Eurowag posts solid set of full-year results

(Sharecast News) - Road transportation payments specialist WAG Payment Solutions, which trades as Eurowag, delivered a strong set of financial and operational results for the year ended 31 December on Tuesday, marked by consistent double-digit revenue growth, robust cash generation, and a significant reduction in net leverage. The FTSE 250 company said total net revenue rose 14% to €292.5m, supported by a 13.6% increase in payment solutions revenue to €166.9m, driven in part by a 50.2% surge in toll revenues and a 10.8% rise in active payment trucks.

Mobility solutions revenue grew 14.6% to €125.6m, underpinned by expansion in fleet and work time management services, and the full-year impact of the Inelo acquisition.

Adjusted EBITDA increased 12% to €121.7m, with an EBITDA margin of 41.6%, while adjusted cash EBITDA rose 23.2% to €88.7m, reflecting strong underlying cash generation.

However, adjusted profit before tax declined to €46.3m from €56.7m due to higher finance costs and amortisation of intangibles.

Statutory profit before tax improved to €11.7m, reversing a €39.3m loss the prior year, which had been impacted by a goodwill impairment.

The company reduced net debt to €275.5m from €316.8m, bringing net leverage down to 2.3 times adjusted EBITDA, back within its target range of 1.5 to 2.5 times.

In light of the stronger cash position, the board said it would propose a special dividend of 3p per share, equivalent to around €25m, subject to shareholder approval at the annual general meeting in May.

Eurowag said it also continued to invest in its integrated technology offering, launching its new Eurowag Office platform in the final quarter of the year.

Total capital expenditure amounted to €46m, including €35m in capitalised research and development.

A phased rollout of the platform had started, with live-user testing underway involving existing fleet management and navigation customers.

"Eurowag has had another strong year with double-digit net revenue growth, strong profitability and outperformance in cash generation," said founder and chief executive officer Martin Vohánka.

"This has all been possible against a challenging macroeconomic backdrop, which makes me even more proud of what the teams have achieved.

"Looking forward, I remain confident in the future growth prospects for the business and delivering our 2025 guidance."

Vohánka said the continued rollout of the company's new integrated platform would bring a number of benefits for customers, and also accelerate the firm's ability to cross-sell products and unlock further business efficiencies.

"This in turn drives our ability to deliver positive returns to our shareholders."

At 0850 GMT, shares in WAG Payment Solutions were up 1.35% at 60p.

Reporting by Josh White for Sharecast.com.