Ailleron's Above-Average Margins and Double-Digit Earnings Growth Prospects
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Ailleron
Above-average margins, prospects for double-digit earnings growth Financial outlook. After a very good second quarter in which we were surprised by the level of Software Mind's margins despite global sector weakness, we are raising our operating profit forecasts by 12% this year and 7% next year.
2024 will be the first year without the burden of project costs for Pekao in Fintech and development costs for LiveBank, which is already a product so innovative that no further investment expenditure is required, only a greater focus on sales.
The full impact of the valorisation of customer tariffs, which was not fully implemented in all contracts at the beginning of the year, will then be visible in the results. We forecast net profit for the parent company's shareholders to rise to PLN 25m in 2024 and PLN 31m in 2025, implying a P/E of 7-8x, which we consider very attractive for a growth company in this sector.
