Viafin Service (VIAFIN) Q2 2024 earnings summary

Executive summary

• Achieved record revenue of €41.6M for H1 2024, up 10.3% year-over-year, with EBIT rising 45.5% to €1.8M and net profit at €1.5M.

• Maintenance operations contributed 83% of revenue, project operations 17%; acquisitions expanded service portfolio and workforce.

• Cash flow from operations was weak at €0.4M due to increased receivables from timing of shutdown work; cash reserves at €7.4M.

• Workforce grew to 592 on average, mainly from acquisitions; integration of OT Service Ltd and Wind Group business progressing as planned.

Financial highlights

• Q2 2024 revenue rose 24.8% to €26.6M; EBITDA up 43.9% to €2.0M; EBIT up 40.2% to €1.6M.

• H1 2024 EBITDA was €2.6M (6.2% margin), EBIT €1.8M (4.3% margin), EPS €0.40.

• Equity ratio at 48.5% (down from 52.3%); cash and cash equivalents at €7.4M (down from €15.6M year-over-year).

• Operating cash flow before interest and taxes at €0.4M, down from €3.5M year-over-year.

Outlook and guidance

• Expects full-year 2024 revenue to increase from €75.4M in 2023 and EBIT margin to improve from 5.5%.

• Anticipates operational cash flow and receivables to normalize in H2 2024.

• Maintenance business expected to comprise ~85% of 2024 revenue, project business ~15%.