Pluxee (PLXFP; NR, BBB+; S) {PLX FP Equity} 1H results (ending February)

Strong results & guidance; BS flushed with cash, M&A likely in near-future.

• €593m in revenue at +24% organic growth yoy and recurring EBITDA at €201m at a margin of 33.9% (up +90bps).
• Capex was €68m/11.5% of sales which is up but still left healthy recurring FCF of €228m.
• BS is squared away at a net cash position of €1.1b - that's on €1.8b in cash & eqv's & €500m in financial assets vs. €1.2b in gross borrowings including lease liabilities.
• Debt is made up nearly entirely of the €1.1b of Euro lines issued in March for spin-off; has fully paid down the bridge loan.
• Guidance raised: organic revenue growth of +15-17% (from low double digits), recurring EBITDA margin of 35%+ (from 34.5%+). Medium-term unch at low double digit organic growth for FY25 & 26 and 70%+ cash conversion (FCF to EBITDA) in FY24-26.
• 3Q results come on 3rd July.

Background on co; Pluxee was a high-margin division of {SW FP Equity} making up 27% of operating profit & was spun-off earlier this year. It generates most of its revenue (70%+) from Employee Benefits division that offers staff perks including food and meal vouches/cards. It is considered number 2 player in the industry behind Edenred (NR; A- Stable) {EDEN FP Equity}. Revenue is from client & merchant commissions & float (interest) revenue.