(Boursier.com) — Line data rises 2.6% to 42.80 euros on Tuesday, while the publisher of global solutions and outsourcing service provider for asset management, insurance and credit professionals announced annual results a marked increase in 2021. The group generated revenue of €160.2 million in 2021, down 0.5% in published data but up 0.5% on an organic basis.
The 2021 performance benefited from the full effect of the rationalization efforts implemented in 2020 on the occasion of the emergence of the health crisis. These focused in particular on improving the efficiency of operational processes, applied to all departments (R&D, Delivery, Support Functions.).
The Group’s EBITDA grew by 8.9% to 52.8 ME. This increase takes into account the productivity improvement measures implemented in 2020. It also benefits from a favorable base effect of €1 million corresponding to restructuring costs recognized last year. The higher level of EBITDA than historically still includes temporary reductions in expenses linked to the pandemic (travel freeze, event cancellations, etc.).
Operating profit came to 38.4 ME, a more sustained increase of 17.7% compared to 2020. It takes into account a decrease of 1.6 ME in allocations in connection with the end of the amortization of intangible assets from the Gravitas and Capitalstream acquisitions.
The financial result amounts to +0.2 ME, against -5.3 ME for the previous financial year. The difference is mainly explained by foreign exchange gains of +2.6 ME in 2021 against a foreign exchange loss of -2.6 ME in 2020 but also by a decrease of 0.6 ME in the cost of financial debt related to the early repayment of the bond debt of 35 ME and the renegotiation of a syndicated bank loan offering better pricing conditions.
A net result of 28.3 ME
The 2021 tax expense stands at 10.3 ME, up 3.2 ME compared to 2020. This increase is justified by the increase in the tax base linked to better results but also by a one-off base effect with the adoption in 2020 of the IP box regime which had made it possible to recognize two years of tax savings in a single financial year (2020 and 2019), including €1.2 million in tax reduction for 2019. As a result, the net income amounted to 28.3 ME, up 39.7%, representing a net margin of 17.7%.
Net earnings per share (EPS) stood at 4.42 euros in 2021 compared to 3.09 euros in 2020.
Shareholders’ equity increased by 24.3 ME to reach 145.8 ME, mainly by taking into account the net profit for the year. Net debt was down sharply at 43.2 ME (vs. 67.1 ME) reflecting the robustness of Linedata’s business model, offering high cash generation in all its market segments. Net debt represents 0.9 times consolidated 2021 EBITDA excluding IFRS 16 effect.
A dividend of 1.60 euro per share will be proposed at the next General Meeting.
Prospects displayed
Building on the success of the migrations of its installed base to new software platforms, Linedata will increase its commercial development in 2022 towards new prospects with a range of software and services that meet the expectations of Asset Management and Lending players. & Leasing.
Portzamparc speaks of a “new year of growth in results and strong cash generation despite sluggish invoicing”. The valuation remains attractive with a PER of 11, enough to aim for a price of 46.10 euros by remaining buying on the file.