mVISE free of bank liabilities going forward

The consortium, which is represented on the Supervisory Board by Stefan Träumer, currently holds c. 2% of the shares in mVISE and has reiterated its intention of increasing their commitment and hereby intensifying their cooperation/involvement.

In our view, this has to be seen as positive news for the company, as it documents the confidence of the consortium in the investment case and the successful transformation (for more detail see our initiation) of mVISE. Moreover, all investors are now on the same side of the table, having eliminated banks out of the equation, which is seen to facilitate future financing and refinancing. Mind you, the company aims to pursue a Buy & Build approach going forward in order to become a serious competitor for larger, mostly anglo saxon competitors like Avaya or Genesis in the DACH region.

Besides this, the company is going to release its FY report in March. After a strong start in the year with an adj. EBITDA of € 0.5m, we expect the company to also show strong figures for H2.

Despite an expected decline of the top-line (eNuW: € 9.4m), which is explained by significant staff reductions in connection with the current efficiency program, EBITDA looks set to increase to € 1.2m, implying a margin of 13.0% (+4.2pp yoy). The strong margin expansion should be mainly driven by the acquisition of opcyc (60% EBITDA margin at € 1.7m sales) as well as significant operational improvements leading to increased utilization rates.

Overall, this is currently not adequately reflected in share price, in our view, given a valuation of 8.9x EV/EBTIDA FY25e (6.7x FY26e).

We hence reiterate BUY with an unchanged€ 1.40 PT based on DCF.