Singular People (SNG) H2 2023 earnings summary

Executive summary

• FY 2023 revenue reached €101.1M, up 13% YoY at constant perimeter; ordinary EBITDA was €13.2M, with a 13.1% margin.

• Revenue grew 70% from 2021 to 2023 at comparable perimeter; the 2024 budget targets 15% growth, with 2024–2025 priorities balancing expansion and profitability.

• Recurring clients generated over 91% of average revenue in recent years; revenue came from more than 500 clients, though the top five represented 50.7%.

Financial highlights

• Revenue was €101.1M versus €89.8M in 2022, up 13% at constant perimeter; 2023 revenue was 70% above 2021.

• Ordinary EBITDA was €13.2M, down 1% YoY; it excludes €0.5M of extraordinary items.

• Ordinary EBITDA margin was 13.1%, versus 14.7% in 2022; management attributed the decline mainly to leadership transition costs and commercial investment.

• Net debt was €6.9M, or 0.52x EBITDA; year-end cash was €4.5M versus €6.8M in 2022.

Outlook and guidance

• The 2024 budget assumes 15% revenue growth; the 2024–2025 annual target range is 15%–20% sales growth and a 14%–15% EBITDA-to-revenue ratio.

• 2024 priorities include growth without headcount expansion, salary-cost control, gross-margin protection, and shifting toward higher-value services and packaged solutions.

• Staff Augmentation is targeted below 30% of mix; activity outside Spain is targeted to rise from 35% to over 40%, with potential growth in KSA and the UAE.

• Management expects 2024 H2 profitability to exceed H1; Q1 2024 margin was expected to be similar to Q4 2023.

• M&A investment is expected only for highly complementary opportunities at reasonable multiples, with commercial synergies and access to large accounts.