Administer - Clear profitability improvement
Administer's Q4 results were mixed, with net sales declining slightly more than we had estimated, while profitability improvement was stronger. The company will specify its outlook for 2026 once the business transfers from the Sarastia acquisitions are finalized, expected from the beginning of April.
- Net sales in Q4 were EUR 17.9m (EUR 18.7m in Q4'24), below our estimate of EUR 18.3m. The market environment remained challenging, with Finland's broader economic weakness suppressing demand and limited room for organic growth.
- EBITDA in Q4 was EUR 1.5m (Q4’24: EUR 0.9m) vs. Evli EUR 1.1m. This translates to a margin of 8.5%. The improvement from last year was better than we expected, with the support from efficiency measures.
- EBITA in Q4 was EUR 1.1m (Q4’24: EUR -0.2m) vs. Evli EUR 0.7m.
- Operating result in Q4 was EUR -0.1m (Q4’24: EUR -1.4m) vs. Evli EUR -0.4m. The operating result was weighed down by increased goodwill amortization of EUR -1.3m and NRIs of EUR -0.3m.
- Net sales for HR services provider Silta in Q4 declined 4% to EUR 6.2m. The tender pipeline improved and a new public sector client was acquired at the end of the year.
- Net sales for HR and staffing specialist Econia in Q4 declined 12% to EUR 4.5m. The decline was steeper than expected.
- Net sales for Administer’s accounting operations amounted to EUR 4.3m, down 1% y/y.
- Net sales for software services provider EmCe amounted to EUR 1.9m, down 5% y/y.
- Business area performance was broadly as expected, excluding Econia where the sales decline exceeded our estimate.
- Efficiency measures will continue as the company works to improve profitability, while also preparing for reporting in accordance with IFRS standards.
- The BoD proposes a dividend of EUR 0.05 per share, while we did not expect a dividend.
- Guidance for 2026: The company did not provide guidance and will specify its outlook for 2026 when the transfer of business operations from the Sarastia acquisitions is finalized, targeted for 1 April 2026.