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B3 Consulting Group

B3 Consulting Group

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B3 Consulting Group is an IT consulting business with approx. 800 employees in Sweden and Poland. It operates within: Digital innovation, Digital management and Cloud & Technology. The largest segment is Banking & finance, followed by Public sector, Industry and TMT. The financial targets are sales of SEK 1.7bn and an EBIT margin of 12% by 2025e, a Net debt/EBITDA ratio below 1.5x and a payout ratio of approx. 67%.

Key risks include a slowdown of the IT market, high employee turnover and wage inflation, increasing competition from IT services brokers and integration risks with respect to acquisitions.

Financials

NOKm 2022 2023e 2024e
Sales 1151 1246 1384
Sales growth (%) 24,6 8,2 11,1
EBITDA 138 159 186
EBITDA margin (%) 12 12,8 13,4
EBIT adj. 138 149 173
EBIT adj. margin (%) 12 12 12,5
Pretax profit 144 153 182
EPS 14,39 15,42 18,26
EPS growth (%) 127,3 7,2 18,4
EPS adj. 14,42 15,42 18,26
DPS 8 8 9
EV/EBITDA (x) 11,8 10 8,3
EV/EBIT adj. (x) 11,8 10,7 8,9
P/E (x) 12,6 11,8 9,9
P/E adj. (x) 12,6 11,8 9,9
EV/sales (x) 1,41 1,28 1,11
FCF yield (%) 9,5 7,7 9,2
Le. adj. FCF yld. (%) 8,8 7,2 8,7
Dividend yield (%) 4,4 4,4 5
Net IB debt/EBITDA (x) 0,1 -0,1 -0,4
Le. adj. ND/EBITDA (x) 0,1 0,3 0,6
NOKm 2022 2023e 2024e
Sales 1151 1246 1384
COGS -139 -154 -165
Gross profit 1012 1092 1218
Other operating items -874 -933 -1032
EBITDA 138 159 186
Depreciation and amortisation 0 -10 -13
of which leasing depreciation 0 -8 -8
EBITA 138 149 173
EO Items 0 0 0
Impairment and PPA amortisation 0 0 0
EBIT 138 149 173
Net financial items -1 4 8
Pretax profit 144 153 182
Tax -29 -32 -37
Net profit 115 122 144
Minority interest 11 13 16
Net profit discontinued 0 0 0
Net profit to shareholders 126 135 160
EPS 14,39 15,42 18,26
EPS adj. 14,42 15,42 18,26
Total extraordinary items after tax 0 0 0
Leasing payments 0 -8 -8
Tax rate (%) 20,3 20,6 20,6
Gross margin (%) 87,9 87,7 88,1
EBITDA margin (%) 12 12,8 13,4
EBITA margin (%) 12 12 12,5
EBIT margin (%) 12 12 12,5
Pre-tax margin (%) 12,5 12,3 13,1
Net margin (%) 10 9,8 10,4
Growth Rates y-o-y N/A N/A N/A
Sales growth (%) 24,6 8,2 11,1
EBITDA growth (%) 95,5 15,5 16,7
EBITA growth (%) 95,5 8,1 16,1
EBIT growth (%) 95 8,3 16,1
Net profit growth (%) 130,3 6,2 18,4
EPS growth (%) 127,3 7,2 18,4
Profitability N/A N/A N/A
ROE (%) 68,3 63,1 60,9
ROE adj. (%) 68,5 63,1 60,9
ROCE (%) 46,8 44,6 45,5
ROCE adj. (%) 46,9 44,6 45,5
ROIC (%) 44,9 47,7 54,1
ROIC adj. (%) 44,9 47,7 54,1
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 138 159 186
EBITDA adj. margin (%) 12 12,8 13,4
EBITDA lease adj. 138 152 178
EBITDA lease adj. margin (%) 12 12,2 12,9
EBITA adj. 138 149 173
EBITA adj. margin (%) 12 12 12,5
EBIT adj. 138 149 173
EBIT adj. margin (%) 12 12 12,5
Pretax profit Adj. 144 153 182
Net profit Adj. 115 122 144
Net profit to shareholders adj. 126 135 160
Net adj. margin (%) 10 9,8 10,4
NOKm 2022 2023e 2024e
EBITDA 138 159 186
Goodwill 211 211 211
Net financial items -1 4 8
Other intangible assets 5 13 22
Paid tax -16 -32 -37
Tangible fixed assets 3 6 8
Non-cash items 20 0 1
Right-of-use asset 62 63 63
Cash flow before change in WC 141 132 158
Total other fixed assets 23 23 23
Change in working capital 11 5 6
