25 April 2024
W.A.G payment solutions
plc
Trading
Update
Continued momentum into 2024,
in-line with expectations
W.A.G payment solutions plc
("Eurowag", or the "Group") a leading pan-European integrated
payments and mobility platform focused on the commercial road
transportation industry ("CRT"), today announces its trading update
for the three-month period ending 31 March 2024.
Martin Vohánka, CEO and Founder said:
"We delivered double-digit organic
revenue growth in the first quarter despite the continued
macroeconomic headwinds across Europe. Our sales teams continue to
focus on cross-selling our products across our customer base as
well as acquiring new customers. The development of our digital
platform continues at pace, as we prepare for the soft launch in Q4
this year. This platform will accelerate our business growth and
drive greater efficiencies for our customers. We are encouraged by
the solid progress demonstrated at the start of the year and
re-iterate our near and medium-term guidance."
Q1
financial highlights:
·
Net revenue grew 31.0% to €68.4 million, supported
by sustained organic growth and the contribution from our Inelo
acquisition.
·
Organic net revenue grew 10.0% to €55.2
million1 in-line with management
expectations:
o Payment solutions organic revenues grew 8.2%1 (Q4
23: 7.6%), supported by 10.8% growth in active trucks and
increasing Toll revenue due to implementation of CO2
charges in Germany and Austria, which was offset by continued
macroeconomic headwinds across Europe and continued lower
kilometres driven in the market.
o Mobility solutions organic revenues grew 14.7%1 (Q4
23: 9.8%) as a result of effective cross-selling.
·
Net revenue for the last twelve months grew 34.3%
to €272.7 million, with organic growth of
11.2%1.
|
|
Net revenue
(€m)
|
Year-on-year
growth (%)
|
Organic
year-on-year
growth (%)
|
|
|
Q1 2024
|
Q1 2023
|
|
|
|
Payment solutions
|
39.2
|
35.9
|
9.2%
|
8.2%
|
|
Mobility solutions
|
29.1
|
16.2
|
79.3%
|
14.7%
|
|
Total
|
68.4
|
52.2
|
31.0%
|
10.0%
|
|
|
Net revenue
(€m)
|
Year-on-year
Growth (%)
|
Organic
year-on-year
growth (%)
|
|
|
12 months to 31 March
2024
|
12 months to 31 March
2023
|
|
|
|
Payment solutions
|
150.3
|
140.7
|
6.8%
|
6.4%
|
|
Mobility solutions
|
122.4
|
62.4
|
96.1%
|
22.4%
|
|
Total
|
272.7
|
203.1
|
34.3%
|
11.2%
|
Note: 1.
Organic growth represents Group growth excluding Inelo and related
synergies.
Q1
operational highlights
·
Revenue growth continues to be supported by strong
non-financial KPI performance:
o Average number of payment solutions active customers rose from
17,843 in Q1 2023 to 19,232 in Q1 2024, representing 7.8%
year-on-year growth.
o Average number of payment solutions active trucks rose from
91,288 in Q1 2023 to 101,183 in Q1 2024, representing 10.8%
year-on-year growth. The quarter-on-quarter growth was a result of
a focus by the sales teams on new acquisitions across our markets,
building a customer base to support our move to a greater
subscription model in the future.
Q1
strategic highlights
·
Implemented the next phase of the new ERP
system in January.
· Added
new acceptance points to our network in Poland, Germany and Spain,
taking our total acceptance points to c.13,500 across Europe. We
also started to operate in Croatia in January, having rolled out
our acceptance points during Q4 2023.
·
Rolled out mobile payments to c.600
acceptance points in Germany and Poland in the quarter, taking
total acceptance points to c.1,400 across Europe.
· Successfully
launched European Electric Toll Services in Slovakia, with almost
2,000 new registered vehicles in the first week after
launch.
M&A updates
·
Today, Eurowag announced the restructuring of the
option for the remaining 19% equity shareholding in FireTMS.
Eurowag will buy 7.6% of the equity shareholding for €3.4 million,
paid in two equal instalments in April and July 2024. The final
11.4% equity shareholding remains subject to an option mechanism
exercisable in H1 2026 and the price is subject to certain
financial and KPI targets met by FireTMS.
Outlook and guidance
· Near and medium-term
guidance reconfirmed: FY 2024 adjusted EBITDA margins are expected
to remain in-line with FY 2023, at
around 43%, and grow over the medium-term, and the net debt to
adjusted EBITDA ratio is expected to be
moderately above the target range of 1.5x to 2.5x at FY 2024, with
a priority to return within the range in FY
2025.
ENQUIRIES
Eurowag
Carla Bloom
Head of Investor Relations and
Communications
+44 (0) 789 109 4542
investors@eurowag.com
Powerscourt
Justin Griffiths, Gilly
Lock
IR
and international media
+44 (0)20 7250 1446
eurowag@powerscourt-group.com
About Eurowag
Eurowag was founded in 1995 and is a
leading technology company and an important partner to Europe's
commercial road transport industry, with a purpose to make it
clean, fair and efficient. Eurowag enables trucking companies to
successfully transition to a low carbon, digital future by
harnessing all mission critical data, insights and payment and
financing transactions into a single ecosystem and connects their
operations seamless before a journey, on the road and
post-delivery. http://www.eurowag.com