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Alcadon: Strong cash flow, adjusted earnings in line - ABG

Adj. EBITA SEK 26.6m (+1% vs. ABGSCe 26.4m)
Q4 implies no material changes on adj. numbers (+8-9% on rep. EBITA)
Trading at 9x '24e EV/EBITA on our pre-Q4 estimates


Q4 outcome

Sales were SEK 432m (+5% vs. ABGSCe 409m), up 8% y-o-y (+3% organic growth vs. ABGSCe -1%). Adj. EBITA was SEK 26.6m (+1% vs. ABGSCe 26.4m), for a margin of 6.2% (ABGSCe 6.5%), and there were positive NRIs of SEK +12.7m (ABGSCe 0) from earn-out reversals and FX revaluations of earn-outs. Cash flow was strong, with lease adj. FCF/adj. EBITA of ~140%, which was helped by a signifcant NWC release. At the segment-level, UK was strong, particularly in the data centre vertical, yet it was also boosted by a larger order, while the fibre-dependant Danish segment remains very weak.
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