CHAPTERS Group (CHG) H2 2023 earnings summary

Executive summary

• Achieved strong growth in 2023, expanding to 41 operating companies and over €92 million in revenue, with EBITDA exceeding €25 million and invested capital surpassing €165 million.

• Strategic focus on acquiring and developing "mission critical" companies, especially in vertical software, technical services, and telecoms.

• Expanded international presence with acquisitions in the Czech Republic and France, and increased stake in Fintiba GmbH to 55%.

• Two capital increases in 2023 and a €52 million capital commitment in April 2024 strengthen the financial base for future growth.

Financial highlights

• Revenue rose to €70.8 million in 2023 from €42.1 million in 2022; pro-forma revenue for all operating companies was €87.2 million.

• Adjusted EBITDA for majority-owned companies reached €24.5 million, up from €14.9 million in 2022.

• Adjusted earnings per share increased to €0.28 (2022: €0.05); basis value per share rose to €8.06 (2022: €6.52).

• Net loss for the group was €6.4 million, mainly due to non-cash effects from purchase price allocations and goodwill amortization.

• Cash flow from operations improved to €7.4 million (2022: €5.7 million); cash and equivalents at year-end were €50.8 million.

Outlook and guidance

• Four new companies joined in early 2024, bringing the group to 45 companies and expected 2023 revenue of ~€100 million and adjusted EBITDA of ~€27.5 million.

• Management expects slight growth in revenue and EBITDA for 2024, with basis value per share projected between €9.10 and €10.10.

• Ongoing focus on expanding in vertical software and international markets, with planned capital increase of €60–80 million in 2024.