EQS-News: Interim Report for the first half of 2024 published

Today, the company published its 2024 half-year interim report:

As of June 30, 2024, 46 operating companies were part of the group. Driven by continued inorganic growth, revenue for the first half of 2024 amounted to Euro 58.4m, an increase of +34% compared to the comparable period in 2023. For the first half of 2024, the EBITDA (adjusted) of operating companies increased by 23% year over year to Euro 13.7m.

Marlene Carl, CFO, comments: “In the first half of 2024, five additional operating companies became part of the group, all from the Vertical Market Software (VMS) segment. That segment accounted for c. 65% of the operating EBITDA in the first half of 2024 (compared to c. 50% for the same period in 2023). In addition to the continued inorganic growth and evolution of our corporate structure, we continue to see organic growth in the group.”

Since June 30, 2024, CHAPTERS Group AG founded an additional platform in the VMS space and increased its stake in the existing VMS platform Ookam from 80% to 100%. Four operating VMS-companies became part of the group. In addition, ENTRO Group, a subsidiary of NGC Nachfolgekapital building an integrated group in the field of technical services for industrial access, security, and fire protection systems was spun-off.

Jan Mohr, CEO, comments: “The first half of 2024 was marked by further investment in the VMS space. Firstly, we increased our stake in Software Circle to 29.9%. Secondly, we established Altamount, our first thematic platform in the governance, risk and compliance software space. In addition, we made first steps establishing Manuscript Method, primarily aimed at increasing the organic growth profile of our businesses. The second half of 2024 started with the further evolution of our corporate structure and dynamic growth with four VMS businesses joining CHAPTERS since June 30.”

As of October 18, 45 operating companies were part of the group that achieved revenues of Euro 107m and an adjusted EBITDA of c. Euro 28m for the full year 2023. For 2024, we expect that revenue and EBTIDA of those companies will develop stable to slightly positive. The share of EBITDA attributable to CHAPTERS Group AG amounts to c. 78%.

Based on the current group and financing structure, the net financial debt (including seller loans and shareholder loans by minority shareholders) at the level of the group companies including scheduled repayments until end of year is expected to amount to c. Euro 50m. The shareholder loans provided by CHAPTERS Group AG (including accrued interest) to the platform companies at year end are expected to amount to c. Euro 135m.

The amount invested in minority interests is around Euro 20.7m (excluding the investment in Software Circle plc). The current market value of the 29.9% of shares held in Software Circle amounts to c. Euro 32.7m. Liquid funds, including the securities portfolio at CHAPTERS Group AG level, amounts to c. Euro 78.4m as of October 18, 2024, the outstanding amount of the perpetual bond is around Euro 15.5m.