Always comparing with 2019, since 2020 would be too easy
The founder and CEO of BTS, Henrik Ekelund, presented yesterday at the ABGSC Investor Days. BTS work with strategic implementation and comes in after a management consulting firm have set the strategy for the client. BTS came to the stock market 20 years ago and the company have grown on average 13% per year 2010-2019. The company was hit hard by the pandemic and the revenue declined by -22% in 2020. After the decision to transform into a digital customer offer and to push the gas instead of saving costs, the last quarter resulted in the strongest Q3 ever from BTS. In numbers, Q3’21 delivered a 38% y-o-y growth, or like BTS would compare it, a 4% growth in comparison with Q3’19. BTS is more than ready for a virtual and physical delivery in the future and business momentum is strong.
The market has changed and BTS stands stronger than ever
The world changed with the outbreak of the pandemic in 2020, forcing companies to find new ways of doing their business. New strategies have been set for many companies to be able to adapt to the new normal. This have now resulted in a strong market for implementing these strategies, something Mr. Ekelund confirms. Moreover, although the competitive landscape has changed during the pandemic, with a slightly larger competition from tech companies, Mr. Ekelund mentions the different customer base as a reason for why BTS are still quite alone in their niche, targeting the 2,000 largest companies in the world. BTS with its premium and global customers and the average customer lifetime of ~7 years makes it hard for new tech companies to break through in this area. Mr. Ekelund also confirms that we can expect to continue to see 1-2 acquisitions per year going forward, with the contribution of either 1) capability products, 2) new geographical areas or 3) strengthening of the customer base.
Currently trading at 22.3x ‘22e EV/EBITA
In total, we forecast a sales growth of 32.5% in full year 2021, followed by 14.5% growth in 2022. On our estimates, BTS is trading at 22.3x 2022e EV/EBITA.
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