Fixed assets 303 316 327
Operating cash flow 152 138 164
Inventories 0 0 0
Capex tangible fixed assets -1 -6 -7
Receivables 201 219 240
Capex intangible fixed assets 0 -9 -10
Other current assets 35 38 42
Acquisitions and Disposals 0 0 0
Cash and liquid assets 83 120 182
Free cash flow 151 123 147
Total assets 623 694 790
Dividend paid -33 -78 -78
Shareholders equity 195 233 292
Share issues and buybacks -50 0 0
Minority 33 39 47
Leasing liability amortisation -12 -8 -8
Total equity 228 272 338
Other non-cash items -23 0 0
Long-term debt 42 42 42
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 26 26 26
Total other long-term liabilities 1 1 1
Short-term debt 33 33 33
Accounts payable 55 60 65
Other current liabilities 240 261 286
Total liabilities and equity 623 694 790
Net IB debt 17 -20 -82
Net IB debt excl. pension debt 17 -20 -82
Net IB debt excl. leasing -9 -46 -107
Capital employed 328 372 438
Capital invested 245 252 257
Working capital -58 -63 -69
EV breakdown N/A N/A N/A
Market cap. diluted (m) 1591 1591 1591
Net IB debt adj. 17 -20 -82
Market value of minority 33 39 47
Reversal of shares and participations -17 -17 -17
Reversal of conv. debt assumed equity N/A N/A N/A
EV 1624 1592 1539
Total assets turnover (%) 194,7 189,2 186,5
Working capital/sales (%) -4,6 -4,9 -4,8
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 7,3 -7,5 -24,1
Net debt / market cap (%) 1 -1,3 -5,1
Equity ratio (%) 36,6 39,2 42,8
Net IB debt adj. / equity (%) 7,3 -7,5 -24,1
Current ratio 0,98 1,07 1,21
EBITDA/net interest 172,5 37 22
Net IB debt/EBITDA (x) 0,1 -0,1 -0,4
Net IB debt/EBITDA lease adj. (x) -0,1 -0,3 -0,6
Interest coverage 48,3 58,2 68,7
NOKm 2022 2023e 2024e
Shares outstanding adj. 9 9 9
Diluted shares adj. 9 9 9
EPS 14,39 15,42 18,26
Dividend per share 8 8 9
EPS adj. 14,42 15,42 18,26
BVPS 22,25 26,63 33,29
BVPS adj. -2,34 1,08 6,71
Net IB debt/share 1,89 -2,31 -9,3
Share price 181,5 181,5 181,5
Market cap. (m) 1591 1591 1591
Valuation N/A N/A N/A
P/E (x) 12,6 11,8 9,9
EV/sales (x) 1,41 1,28 1,11
EV/EBITDA (x) 11,8 10 8,3
EV/EBITA (x) 11,8 10,7 8,9
EV/EBIT (x) 11,8 10,7 8,9
Dividend yield (%) 4,4 4,4 5
FCF yield (%) 9,5 7,7 9,2
Le. adj. FCF yld. (%) 8,8 7,2 8,7
P/BVPS (x) 8,16 6,81 5,45
P/BVPS adj. (x) -102,12 69,73 19,6
P/E adj. (x) 12,6 11,8 9,9
EV/EBITDA adj. (x) 11,8 10 8,3
EV/EBITA adj. (x) 11,8 10,7 8,9
EV/EBIT adj. (x) 11,8 10,7 8,9
EV/CE (x) 5 4,3 3,5
Investment ratios N/A N/A N/A
Capex/sales (%) 0,1 1,2 1,2
Capex/depreciation N/A 6,1 3,3
Capex tangibles / tangible fixed assets 20 98,9 84,4
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intang / def. intang N/A N/A N/A
Depreciation on tangibles / tangibles 0 38,62 61,27

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Main shareholders -

Main shareholders Share capital % Voting shares % Verified
Sverre Bjerkeli and companies 17.7 % 17.7 % 24 Feb 2023
Protector Forsikring ASA 15.1 % 15.1 % 24 Feb 2023
Sven Uthorn 7.4 % 7.4 % 24 Feb 2023
Claes Wiberg 5.5 % 5.5 % 24 Feb 2023
Herald Investment Management 3.7 % 3.7 % 31 Dec 2021
B3 Consulting Group AB 3.4 % 3.4 % 24 Feb 2023
Fondsfinans Kapitalforvaltning 2.3 % 2.3 % 28 Feb 2023
Tommy Sarenbrant 2.3 % 2.3 % 27 Jan 2023
Avanza Pension 1.8 % 1.8 % 24 Feb 2023
Helena Lagman 1.2 % 1.2 % 28 Dec 2022
Source: Holdings by Modular Finance AB