Weak FY24 // Clouded outlook and tense liquidity situation; chg

Sales of € 3.1m (-25% yoy) stemming mostly from 13 financed projects (vs 13 in FY23 vs eNuW: 12) with an aggregated financed volume of € 22m (-44% yoy) came in below expectations (eNuW: € 27m) due to the ongoing overall weak industry and sentiment burdened by still high construction costs, restrictive bank lending and not exactly low financing costs compared to real estate prices. Positively, H2 sales seem to have stabilized on levels of € 1.5m (vs € 1.6m in H1), indicating that the through is reached.

EBITDA came in at negative € 4.8m (vs € -3.7m in FY23), which is even below our estimate of € -4.1m, mainly due to softer topline and higher than anticipated costs related to customer claims that are driving other OPEX (€ 4.5m vs € 4.0m in FY23). Personnel expenses declined slightly to € 3.2m (-12% yoy vs eNuW: € 3.6m).

Apart from that, EVDI has diversified its business in FY24 by offering new products that are rather contrary to real-estate investments such as deposit accounts, renewable energy projects, ETFs as well as holistic wealth management. This initiated diversification should reduce the dependency from the very cyclical real-estate project business, stabilizing the income and margins going forward.

Tense liquidity situation. As the cash burn of the company is high, EVDI is at the current stage dependent on further external capital injections. First injections were provided end of March (€ 0.5m). Furthermore, an LOI with the main shareholder VdZ Berlin and another investor about another € 2.35m was signed mid of April. With that, EVDI should be able to continue its operations for the time being. Still, the current turmoil around the main shareholder put this LOI at question in our view. Taking this into account we see an immanent risk of insolvency.

On the back of the weak operating results and the clouded outlook for the industry, paired with the tense liquidity situation and the pending risks that customer claims cannot be solved soon, we take EVDI under review. Signs of operating improvement, further capital injections and customer claims that are off the table would change our view.