GBO.L - Globo PLC

[Simple Investor]

This company seems like an interesting opportunity.  It is very cheap but I am not sure why.  I did see an article that insinuated possible paper profits and no cash flow.  The company provides enterprise mobility management solutions and software as a service (not my expertise).  The company appears to be headquartered in UK now but ties to Greece may be the reason it trades low.  Just guessing? 

 

Market Cap of 196m €

EV of 151m maybe up to 170m€

EBITDA may range around 50m for the year. 

 

The company continues to issue shares for growth (not a fan of).  Hence lower EPS growth. They derived 15% of revenue from Greece and 32% of rev from Eastern Europe.  North America is around 4% but about 6 times higher than the previous 6 month period. 

 

6 month -Financial highlights from Sept. 2014

• Revenue up 45% to €46.5 million (H1 2013: €32.0 million)

• EBITDA increased 23% to €22.0 million (H1 2013: €17.9 million1)

• Profit before tax up 11% to €16.1 million (H1 2013: €14.5 million)

• Earnings per share increased 5% to €0.043 (H1 2013: €0.041)

• EBITDA Cash Conversion Ratio3 of 83% (H1 2013: 15%)

• Net cash position of €46.0 million as at 30 June 2014 (H1 2013: €10.8 million)

 

I haven’t seen much writing about this company.  I am curious to see if anyone knows other info on why a growth company is trading at such a discount.  Thanks. 

 

http://www.globoplc.com/en-GB/results-and-presentations/