Original-Research: Readcrest Capital AG (von NuWays AG): BUY - T-Online

The issuer is solely responsible for the content of this research. The

invitation to conclude certain stock exchange transactions.

Deleveraging delivered, bolt-ons fuel the UK; Chg.

performance, which was slightly below our expectations. Here are the key

H1 sales came in at EUR 65.3m (eNuW: EUR 67.5m), up 1.6% yoy and entirely

attributable to the UK home care business. In constant currencies, growth

should have been in the ballpark of 4.5-5% (eNuW). While weekly care hours

remained stable at 88.9k (vs 88.8k prior year), sales were driven mainly by

two factors. One is price, as local billing rates increased 4.7% on average

on 1st April. The second is M&A: While the two November'25 bolt-ons

Ltd contributed from 27th March (eNuW: EUR 0.6m effect). On the other hand, we

entity as well as the re-tendering of the Manchester contract. GHSC had

an extra-care scheme to a competitor.

Group EBITDA came in at EUR 3.4m (eNuW: EUR 4.0m), down from EUR 5.5m in H1'25.

(EUR 0.6m) as well as the Readcrest holding expenses (EUR 1.2m). On a l-f-l

basis and at constant currencies, UK home care EBITDA (EUR 5.2m reported,

-5.3% yoy) declined by around 15% yoy (eNuW), as M&A contributions of some EUR

0.7m only partially offset lower organic care hours and the April wage

disposal of the care home portfolio. Proceeds were used to repay £ 30m of

bank debt, which together with the reclassification of EUR 16.4m of the

mandatory convertible into equity, cut net debt from EUR 180.1m at year-end to

22m, including c. EUR 12m from GHSC and c. EUR 4m running costs from RCS and the

holding as well as >= EUR 14m one-offs from creditor waivers. Should the

to at least EUR 41.2m. Both one-offs, however, remain conditional on payments

timing. On the operating side, the implied H2 GHSC EBITDA of c. EUR 6.8m looks

achievable given last year's H2 of EUR 7.0m and the three bolt-ons closed in

Q3 (EUR 2.5m FY-run-rate, eNuW). Moreover, H2 has, unlike H1, the full effect

operating business as achievable. Importantly, the c. EUR 12m excludes the

three bolt-ons closed in Q3 (c. £ 2.4m post-synergy run-rate, eNuW), which

only contribute pro rata in FY26 and hence come on top. Management also

reiterated its adjusted group EBITDA guidance of EUR 8-9m.

while Schwerin is set to start in Q1/27. Our take: While individual sales

single buyer to absorbing 399 units in Halle at a time of rising rates.

adding attractive optionality to the case.

Reiterate BUY with an unchanged PT of EUR 2.80 based on SOTP.

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