Invigor’s Condat set to deliver strongest ever result for FY2017

By Trevor Hoey. Published at Oct 10, 2017, in Technology

Leading big data solutions company Invigor Group (ASX:IVO) has provided an update regarding its wholly-owned Berlin-based software solutions business, Condat AG (Condat).

The business is currently on target to deliver its strongest ever financial result in FY2017.
The forward outlook also appears promising based on its workbook at the beginning of October.

The group had booked orders combined with contracts being finalised with a value of more than $2.7 million; these comprised new contracts and contract extensions for customers across Europe.

Revenue of $7.6 million is forecast in FY2017, up from $7 million in the previous financial year. A large percentage of the anticipated full year income flows from recurring revenue-generating contracts that have high retention rates and scope for renewal at increased values given the potential to provide add-on services.

However, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.

Condat’s significant proportion of annualised revenues should be viewed favourably by investors as it provides earnings predictability.

Margins strengthen to deliver EBITDA in excess of $1 million

Condat’s margins have increased significantly and the group is forecast to deliver a 115 per cent increase in EBITDA to circa $1.1 million, up from $512,000 in FY2016.

Management noted that the strong financial performance reflects Condat’s prominent position as an established industry player and leading vendor of IT-based smart media solutions, together with the increased deployment of its Skyware Workforce Management software solution.

Invigor solutions

Customers include broadcasters, media companies, content distributors and infrastructure operators across Europe.

Commenting on the division’s performance, IVO’s Chief Executive Gary Cohen said, “Condat continues to deliver very strong growth as part of Invigor, which is clearly evident by the forecast EBITDA performance for this financial year, greatly improved earnings margins, solid revenue growth, and the strengthening sales pipeline”.

There is also scope to accelerate growth and on that note Cohen said that the company was assessing ways to capitalise on Condat’s well-established European presence. He also noted that there was the likelihood of new contract wins and extensions from the group’s operations in Australia and Asia which should be formalised in the near term.

Based on the forecast revenue and EBITDA numbers it would appear that the Condat business is generating margins of circa 15 per cent. Based on the collective value of new orders booked and pending contract awards of $2.7 million this would equate to EBITDA of approximately $400,000.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.