Zalaris - Another quarter of records

Zalaris delivered its 11th consecutive quarter of revenue growth in Q324, alongside record quarterly revenue and profitability. Contract momentum continues with both existing clients and new contracts, resulting in a net retention rate within Managed Services of 108%. Zalaris has made good progress towards its mid-term adjusted EBIT margin target of 12–15%, with a 17.9% margin in the Managed Services business boosting group margins to 10.9% (Q323: 8.5%). The enhanced profitability has been drive...

Delivering on promises

Better across the board

Zalaris - Tenth consecutive quarter of revenue growth

Zalaris delivered a tenth consecutive quarter of year-on-year revenue growth in Q224 to another record of NOK323m. The company continued to win new business as well as renegotiating contracts with existing customers to bring them onto the PeopleHub platform. Low churn also contributed to a net retention rate within Managed Services of 106%. Adjusted EBIT margins improved as the first Asia-Pacific contribution and cost efficiencies offset lower year-on-year margins in both Managed Services and Pr...

Credible improvement program in Germany

Solid growth, weaker margins

Zalaris - Continuing contract momentum in FY24

Zalaris reported its ninth consecutive quarter of year-on-year revenue growth in Q124, up to a record NOK318m. New contract momentum has continued, while the net retention rate of existing clients within Managed Services was 109%, driven by an increase in upselling of additional services. Profitability is improving as the benefits from its EBIT improvement programme are bearing fruit alongside operational leverage. Zalaris’s strong contract momentum has led us to upgrade our revenue estimates by...

Building confidence at double-digit margins

Q1: EBIT adj. +7% above consensus. '26 targets imply adj. EPS of NOK 4.5-6.1. Valuation undemanding at 12.3x '25e EV/EBIT adj.

Zalaris - Commencement of strategic review

Zalaris announced a strategic review process on 2 April, as the company explores potential opportunities to accelerate growth and maximise value for both customers and shareholders. The potential of a sale and delisting reflects the sentiment from many other listed technology businesses that have recently gone private, finding public markets a restraint to investment in growth. There is no certainty that an initiative, event or transaction will take place. Zalaris’s Q124 results are scheduled fo...

Zalaris - Simplifying HR and payroll solutions

Zalaris is a leading European provider of comprehensive payroll and HR solutions and services, covering the entire employee lifecycle. The company’s proprietary platform PeopleHub is tailored towards multinational corporations or large and complex single-country projects, the more attractive end of the business process outsourcing (BPO) market. Due to long-term relationships with customers and a low churn rate, the company has an improving financial profile with good revenue momentum as well as ...

Zalaris - Solid growth, but lower-than-expected EBIT

Q3: Solid growth, but lower EBIT due to higher other opex Contracted ARR implies 1-2% higher FY 2023 revenue Fairly neutral to slightly negative share price reaction

Zalaris - Solid growth, but lower-than-expected EBIT

Q3: Solid growth, but lower EBIT due to higher other opex Contracted ARR implies 1-2% higher FY 2023 revenue Fairly neutral to slightly negative share price reaction

Zalaris - Growth is back, margin is next

Growth prospects remain solid We expect margin improvements from 2023 Retain BUY, with reduced TP of NOK 51 (62)

Zalaris ASA: 3 directors

Two Directors at Zalaris ASA bought 34,000 shares at 25.000NOK. The significance rating of the trade was 44/100. 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 s...

Zalaris - EBIT miss due to Professional Services

Q2: Revenue 2% below driven by Professional Services Divesting vyble to focus on core business Expect a negative share price reaction

Zalaris - All set for a growth rebound in 2022

Increasing demand for Zalaris’ BPO services Underlying profitability verifies margin improvement case Upgrade to BUY (Hold) with a new TP of NOK 62 (55)

Zalaris - Waiting for the catch-up effect on financials

Zero organic growth in Q3, but the ARR base is growing Net leverage remained unchanged at about 2x M&A is likely the trigger for when/if the bond is called

Zalaris - Still short-term soft, but no cause for concern

Growing pipeline outweighs expectation miss NOK 69m in new contracts and net additions YTD Currently participating in several M&A processes

Zalaris - Margin fixed, now the focus turns to growth

Good margin, but growth absent in Q4 Limited estimate changes We reiterate HOLD, but increase our TP to NOK 55 (43)