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Allgon

Allgon

Manufacturer of industrial radio remote control solutions

Allgon is a world-leading manufacturer of radio remote control solutions for industrial production with customers in the material handling, construction and transport sectors. It develops, manufactures and supplies solutions for industrial radio control to customers around the world. The company also has a long history of working with wireless communication. In recent years Allgon has focused its business on industrial radio control, in which it is one of the five largest manufacturers globally after the acquisition of Tele Radio in 2018, adding 220 employees and SEK 250m in sales to the group.

Allgon has decided to focus its efforts on the segment for industrial radio control solutions, leading to the acquisition of Tele Radio. As a result, Allgon is looking for new homes for its subsidiaries in the Connectivity segment. By streamlining its operations, Allgon wants to gain more exposure to the underlying market for radio remote control solutions, potentially boosting its organic growth and earnings. Also, M&A is possible, as the market for radio remote controllers is highly fragmented with a diverse range of manufacturers around the world.

Allgon acquired Tele Radio in Q3 2018 and management will focus on integrating it into the Allgon group in 2019. However, implementing a relatively large acquisition carries risks in terms of delays, realising synergies and managing foreign subsidiaries. Also, Allgon is sensitive to macroeconomic developments so a downturn in the macro economy could hurt its financial performance. Finally, Allgon operates in a highly technical niche market with highly qualified staff. Potential employees can therefore be hard to find and quite costly to hire.

SEKm 2020 2021e 2022e
Sales 513 553 639
Sales growth (%) -10,6 7,8 15,6
EBITDA 86 98 127
EBITDA margin (%) 16,7 17,7 19,8
EBIT adj 41 72 102
EBIT adj margin (%) 7,9 13 15,9
Pretax profit 5 48 78
EPS rep -0,18 0,57 0,97
EPS growth (%) -123,4 418,8 70,6
EPS adj 0,02 0,57 0,97
DPS 0 0 0
EV/EBITDA (x) 11,3 9,4 6,7
EV/EBIT adj (x) 23,9 12,8 8,4
P/E (x) -76,1 23,9 14
P/E adj (x) 619,9 23,9 14
EV/sales (x) 1,9 1,7 1,3
FCF yield (%) 4 6,5 9,1
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 2,5 1,7 0,8
N/A N/A N/A
SEKm 2020 2021e 2022e
Sales 513 553 639
COGS -141 -145 -163
Gross profit 372 408 476
Other operating items -287 -310 -349
EBITDA 86 98 127
Depreciation on tangibles -20 -8 -7
Depreciation on intangibles -29 -12 -17
EBITA 29 72 102
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 29 72 102
Other financial items 0 0 0
Net financial items -25 -24 -24
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 5 48 78
Tax -14 -12 -19
Net profit -9 36 58
Minority interest -1 -4 -4
Net profit discontinued 0 0 0
Net profit to shareholders -10 32 54
EPS -0,18 0,57 0,97
EPS Adj 0,02 0,57 0,97
Total extraordinary items after tax -11,2 0 0
Tax rate (%) -293 -25 -25
Gross margin (%) 72,6 73,8 74,4
EBITDA margin (%) 16,7 17,7 19,8
EBITA margin (%) 5,7 13 15,9
EBIT margin (%) 5,7 13 15,9
Pretax margin (%) 0,9 8,6 12,1
Net margin (%) -1,7 6,5 9,1
Growth rates Y/Y 2020 2021 2022
Sales growth (%) -10,6 7,8 15,6
EBITDA growth (%) -11 14 29,6
EBIT growth (%) -54,6 144,6 41,8
Net profit growth (%) -119,1 498,8 62,7
EPS growth (%) -123,4 418,8 70,6
Profitability 2020 2021 2022
ROE (%) -3,3 10,7 16
ROE Adj (%) 0,4 10,7 16
ROCE (%) 4,7 11,5 15,2
ROCE Adj(%) 6,5 11,5 15,2
ROIC (%) -9,9 10 14,5
ROIC Adj (%) -13,7 10 14,5
Adj earnings numbers 2020 2021 2022
EBITDA Adj 97 98 127
EBITDA Adj margin (%) 18,9 17,7 19,8
EBITA Adj 41 72 102
EBITA Adj margin (%) 7,9 13 15,9
EBIT Adj 41 72 102
EBIT Adj margin (%) 7,9 13 15,9
Pretax profit Adj 16 48 78
Net profit Adj 2 36 58
Net profit to shareholders Adj 1 32 54
Net Adj margin (%) 0,4 6,5 9,1
N/A N/A N/A
SEKm 2020 2021e 2022e
EBITDA 86 98 127
Net financial items -25 -24 -24
Paid tax -14 -12 -19
Non-cash items 17 0 0
Cash flow before change in WC 64 62 83
Change in WC -18 -8 -10
Operating cash flow 46 54 73
CAPEX tangible fixed assets -4 -3 -3
CAPEX intangible fixed assets -4 -1 -1
Acquisitions and disposals -8 0 0
Free cash flow 31 50 69
Dividend paid -1 0 0
Share issues and buybacks 0 0 0
Other non cash items -23 0 -7
Decrease in net IB debt 8 51 63
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 300 300 300
Indefinite intangible assets 0 0 0
Definite intangible assets 48 37 22
Tangible fixed assets 44 39 35
Other fixed assets 39 39 39
Fixed assets 441 418 397
Inventories 103 111 128
Receivables 103 111 128
Other current assets 0 0 0
Cash and liquid assets 99 150 212
Total assets 745 789 865
Shareholders equity 280 312 366
Minority 13 17 21
Total equity 293 329 387
Long-term debt 281 281 281
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 9 9 9
Other long-term liabilities 27 27 27
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) 72,9 49,6 25,9
Net debt / market cap (%) 45,5 21,5 13,2
Equity ratio (%) 39,4 41,7 44,8
Net IB debt adj. / equity (%) 72,9 49,6 25,9
Current ratio (%) 264,1 301,1 333,4
EBITDA / net interest (%) 347,3 407,2 527,8
Net IB debt / EBITDA (%) 249,6 167 79,3
Interest cover (%) 118,8 298,9 423,7
Short-term debt 13 13 13
Accounts payable 103 111 128
Other current liabilities 0 0 0
Total liabilities and equity 745 789 865
Net IB debt 214 163 100
Net IB debt excl. pension debt 214 163 100
Capital invested 544 529 525
Working capital 103 111 128
EV breakdown 2020 2021 2022
Market cap. diluted (m) 759 759 759
Net IB debt Adj 214 163 100
Market value of minority 0 0 0
Reversal of shares and participations -6 -6 -6
Reversal of conv. debt assumed equity 0 0 0
EV 967 917 854
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 65,6 72,1 77,3
Capital invested turnover (%) 90 103,1 121,4
Capital employed turnover (%) 81,7 88,7 95,3
Inventories / sales (%) 20,6 19,3 18,6
Customer advances / sales (%) 0 0 0
Payables / sales (%) 22,9 19,3 18,6
Working capital / sales (%) 18,3 19,3 18,6
N/A N/A N/A
SEKm 2020 2021e 2022e
Shares outstanding adj. 56 56 56
Fully diluted shares Adj 56 56 56
EPS -0,18 0,57 0,97
Dividend per share Adj 0 0 0
EPS Adj 0,02 0,57 0,97
BVPS 4,98 5,55 6,51
BVPS Adj -1,22 -0,46 0,79
Net IB debt / share 3,8 2,9 1,8
Share price 8,35 13,5 13,5
Market cap. (m) 470 759 759
Valuation 2020 2021 2022
P/E -76,1 23,9 14
EV/sales 1,89 1,66 1,34
EV/EBITDA 11,3 9,4 6,7
EV/EBITA 33 12,8 8,4
EV/EBIT 33 12,8 8,4
Dividend yield (%) 0 0 0
FCF yield (%) 4 6,5 9,1
P/BVPS 2,71 2,43 2,07
P/BVPS Adj -11,1 -29,56 17,13
P/E Adj 619,9 23,9 14
EV/EBITDA Adj 10 9,4 6,7
EV/EBITA Adj 23,9 12,8 8,4
EV/EBIT Adj 23,9 12,8 8,4
EV/cap. employed 1,6 1,4 1,2
Investment ratios 2020 2021 2022
Capex / sales 1,5 0,7 0,7
Capex / depreciation 16,1 20,5 17,8
Capex tangibles / tangible fixed assets 8,6 7,7 8,6
Capex intangibles / definite intangibles 8,2 3 5,9
Depreciation on intangibles / definite intangibles 59,2 32 78,1
Depreciation on tangibles / tangibles 44,8 20,5 20
N/A N/A N/A

