CHAPTERS Group (CHG) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €50.0 million, up 49% year-over-year, with adjusted EBITDA at €13.3 million, reflecting continued inorganic growth and platform expansion.

• The group completed five acquisitions in the software sector and became the largest shareholder in Software Circle plc, further diversifying its portfolio.

• A capital increase in August 2024 raised €85 million, supporting further acquisitions and platform development.

• The group spun off the ENTRO Group and established new platforms, including Altamount Software and Waterkant Software, strengthening its presence in cybersecurity and vertical market software.

• As of October 2024, the group comprises 45 operating companies, with a focus on mission-critical businesses across Europe.

Financial highlights

• H1 2024 revenue: €50.0 million (H1 2023: €33.7 million); adjusted EBITDA: €13.3 million (H1 2023: €8.9 million).

• Adjusted earnings per share: €0.11 (H1 2023: €0.10); excluding securities income: €0.02 (H1 2023: €0.11).

• Net loss for H1 2024: €5.9 million, mainly due to acquisition-related interest and one-off legal expenses.

• Cash flow from operating activities: €8.8 million; cash and cash equivalents at period end: €38.5 million.

• Equity ratio at 54.7% (Dec 2023: 55.4%); total assets increased to €261.8 million (Dec 2023: €223.9 million).

Outlook and guidance

• Management expects stable to slightly positive sales and adjusted EBITDA for FY 2024 compared to 2023.

• Further dynamic development and additional acquisitions anticipated in H2 2024.

• Operating costs for the parent company projected at €2.75 million for 2024, excluding share-based compensation.