Reported Earnings • Jul 30
First half 2024 earnings released: €0.046 loss per share (vs €0.032 loss in 1H 2023) First half 2024 results: €0.046 loss per share (further deteriorated from €0.032 loss in 1H 2023). Revenue: €5.56m (up 9.3% from 1H 2023). Net loss: €1.60m (loss widened 68% from 1H 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. Chairman & MD Elena Simone was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Apr 16
New major risk - Revenue and earnings growth Earnings have declined by 12% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 12% per year over the past 5 years. Shareholders have been substantially diluted in the past year (250% increase in shares outstanding). Minor Risk Market cap is less than US$100m (€83.2m market cap, or US$88.5m). New Risk • Apr 08
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.8x net interest cover). Shareholders have been substantially diluted in the past year (250% increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Large one-off items impacting financial results. Market cap is less than US$100m (€85.9m market cap, or US$93.2m). New Risk • Mar 31
New major risk - Revenue and earnings growth Earnings have declined by 12% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.6x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 90% Paying a dividend despite having no free cash flows. Earnings have declined by 12% per year over the past 5 years. Shareholders have been substantially diluted in the past year (250% increase in shares outstanding). Minor Risk Market cap is less than US$100m (€85.3m market cap, or US$92.1m). New Risk • Feb 13
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.8x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 90% Cash payout ratio: 203% Shareholders have been substantially diluted in the past year (250% increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Share price has been volatile over the past 3 months (7.3% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (€90.6m market cap, or US$97.6m). New Risk • Jan 25
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 250% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.8x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 90% Cash payout ratio: 203% Shareholders have been substantially diluted in the past year (250% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (€87.0m market cap, or US$94.7m). New Risk • Dec 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.8x net interest cover). Minor Risks Dividend is not well covered by earnings (90% payout ratio). Share price has been volatile over the past 3 months (5.7% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (€27.7m market cap, or US$29.8m). New Risk • Aug 03
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 90% Dividend yield: 5.1% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.8x net interest cover). Minor Risks Dividend is not well covered by earnings (90% payout ratio). Large one-off items impacting financial results. Market cap is less than US$100m (€36.7m market cap, or US$40.2m). Reported Earnings • Aug 03
First half 2023 earnings released: €0.032 loss per share (vs €0.015 profit in 1H 2022) First half 2023 results: €0.032 loss per share (down from €0.015 profit in 1H 2022). Revenue: €5.08m (up 11% from 1H 2022). Net loss: €951.0k (down 312% from profit in 1H 2022). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Upcoming Dividend • May 15
Upcoming dividend of €0.06 per share at 4.6% yield Eligible shareholders must have bought the stock before 22 May 2023. Payment date: 24 May 2023. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 4.6%. Lower than top quartile of Italian dividend payers (5.3%). Higher than average of industry peers (4.1%). Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. Member of the Board of Statutory Auditors Fabiana Flamini was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Aug 01
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down €6.11m from profit in 1H 2021). Profit margin: (down from 134% in 1H 2021). The decrease in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. Upcoming Dividend • May 16
Upcoming dividend of €0.06 per share Eligible shareholders must have bought the stock before 23 May 2022. Payment date: 25 May 2022. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 4.9%. Within top quartile of Italian dividend payers (4.7%). Higher than average of industry peers (3.6%). Reported Earnings • Mar 11
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: €0.14 (up from €0.014 in FY 2020). Revenue: €9.25m (up 3.2% from FY 2020). Net income: €4.36m (up €3.94m from FY 2020). Profit margin: 47% (up from 4.7% in FY 2020). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 09
First half 2021 earnings released: EPS €0.20 (vs €0.001 in 1H 2020) First half 2021 results: Revenue: €4.55m (up 4.4% from 1H 2020). Net income: €6.11m (up €6.09m from 1H 2020). Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 17
Upcoming dividend of €0.06 per share Eligible shareholders must have bought the stock before 24 May 2021. Payment date: 26 May 2021. Trailing yield: 5.2%. Within top quartile of Italian dividend payers (3.8%). Higher than average of industry peers (3.0%). Reported Earnings • Mar 14
Full year 2020 earnings released: EPS €0.014 (vs €0.08 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: €8.96m (down 37% from FY 2019). Net income: €425.0k (down 82% from FY 2019). Profit margin: 4.7% (down from 17% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Dec 16
New 90-day high: €1.01 The company is up 3.0% from its price of €0.98 on 16 September 2020. The Italian market is up 8.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Real Estate industry, which is flat over the same period. Is New 90 Day High Low • Oct 29
New 90-day low: €0.89 The company is down 5.0% from its price of €0.94 on 30 July 2020. The Italian market is down 8.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Real Estate industry, which is down 1.0% over the same period. Is New 90 Day High Low • Sep 29
New 90-day low: €0.90 The company is down 6.0% from its price of €0.95 on 30 June 2020. The Italian market is down 3.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Real Estate industry, which is also down 6.0% over the same period.