The technology provider that underpins billing for key services like electricity and gas has sat on our hitlist for the Emerging Companies Portfolio since February, and we continue to like the story. At their recent FY23 results, they reported revenue of $313.4m which was at the top end of company guidance, dropping to underlying EBITDA of $99.5m implying a margin of 31.9%.
Key to the result was a strong 2H and the business looks to be gaining momentum. This is reflected in better-than-expected FY24 guidance with revenue tipped to grow 5-7% with margins in excess of 30%. While this is not a hyper-growth company, it is a solid technology business powering essential services and trading on an undemanding multiple of 14.4x FY24 cash EBITDA estimates.
- We continue to like Hansen and the recent result gives us greater confidence in this view – we just need to make room for it in the portfolio!
MM remains bullish HSN ~$5.40
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