Relatech (RLT) Q4 2023 earnings summary

Executive summary

• FY23 value of production reached €98.5m, up 41% YoY, and sales revenue was €91.0m, up 50%; reported Group net profit rose 114% to €3.6m.

• Recurring revenue grew 68% YoY to €35m, or 39% of total revenue, supported by RePlatform and R&D investment.

Financial highlights

• Foreign-customer revenue was €25.6m, up 45% YoY; over 29% of revenue came from foreign customers.

• Adjusted EBITDA was €16.1m, up 22% YoY; reported EBITDA was €14.1m, up 37%.

• Adjusted EBIT reached €9.5m, up 9% YoY; reported Group net profit was €3.6m, up 114%, while adjusted net profit was €5.5m versus €5.4m in FY22.

• R&D spending was €5.6m, about 6% of revenue; other revenue and income totaled €2.7m, mainly research grants and tax credits.

Outlook and guidance

• Italy GDP growth was forecast at 0.7% for 2024, with digital transformation, Cloud, AI, cybersecurity and digital skills identified as market opportunities.

• Ongoing uncertainty from geopolitical developments, inflation and restrictive monetary and credit policies frames the operating outlook.

• The business was described as positioned to capture opportunities in digital transformation; no quantified FY24 financial targets were stated.