Insight cause miss Estimates and share -5-10% despite recent weakness

Ework Group - Broad Q3 beat and still strong demand

3% sales beat and better GM drove 49% adj. EBIT beat We raise ’22e-‘24e adj. EBIT by 21-5% 11x ‘22e-‘23e EV/EBIT, ‘21-‘24e adj. EBIT CAGR of 13%

Sector Fast Comment - ABGSC’s Investor Day feedback

Rovio and EG7 attended ABGSC’s Investor Day COVID-rebasing in mobile gaming to normalise soon Important changes presented by new EG7 management

Knowit - No peak market moves, please

Acquires Ascend & Ionic for SEK 200m, SEK ~3.3m/head A strong 2022e gives

Ework Group - Strong growth, but disappointing margins

Sales +19% y-o-y, but EBIT only grew 4% y-o-y Minor changes to sales estimates, but -11% on ‘22e EBIT 14x-11x ‘22e-‘24e EV/EBIT vs. peers at 14x-9x

Knowit - Solid execution in Q2, market remains good

Q2 margin a tad weak but demand remains solid Adj. EBITA -1% 2022e, +7-10% 2023-24e on M&A Peers have come down, we stick to BUY, TP 380 (440)

Knowit - 6% adj. EBITA miss in Q2

5% org growth (ABG 6%) and the strong market remains Margin miss driven by increased costs in Solutions Estimates and share slightly down today

Sector Fast Comment - SE IT services lunch confirms strong market

Knowit and CAG CEOs attended a lunch event this week Demand remains strong in Q2, hourly prices on the rise Main challenge is net recruitment, but overall positive

eWork Group - Remote work growing in importance

Ability to work remotely is important for IT specialists Ework is benefitting from this trend 12x ‘22e EV/EBIT is 18% below IT services peers