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Media

Allgon - Company presentation with CEO Johan Hårdén
Allgon - Company presentation with CEO Johan Hårdén & CFO Sten Hildemar

Main shareholders - Allgon

Main shareholders Share capital % Voting shares % Verified
Verdane Capital 32.7 % 32.7 % 27 Aug 2020
Bure Equity 11.4 % 11.4 % 31 Dec 2020
Tibia Konsult AB 10.2 % 10.2 % 31 Dec 2020
Bertil Görling 4.2 % 4.2 % 31 Dec 2020
Ola Samelius 2.5 % 2.5 % 31 Dec 2020
Nordnet Pensionsförsäkring 2.4 % 2.4 % 31 Dec 2020
Avanza Pension 2.3 % 2.3 % 31 Dec 2020
Jan Robert Pärsson 1.7 % 1.7 % 31 Dec 2020
AB Jier 1.7 % 1.7 % 31 Dec 2020
Elvind LCE AB 1.5 % 1.5 % 31 Dec 2020
Source: Holdings by Modular Finance AB

Insider list - Allgon

Name Quantity Code Date
Anna Stiwne - 2 000 SELL 23 Dec 2020
Joakim Berlin - 6 011 SELL 14 Dec 2020
Per Johan Hårdén + 847 BUY 15 May 2020
Anna Stålenbring + 10 000 BUY 14 May 2020
Anna Stiwne + 339 BUY 27 Mar 2020
Anna Stiwne + 5 000 BUY 27 Mar 2020
Anna Stiwne + 3 000 BUY 25 Mar 2020
Anna Stiwne + 1 661 BUY 25 Mar 2020
Anna Stiwne + 3 000 BUY 19 Mar 2020
Per Johan Hårdén + 4 000 BUY 18 Mar 2020

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