In addition to the write-down, the Spanish operation had an operational EBITDA loss of NOK 6m. In other words, if Spain had been break-even, adj. EBITDA had been NOK 32 (23% higher), indicating a run-rate EBITDA for the full year of NOK 128m. This shows the significant delta effect on earnings when things begin to normalize in Spain and the company reaches break-even. In this scenario, the company would be trading at 11x EV/EBIT. For comparison we have NOK 123m in EBITDA for 2022e and NOK 98m excl. Labels.
Strong order backlog and significant M&A firepower
During Q2, several new orders in Norway with a total value of ~NOK 300 have been announced that will be delivered over the next 2-5 years. This should help contribute to solid growth from H2’21e. Following the divestment of Cash Security and Labels, Strongpoint will also have a strong cash position of NOK 200-250m that it can deploy for M&A.
Research 20210714
