Million Dance, Projectile and Technology Group

Written by the Apostle Menthos

Euroadvisors (ESYMB) yesterday announced its impressive results for 2023, leaving by the press release strong indications of maximizing its volumes and profitability with more durable but also broader qualitative characteristics capable of pushing the share price towards €2 or +60% from current price levels.

However, be careful, because in addition to the financials, a trade deal is also taking place in the recent period, which could cause the stock price to rise significantly. There have already been interesting articles in the press indicating the strong restructuring shake-up that has taken place in recent months in the consulting services industry under the weight of a backlog of projects worth hundreds of millions of euros. I'll explain what I mean below.

But first I must justify why Euroadvisors shares have so much room to grow.

the Firstly More importantly is the fact that the group currently leads the stock exchange in terms of EBITDA margin. I don't think there is any other listed company that offers a 54% margin on its turnover. In fact, this ratio reached 40% in 2022 and the group has worked hard to increase it, exceeding even the most positive management expectations. So in 2023, a 7.3% increase compared to 2022 revenues of €5,071 million takes EBITDA profitability to €2.7 million from €1.9 million which corresponds to an impressive increase of +42%. At the same time, since management's announcement, the estimated EBITDA for 2024-2025 is “locked in” at these high levels, and this is without taking into account the impact of new projects that will be secured.

the secondly It comes from a net profit margin of an impressive 42%. And in this very important indicator that shows the “health” of sales and the speed of development of the company, Euroconsultants stands alone at the top of the stock market at the same time that some “active” investors are chasing the purchase of shares of caterpillars and become butterflies before they die and revive their capital once and for all. Forever. The Group thus achieved a significant rise in net profits by +32% to €2,091 million from €1,578 million in 2022. In other words, just under half of the income goes directly to shareholders' coffers.

the third An element whose importance one can easily understand if one goes and sticks to the first and second is the backlog of projects announced by the group which exceeds 12 million euros (!), an amount that is more than double the 2023 turnover and without even new projects being claimed where it is large enough. are taken into consideration. So, by simple calculations with the €12 million already on hand and the net profit margin, we arrive at approximately €5 million which, as I said before, goes directly to the treasury, which naturally increases the strength of the group.

the a fourth It is that euro advisors have reduced their borrowing to the point that if they put in the cash they have, they would come out with negative net debt. Total borrowing from 2,833 million euros in 2022 therefore decreased at the end of 2023 to 1,043 million euros, which relates only to lease obligations. In the first half of 2024, the situation will now have completely reversed in favor of the fund's bottom line, prompting management to propose an advance dividend distribution to the association.

Fifth It is owned by the group and is one of the most emblematic office buildings in eastern Thessaloniki with a total area of ​​3,365 square metres. The value of the property is therefore entered in the group's books at €5.1 million, but according to the valuations the group has received from buyers, it is well above €6 million and rising. The distinctive feature is that the forced delay that existed due to the known problems that Greek real estate had been carrying for years in the proceedings was ultimately to the advantage of the group as the sale price took on a higher value. Therefore, if the property is sold, based on the above positive data, Euroconsultants will have a cash flow that will hopefully reach €10 million (!). So what is required for the strategic plan that the management has put in front of it to achieve the rapid growth of the group. Speaking of which, even the €2 I mentioned at the beginning of the article will be small when the whole plan unfolds.

the VI It is to the benefit of the shareholders and to the honor of the management that, in relation to the other groups, not only did the disposal and management expenses increase, but instead reduced them by 20% to €495,000 from €625,000.

the Seventh It's about what the group actually does. Euroconsultants, the other hears and his mind immediately goes to “consulting company”. Um, but no. The title may give rise to some small and narrow narrowing down of the business, but the reality is very different from what the title shows and what is actually being indulged in, transformed and achieved on a global scale which opens up huge potential for growth from the footprint and positive impact left on the world.

Euroadvisors therefore belong to the technology and innovation trading ecosystem. More than 60% of the company's annual sales volume is related to the innovation sector, technology transfer and technological applications related to energy and climate change.

Therefore, it is used by international organizations and governments to develop innovation ecosystems and infrastructure from Latin America to the Gulf countries, including Europe, of course.

Examples of such projects include the development of an Innovation Zone in the field of creative business and filmmaking on behalf of the Government of the Dominican Republic, and supporting the Government of Andorra in its strategic transformation into a country in the Innovation Zone with a focus on fintech, tourism technology and healthtech.

Supporting the development and attracting multinational companies to the Oxagon Technology Park in the new city of NEOM in the Kingdom of Saudi Arabia. The development of technology parks in Bucharest and Cluj, as well as technology centers in Turkey, are just some of the international projects in the field of innovation where the Group has international recognition in this field, with its regular cooperation with the International Association of Technology Parks (IASP).

But also in Greece, in addition to its important services to the Greek state, the company is next to very important projects in the field of technology and innovation, such as the development of the fourth generation technology park Thess Intec, and the participation with other large companies and research centers in the Competence Center for Industry 4.0, i4by design. Euroadvisors coordinates the Greek Urban Mobility Center of the European Institute of Innovation and Technology (EIT) and supports cities' adoption of sustainable, creative and green technologies and solutions developed by the local innovation ecosystem and its start-ups.

the eighth It is now a matter of analyzing the chart as it shows that the stock has now made a very strong push around EUR 1.175 and is heading towards the EUR 1.74 area which it has had as resistance for a decade. The long-term goal is to raise the share to the region where it also recorded the second-largest transaction volume in the last 20 years, to €2.25. The long-term formation that can also be seen on the quarterly price chart is clearly bullish, with a bullish movement mood. As for indicators that analyze trading volumes on a weekly basis, the word “aggregation” is a bit much.

the ninth The element that is the icing on the cake and can make a radical change in the collection has something to do with what I mentioned at the beginning of the article. So be careful, the sector in which Euroconsultants is active has been ablaze with hundreds of millions of euros that seem to be surfacing from projects up to 2030. So this dance of millions brings a historic restructuring in the sector with the companies involved opening the wallet and pursuing… Other companies in order to achieve strong volume expansion and subsequent strong growth by driving strategic acquisitions.

So, there are currently three main Greek players. Planet, DBC Diadikasia, and Euroconsultants. Global companies McKinsey and Accenture, which have offices in Greece, are also on the chessboard. So there is actually some friction between companies where one of them has a big advantage. It is listed on the Greek Stock Exchange. Therefore, according to information from some activists in this field, one of them is very interested in entering the stock exchange through Euroadvisors for strong development purposes. In fact, if you read the group's press release on the 2023 results, there is a paragraph at the end that states that the management is conducting, among other things, exploratory discussions with the aim of working with companies with high added value. I mean, I mean.

* Apostolos Manthos is responsible for technical analysis and investment strategy