Administer - Profitability improved more than expected
Administer’s Q1 profitability exceeded our expectations, improving by 17.4% y/y. Net sales remained flat, as the weak market environment continued to weigh on organic growth.
- Net sales in Q1 were EUR 19.0m (EUR 19.0m in Q1’24) slightly below our estimate of EUR 19.3m. The challenging market environment continued to impact net sales during the quarter.
- EBITDA in Q1 was EUR 2.0m (Q1’24: EUR 1.7m) vs. Evli EUR 1.7m. This translates to a margin of 10.7%, which is above the 2025 FY guidance range (7-10%).
- EBITA in Q1 was EUR 1.6m (Q1’24: EUR 1.3m) vs. Evli 1.2m.
- Operating result in Q1 was EUR 0.5m (Q1’24: 0.2m) vs. Evli EUR 0.1m.
- Across the main brands, HR services provider Silta showed the strongest Q1 net sales performance, being the only one to post y/y growth, up 0.6% to EUR 6.6m.
- HR and staffing provider Econia continued to be the weak spot, with net sales declining 8.4% to EUR 5.0m. The generally weak economic conditions continued to affect the development of net sales.
- Net sales in Administer’s accounting operations declined by 4.8% to EUR 4.7m. Three smaller acquisitions were made in the business area during the review period.
- Software services provider EmCe reported net sales of EUR 2.1m, down 0.4% y/y. Cross-selling with other business units has continued to perform well.
- Administer secured a EUR 0.7m price reduction in arbitration over the 2022 Econia acquisition, reducing related debt and goodwill. This has no impact on 2025 guidance.
- Guidance for 2025 (reiterated): Administer estimates that its net sales will be EUR 72-78 million and that its EBITDA-margin will be 7-10% in 2025.
- We currently estimate net sales of EUR 76.1m and EBITDA-margin of 8.2%.