Transformational year complete - Ready for next steps

2025 as a transformational year. To recap, in September 2025 learnd SE divested 50.5% of shares in its subsidiary learnd Atlas Ltd. to learnd Arrow Ltd., a founder-owned entity. This sizeable MBO, along with further transformational efforts turned learnd SE into a leaner holding structure with a strengthened balance sheet, including improvements in its liquidity and equity position. Following completion of the transformation, in our view learnd SE is now positioned to gradually pursue additional equity investments, leveraging its ability to recognize use cases for cutting-edge technology, expertise in operational building maintenance its network in the UK and Ireland and its access to growth capital to drive value creation.

Total comprehensive profit rose from £ 4.3m to £ 21m, mainly due to the positive one-off effect of the MBO-proceeds leading to a gain on sale of discontinued operations of £ 23.2m. Excluding this positive one-off and fair value gains in warrants, the company remained operationally loss-making during the period. In fact, the equity-accounted investee did not yet deliver a profit, delivering a share of loss of € 0.6m net of tax instead. Furthermore, the transition was accompanied by higher than usual administrative expenses (+83% yoy), of which £ 3.1m was linked to accelerated vesting of share options to be considered a one-off.

Starting into FY26e with a strengthened balance sheet. Cash increased from £ 3.4m to £ 6.1m, allowing for a dividend to add to shareholder returns. At the same time the equity ratio notably improved from -3.9% to 76.1% on the reporting date, as total liabilities reduced from £ 48m to £ 6.3m. This was achieved partially through deconsolidation and partially as MBO-proceeds were used to eliminate outstanding loans. Next to operational profitability, we view this strengthening as a clear cornerstone towards raising further capital to fund growth.

Its main holding continued its growth path and improved operationally, even as the learnd UK & Ireland Group fell short of growth expectations amidst the transition with revenue of € 69.1m (eNuW: € 75m) rising by only 8% yoy. As expected, the transition was accompanied by margin compression but still reached approx. 11% (-1.3pp yoy; eNuW: 10%), proving resilient. The adj. EBITDA rose by 5% yoy to € 7.7m (eNuW: € 7.5m) slightly ahead of expectations.

Significant events following the reporting date include the dividend distribution totaling € 4.1m or € 0.32 per dividend-bearing share and the waiving of a last shareholder loan, making the company debt-free as of April 2026. The equity ratio should now be above 90% (eNuW).

Ideally positioned for a fresh start in 2026. We anticipate further steps in a gradual transformation of learnd SE into an incubator for companies operating in facility management and environmental services. Further portfolio additions are to follow in the mid-term. learnd Atlas Ltd. looks set to raise margins by 1pp per year with scaling and operational improvements. Confirming BUY at a PT of € 4.8, based on a sum-of-the-parts approach, valuing the individual portfoliocompanies.