Strong growth in line with IPO guidance – FY 2021

• Net energy and services¹ sales up by 19.1% at €153.1m, with organic growth¹ of 17.1% year-on-year
• Payment solutions¹ segment up by 20.2% at €113.1m and mobility solutions¹ segment up by 15.9% at €40.0m
• Adjusted EBITDA¹ up by 18.9% at €69.7m resulting in adjusted EBITDA margin¹ at 45.5%
• Strong progress on transformational capital expenditure¹ plan with €23.3m spent
• Net cash¹ position of €61.7m as at 31 December 2021 providing for significant leverage headroom to take advantage of strategic opportunities

Growing scale and network within a high quality payments-oriented business model and highly diversified revenue base underpinned strong net energy and services sales growth.

• Average active payment solutions customers¹ up by 13.9% at 15,020
• Average active payment solutions trucks¹ up by 13.4% at 82,640
• Payment solutions transactions¹ up by 11.7% at 32.5m
• Net revenue retention¹ for 2017-2021 over 110%

Key statutory financials	2021	2020	YoY %
Revenue from contracts with customers (€m)	1 646.1	1 253.0	31.4%
Profit before tax (€m)	17.7	28.8	(38.5%)
Basic EPS (cents/share)	1.54	3.76	(59.0%)

 

Alternative performance measures	2021	2020	YoY %
Net energy and services sales (€m)	153.1	128.6	19.1%
Adjusted EBITDA (€m)	69.7	58.6	18.9%
Adjusted basic EPS1 (cents/share)	5.77	4.83	19.5%

 

Operational and strategic highlights

• Listed on the London Stock Exchange, raised €200m in equity capital to support inorganic growth and technology transformation, and improved company profile to attract talent
• Strengthened the management team and established a Board of Directors with UK plc experience
• Completed the acquisition of ADS and commenced customer portfolio integration
• Acquired stakes in KomTeS, Drivitty and Last Mile Solutions, and announced the intended acquisition of WebEye
• Launched mobile payments pilot and enabled payments for charging stations on Sygic GPS Navigation
• Launched EETS operations in Austria and Belgium in 2021, followed by a pilot in Germany in 2022
• Expanded the acceptance network for roadside service payments
• Expanded the Road Lords application for use in the office and on the road, and introduced the Eurowag mobile application for easy access to customer account
• Deployed telematics features for fleet management to the on-board unit for toll payments, with anti-fraud protection for energy payments
• Rolled out digital onboarding and the Automated Credit Approval System
• Offered new supply-chain financing solutions via third parties and hybrid financing for tax refunds
• Introduced methodical approach to ESG, established baseline for reporting and set future goals for carbon reduction, Diversity, Equity, and Inclusion, and employee engagement
• Expanded the indirect sales channel to provide navigation systems to automotive OEMs

Paul Manduca, Independent Non-Executive Director and Chair said:

"I am pleased to be introducing Eurowag's first set of annual results as a company listed on the London Stock Exchange. Despite macro-economic challenges the Group has delivered growth in line with guidance. The Company is in a good position to continue to broaden its technological foundations and capabilities. With its accelerated growth plans, the Company is committed to its mandate from shareholders to make select strategic acquisitions and expand our market offering. Despite the volatile geopolitical situation which may have a negative impact on the European economy, Eurowag continues to be a fast growing, profitable, cash generative business. The Board will continue to monitor the humanitarian tragedy in Ukraine and our thoughts are with the Ukrainian people at this time. "

Martin Vohánka, CEO and Founder said:

"We delivered strong organic growth in 2021 and enter 2022 with clear momentum, and confidence in the business. Eurowag has built a large payments acceptance network in Europe integrated with complementary mobility services putting it at the forefront of digital transformation of the Commercial Road Transportation industry. The shocking act of unprovoked and unjustified aggression from the Russian Federation against Ukraine is unfolding as we publish this report. Following the invasion the Group took immediate steps to comply with sanctions and suspend all services we provided in Russia. Notwithstanding the uncertain operating environment, the management remains focused on strategic priorities, drawing on the strength of our business model and its resilience proven over previous economic cycles."

Outlook

In 2021 we delivered a strong performance with all key financial metrics in line with our mid-term financial guidance. As we move into 2022, we expect to continue to increase penetration in our existing markets supported by effective go-to-market strategies which will be enhanced by our digital sales channel.

Early in the current financial year the Group has delivered growth in line with management expectations, and is focused on executing our strategy investing into technology transformation. We estimate net energy and services sales for Q1 2022 of at least €39m with strong LTM growth at 19% YoY. Q1 2022 growth of 12% YoY has been affected by changing seasonality, resulting in a very strong comparator. We expect our growth rate to accelerate in H2 2022 as comparators soften.

The Group has limited exposure to Russia and Ukraine, which together accounted for less than 0.1% of group net energy and services sales in 2021. We discontinued our payments network in Russia and we continue our operations in Ukraine to the extent supplies are available. Direct impact of discontinued or disrupted operations is immaterial to the Group's revenues.

Current trading is demonstrating the resilience of our business despite headwinds such as continuing Covid-related supply chain disruptions, occasional fuel shortages in some regions of Eastern Europe caused by the war in Ukraine, and the price cap on retail fuel sales in Hungary. Eurowag has been able to respond pro-actively to emerging risks and opportunities given our strong pan-European network, long-standing relationships with suppliers, the mission-critical nature of products and services we provide to our customers, and management with experience proven throughout the cycle.

Based on current trading, and assuming no worsening of the current environment, our expectations for 2022 are unchanged, and we anticipate delivering results in line with our mid-term financial guidance. However, the economic outlook in our key regions is uncertain and the management continues to monitor and evaluate the potential impact of the Russian invasion of Ukraine on the out-turn for the full year.

Please see full announcement and management presentation here.