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Aktieanalys utförd av tredje part

Vestum: Another good capital allocation move - ABG

Vestum

Detta är en aktieanalys producerad av tredje part och reflekterar därför nödvändigtvis ej våra åsikter och värderingar

Ladda ner rapporten (PDF)
Two divestments and one acquisition announced
Net effect: EBITA +4%, margins to increase from 9.8% to 11.5%
In line with company's strategy and ROCE accretive


Divesting service units, acquiring product company

Vestum has announced that it will make two new divestments of service-oriented units with high project exposure, Rosenqvist Entreprenad and Markax. However, in contrast to its previous divestments, which aimed at reducing gearing, the cash flows generated from this divestment, will be reinvested into the acquisition of Nortech, a leading designer and supplier of monitoring and control technology for the UK water and electricity distribution sector. Nortech has generated a five-year organic growth CAGR of 16%, with 30% margins and >200% EBITA/working capital in 2024, which is impressive. We think this acquisition is in line with what management has said it want to do, focusing on product companies within Flow Technology, although a new divestment was a bit unexpected. Even so, we appreciate the divestment as it should contribute to higher margins and ROCE for the group while maintaining gearing at prudent levels.
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