Extraordinary information - Significant growth expected in Gloster's first half-year report

Extraordinary information

Gloster Infokommunikációs Nyilvánosan Működő Részvénytársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A. A/2. building; hereinafter referred to as the "Company", "Gloster") is a public limited company incorporated under Hungarian law in accordance with the applicable laws, in particular the Capital Market Act CXX.

Law ("Tpt.") and the General Business Rules of the Budapest Stock Exchange, the the following information to the Honoured Investors.

Significant growth expected in Gloster's first half-year report

Management expects significant growth in the second half of the year

Compared to the same period last year, Gloster's management expects a 35-45% higher revenue of around HUF 5.8-6.6 billion and a half-year EBITDA of between HUF 490-610 million in the first half-year report 2024 to be published in September.

This good performance was supported by the continued solid performance of the Cloud business, and the successful translation of closed projects in the Software Development business into new long-term contracts, with a steadily growing international sales presence.

The Company's performance is also expected to be further enhanced by the successful completion of the final stages of several previous acquisitions in the first half of 2024, and the completion of the first stage of the merger with Sytemfarmer Zrt[1], which will shift the focus to integration and the fulfilment of joint business opportunities.

Although the Systems Integration business is expected to underperform at the half-year level, the business is at a milestone, where management expects to start delivering several significant projects in the second half of 2024.

An encouraging sign for the year-end results is that Gloster started 2024 with a 170% higher open order book[2] of a record HUF 4134 million and opened the second quarter of 2024 with a 137% higher open order book[3] of HUF 3470 million, which is expected to accelerate in the second half of the year. Further slight improvement is also expected from the first results of the Gloster Level Up programme[4] in the second half of 2024.

Consolidated unaudited half-yearly data in millions of HUF. The IFRS translation of the results is in progress and has no material impact on the financial results.

Management is also encouraging about the growth prospects for the second half of the year, with two previously announced software development orders worth a total of €15.7 million[5] being one of the main drivers.[5].

In addition to traditional migration projects, the Cloud business is expected to grow both in security and BizApps services in the second half of 2024. On the security side, these projects will mainly consist of Intune and Autopilot implementations, and on the BizApps side, the delivery of custom solutions based on Power Platform.

In the International Software Development business, management expects to see a steady flow of new orders from all existing customers in 2024. With the direct sales presence in Germany and Sweden steadily strengthening and the sales team further expanded in the UK, Gloster expects new customers and significant new orders from the strengthened teams by 2025.

Improving half-year management data and the projects foreseen by the end of the year should provide a solid financial basis for a profitable close to 2024, and should also provide cover for the first dividend payment planned for 2026, which could set the stage for a return to an upward trend in the share price.

A Gloster shares are followed by ERSTE Investment Ltd., target price 1183 HUF, buy with a buy recommendation.

About Gloster

Gloster is a broad-spectrum international IT services provider listed in the standard category of BSE. In its more than 20-year history, it has evolved from a hardware garage company into a software-focused international medium-sized company. Thanks to its intensive growth strategy, Gloster has completed eleven transactions since 2018 and expanded its activities into systems integration, cloud solutions and international software development services. The group currently employs a team of nearly 350 people and, according to its audited consolidated accounts for 2023, had revenues of HUF 10.3 billion, adjusted EBITDA of HUF 976 million and a profit after tax of HUF 414 million.

This information note has been produced by Gloster Infocommunications Plc. (registered office: 2142 Nagytarcsa, Csonka János u. 1/a). factual information and reasonable information based on reasonable calculations conclusions, which are based on reasonable and reasoned information and which may be relied upon by persons entitled to do so under the applicable obligations under the applicable legal provisions. Present (Act CXX of 2001 on the Capital Market), § 5 (1) paragraph 5(5)(9) of the Stock Exchange Act does not constitute an "investment recommendation" and is not subject to the provisions of the Bszt. (on investment firms and commodity exchange service providers and on the and the rules governing the activities they may carry out) Article 4(2)(8) does not include investment analysis, financial instruments, exchange-traded products or their issuers or other information, the disclosure of which would in itself or in any other way, may influence the investor to decide for himself or or other person's money or other assets from the effects of the capital market, in whole or in part on the influence of the market. Gloster Infocommunications Plc. and its representatives do not assume any responsibility for any conclusions drawn from the information in this prospectus for any investment decisions based on the conclusions of the information contained herein, their adverse legal consequences, or financial losses.

Nagytarcsa, 2024. september 3.  

Gloster Infocommunications Plc.

More information:

dr. Eszter Bassola

Investors relations officer

bassola.eszter@gloster.hu

[1] Hungary's largest domestically-owned Microsoft cloud services partner is created https://gloster.hu/uploads/befektetoknek/kozzetetelek/rendkivuli-tajekoztatasok/Letrejon-Magyarorszag-legnagyobb-hazai-tulajdonu-Microsoft-felhoszolgaltato-partnercege-65cef84f1e67d.pdf

[2] GLOSTER'S OPEN ORDER BOOK AT AN UNPRECEDENTED RECORD LEVEL https://gloster.hu/uploads/befektetoknek/kozzetetelek/rendkivuli-tajekoztatasok/Gloster-2023Q4-Order-Backlog-65cb92d210841.pdf

[3] Gloster at another peak open orders https://gloster.hu/uploads/befektetoknek/kozzetetelek/rendkivuli-tajekoztatasok/Gloster-Order-Backlog-2024Q1-661907579c549.pdf

[4]200 million a year business development programme launched at Gloster https://gloster.hu/uploads/befektetoknek/kozzetetel/rendkivuli_tajekoztatasok/28982-Rendkivuli-tajekoztatas_-Evi-200-millios-vallalatfejlesztesi-program-indul-a-Glosterben.pdf

[5] Gloster wins EUR 15 million industrial software development contract from BMW https://gloster.hu/uploads/befektetoknek/kozzetetelek/rendkivuli-tajekoztatasok/Rendkivuli-tajekoztatas-15-millio-EUR-os-megbizast-kapott-a-Gloster-a-BMW-tol-6672898577f31.pdf