Singular People (SNG) H1 2024 earnings summary

Executive summary

• Achieved €51.7M in sales for H1 2024, up 6.1% from H2 2023, but down 1% year-over-year due to an exceptional H1 2023; net profit dropped to €3.16M from €5.04M year-over-year.

• Ordinary EBITDA reached €5.45M (10.5% margin), up 9% sequentially, but 30% lower year-over-year.

• The period saw significant M&A activity, with five companies acquired, expanding capabilities in consulting, training, and technology.

• Net debt reduced from €17M (1.6x EBITDA) at June 30 to €11.6M (1.1x EBITDA) by October 23, 2024.

• Equity rose to €46.66M from €44.81M at year-end 2023.

Financial highlights

• Sales grew 6.1% sequentially, reaching €51.7M in H1 2024; operating income fell to €4.32M from €6.93M year-over-year.

• EBITDA margin improved to 10.5% in H1 2024 from 10.55% in H2 2023, but below 15.99% in H1 2023; margin compressed due to higher personnel and external service costs.

• Net debt fell to €11.6M by October 2024, with a net debt/EBITDA ratio of 1.1x; financial liabilities rose to €20.16M from €11.37M at year-end 2023.

• Generated €0.9M in operating cash flow in H1 2024, despite significant investments and earn-out payments; cash and equivalents at period-end were €3.12M, down from €4.49M at year-end 2023.

• Total assets increased to €83.06M from €70.88M at year-end 2023, reflecting acquisitions.

Outlook and guidance

• 2024 sales and EBITDA margin below targets, but positive trends expected for 2025; management expects continued integration of acquired businesses and focus on operational efficiency.

• Sector IT growth forecasted at 9% for 2025, with software and AI subsectors expected to exceed 15%.

• Medium-term goals: restore EBITDA margin to 15% and achieve double-digit growth by 2025/2026.

• Ongoing investments in technology and talent are highlighted.