SGT German Private Equity GmbH & Co KGaA (PGH) H1 2024 earnings summary

Executive summary

• Private Equity Asset Management business ceased in February 2024, with the liquidation of TGS24/SGTPTE planned for 2024 and net assets of over €4M to be transferred to the group.

• Acquisition of majority stakes in three PayTech companies (Funanga AG, Campamocha Ltd., Surfer Rosa Ltd.) announced in August 2024, pending closing conditions.

• The group is repositioning as a listed PayTech holding with a projected 2025 transaction volume of €140M and revenue of €15M; acquired companies are profitable and cashflow-positive.

• Significant reduction in outstanding shares from 46.3M to 9.6M after the return of 36.7M shares by the former major shareholder.

Financial highlights

• Revenue for H1 2024 was €840K, down sharply from €4.66M in H1 2023, reflecting the wind-down of PE Asset Management.

• EBIT for H1 2024 was -€755K, compared to €317K in H1 2023.

• Net loss for H1 2024 was €638K, or -€0.03 per share, versus a profit of €208K in H1 2023.

• Cash and equivalents increased to €1.78M at June 30, 2024, up from €1.29M at year-end 2023.

• Total assets declined to €16.68M from €20.70M at year-end 2023.

Outlook and guidance

• The new Payments segment is expected to generate revenue and profit only after the PayTech acquisition closes.

• The group forecasts a consolidated net loss of at least €1–2M for 2024.

• The acquired PayTech companies are expected to deliver strong growth, with 2025 revenue projected at €15M and transaction volume at €140M.