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  • Writer's pictureGuillermo Serrano

Substrate AI: the build-up of an AI powerhouse

SAI.MC November 20, 2023
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Substrate AI continues to acquire new business with which to accelerate its growth potential, backed by the power of its proprietary Artificial Intelligence algorithms.


Since our 24th January 2023 Research Note, Substrate AI has announced 4 new acquisitions for a combined price tag of €14 million (all paid in Ordinary and B shares). They come to reinforce existing AI, Medtech, HR Tech and AgroTech verticals with growth and cost synergies.


We now estimate 2024 Turnover and EBITDA (cash) of €14.6 (vs €8.0) million and €1.2 (vs €0.2) million.


1H23 results showed an increase of 44% in Turnover to €1.8 million and and Ebitda (cash) loss of €0.8 million (vs a loss of €1.2 million in 1H22). With recent acquisitions and improving margins trends, we expect 2023 to finish with a Turnover of €5.5 million and an EBITDA (cash) loss of €2.4 million.


Substrate AI has raised €5.3 million through Convertible Bonds (all converted into Ordinary Shares) between 2022 and 2023. A further €1 million (into B shares) has been raised through loan conversions.


Substrate AI maintains a strong financial position with financial debts of €2.2 million (56% long-term) and a cash position of €1 million.


We maintain our BUY recommendation and we introduce a new price target of €1.00 (vs €1.35) per share, as an adjustment for the new share issues. Our valuation rests on our very high expectations for future sales and profit growth, discounted by a WACC of 14%.

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