Gloster's open order book up 70%

Gloster's open order book up 70%
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Gloster closed the third quarter of 2024 with an open order backlog worth HUF 2,584 million, which is 70% higher than in the same period of 2023. This represents a significant average growth rate (CAGR) of 54% in the Order backlog rate for the first half of the year since 2021.

All products and services for which all subsidiaries of the Gloster Group have a valid order but have not yet been delivered to customers are included in the open order backlog. Gloster's open order backlog for the quarter was as follows:

all data in millions of HUF, unaudited, unconsolidated data

Source: Gloster Finance Department

The Company's order backlog increased by 70% from HUF 1,519 million in Q3 2023 to HUF 2,584 million in Q3 2024. The Order backlog includes orders to be fulfilled by Order backlog end Order backlog . However, together with orders carried over to 2025 and orders to be fulfilled beyond the year, it already has more than HUF 5.5 billion in open orders, which provides a strong foundation for our future growth plans.

The system integration business reached a milestone in the first half of the year in terms of service activities (installation, operation, and engineering work). Management expects significant growth in the second half of 2024 compared to the first half, which will open up new opportunities for the business. In addition, high-value, long-term contracts have been signed, further strengthening the stability of the business unit. Changes in the economic environment and new technological trends have created new opportunities, but also brought challenges. However, long-term contracts and a growing number of projects can provide a stable foundation for future growth and innovation. Overall, the results for the third quarter give us reason to be optimistic and reinforce our commitment to continuous development and innovation.

The cloud business segment's open order book is stable compared to the previous period, showing balanced performance in terms of sales. This positive trend reinforces the reliability of the business segment and provides a solid foundation for further growth. Systemfarmer Zrt. has signed a three-year contract worth more than EUR 600,000 with an international energy company that employs 200,000 people in more than 50 countries. We have included the first year of this contract Order backlog our Order backlog .

In the international software development business, we see stable business operations at both Gloster - P92 Informatikai Kft. and Gloster – Minero IT Hungary Kft., and we expect continuous orders from our customers. All of our framework agreements are in force, and we can be sure of continuous orders for this year.

Sony Music has just signed the current development teams for two years in September. The order covers a total of 40 people and is worth approximately HUF 2.5 billion over two years. In line with the renewed BMW and Audi framework agreements this year, the first orders have also started to arrive. We expect a similar order volume from our other customers next year as we had this year. There are also new customers on the horizon, but so far, contracts have only been signed with one or two smaller customers. The work of the international sales teams is expected to yield results next year.

Analyst target prices

Gloster is followed by Erste , an Erste investment service provider. The link to the full analysis and the target price can be found in the table below:

This report shows the quarterly balance of open orders, i.e. orders already contracted at group level but not yet fulfilled, as recorded on September 30, 2024. The quarters referred to in the report are calendar quarters. This statement contains preliminary, unaudited, unconsolidated data.

Upcoming, planned releases

2024 Q4 Order backlog - Second week of January 2025

This prospectus has been prepared by Gloster Infokommunikációs Nyrt. (registered office: 2142 Nagytarcsa, Csonka János u. 1/A. Building A/2.) This prospectus contains only factual information and reasonable conclusions based on reasonable calculations, which have been made public by the persons entitled to do so in accordance with the applicable legal obligations. This prospectus does not constitute an "investment recommendation" within the meaning of Section 5 (1) 9) of the Act on Capital Markets (Act CXX of 2001 on the Capital Market) and Section 4 (2) 8) of the Act on Investment Firms and Commodity Exchange Service Providers and the Rules of Activities They May Perform (Act CXXXVIII of 2007 on Investment Firms and Commodity Exchange Service Providers and the Rules of Activities They May Perform). 4.4.1.2. does not contain any analysis, proposal or other information concerning an investment analysis, a financial instrument, a stock exchange product or its issuer, the disclosure of which, in itself or in any other way, could influence an investor to make his own or another's money or other assets dependent, in whole or in part, on the effects of the capital market. Gloster Infocommunications Plc and its representatives accept no liability for any investment decisions based on the conclusions drawn from the information contained in this prospectus, for any adverse legal consequences thereof or for any financial losses.

Nagytarcsa, October 9, 2024.

More information:

Dr. Adrienn Karlovich-Szabó

Investor Relations Officer

karlovich.szabo.adrienn@gloster.hu