Aankondiging • Apr 02
KPS AG, Annual General Meeting, May 15, 2026 KPS AG, Annual General Meeting, May 15, 2026, at 11:00 W. Europe Standard Time. New Risk • Mar 13
New major risk - Revenue and earnings growth Earnings have declined by 69% 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 Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (22% average weekly change). Earnings have declined by 69% per year over the past 5 years. Minor Risk Market cap is less than US$100m (€15.4m market cap, or US$17.6m). Buy Or Sell Opportunity • Feb 06
Now 29% undervalued Over the last 90 days, the stock has risen 4.5% to €0.48. The fair value is estimated to be €0.69, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.0% over the last 3 years. Meanwhile, the company became loss making. New Risk • Nov 24
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2025. 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 (1.5x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Latest financial reports are more than 6 months old (reported March 2025 fiscal period end). Market cap is less than US$100m (€17.0m market cap, or US$19.6m). Reported Earnings • May 09
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: €33.1m (down 11% from 2Q 2024). Net income: €72.0k (up €2.32m from 2Q 2024). Profit margin: 0.2% (up from net loss in 2Q 2024). Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Aankondiging • Apr 24
KPS AG, Annual General Meeting, May 30, 2025 KPS AG, Annual General Meeting, May 30, 2025, at 11:00 W. Europe Standard Time. New Risk • Feb 17
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.05x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.05x net interest cover). Share price has been highly volatile over the past 3 months (20% average weekly change). Minor Risk Market cap is less than US$100m (€37.1m market cap, or US$38.9m). Reported Earnings • Feb 01
Full year 2024 earnings released: €0.57 loss per share (vs €0.033 loss in FY 2023) Full year 2024 results: €0.57 loss per share (further deteriorated from €0.033 loss in FY 2023). Revenue: €149.4m (down 16% from FY 2023). Net loss: €23.4m (loss widened €22.1m from FY 2023). Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. New Risk • Jul 29
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.9% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (3.9% operating cash flow to total debt). Shares are highly illiquid. Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 231% Minor Risks Shareholders have been diluted in the past year (10.0% increase in shares outstanding). Market cap is less than US$100m (€39.0m market cap, or US$42.4m). Reported Earnings • Jul 27
Third quarter 2024 earnings released: EPS: €0.05 (vs €0.02 loss in 3Q 2023) Third quarter 2024 results: EPS: €0.05 (up from €0.02 loss in 3Q 2023). Revenue: €35.1m (down 17% from 3Q 2023). Net income: €2.23m (up €2.91m from 3Q 2023). Profit margin: 6.4% (up from net loss in 3Q 2023). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the IT industry in the United Kingdom. Aankondiging • Mar 14
KPS AG has completed a Follow-on Equity Offering in the amount of €4.30238 million. KPS AG has completed a Follow-on Equity Offering in the amount of €4.30238 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 3,741,200
Price\Range: €1.15
Transaction Features: Subsequent Direct Listing New Risk • Jan 31
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 Risk Shares are highly illiquid. Minor Risks High level of debt (57% net debt to equity). Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.4% net profit margin). Market cap is less than US$100m (€47.5m market cap, or US$51.5m). Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €1.22, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 23x in the IT industry in the United Kingdom. Total loss to shareholders of 75% over the past three years. Aankondiging • Jan 18
KPS AG (XTRA:KSC) acquired Graphyte. KPS AG (XTRA:KSC) acquired Graphyte on January 17, 2023. KPS AG (XTRA:KSC) completed the acquisition of Graphyte on January 17, 2023. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment deteriorated over the past week After last week's 17% share price decline to €3.15, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 21x in the IT industry in the United Kingdom. Reported Earnings • Jan 22
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: €0.23 (up from €0.22 in FY 2020). Revenue: €158.9m (down 5.3% from FY 2020). Net income: €8.73m (up 7.2% from FY 2020). Profit margin: 5.5% (up from 4.9% in FY 2020). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.0%. Over the next year, revenue is forecast to grow 7.7%, compared to a 14% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 13% per year. Reported Earnings • May 20
Second quarter 2021 earnings released: EPS €0.082 (vs €0.078 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: €41.5m (down 18% from 2Q 2020). Net income: €3.28m (up 6.2% from 2Q 2020). Profit margin: 7.9% (up from 6.1% in 2Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 16% per year. Upcoming Dividend • May 17
Upcoming dividend of €0.17 per share Eligible shareholders must have bought the stock before 24 May 2021. Payment date: 27 May 2021. Trailing yield: 3.3%. Lower than top quartile of British dividend payers (4.1%). Higher than average of industry peers (1.9%). Reported Earnings • Feb 18
First quarter 2021 earnings released: EPS €0.06 (vs €0.08 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: €36.3m (down 19% from 1Q 2020). Net income: €2.10m (down 25% from 1Q 2020). Profit margin: 5.8% (down from 6.3% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year and the company’s share price has also fallen by 20% per year. Reported Earnings • Feb 13
First quarter 2021 earnings released: EPS €0.06 (vs €0.08 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: €36.3m (down 19% from 1Q 2020). Net income: €2.10m (down 25% from 1Q 2020). Profit margin: 5.8% (down from 6.3% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 18% per year. Analyst Estimate Surprise Post Earnings • Jan 24
Revenue misses expectations Revenue missed analyst estimates by 4.4%. Over the next year, revenue is forecast to grow 4.3%, compared to a 8.9% growth forecast for the IT industry in the United Kingdom. Reported Earnings • Jan 23
Full year 2020 earnings released: EPS €0.22 The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: €168.8m (down 7.8% from FY 2019). Net income: €8.14m (down 33% from FY 2019). Profit margin: 4.8% (down from 6.7% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year whereas the company’s share price has fallen by 26% per year. Analyst Estimate Surprise Post Earnings • Jan 23
Revenue misses expectations Revenue missed analyst estimates by 4.4%. Over the next year, revenue is forecast to grow 3.7%, compared to a 8.9% growth forecast for the IT industry in the United Kingdom.