WAG Payment Solutions upbeat despite profit slide

5th Sep 2024 09:06

(Sharecast News) - WAG Payment Solutions insisted trading remained on track on Thursday, despite a sharp fall in half-year profits.

The freight services fintech, which trades as Eurowag, reported an 18% increase in total net revenue in the six months to 30 June, to €141m. Adjusted earnings before interest, tax, depreciation and amortisation also jumped 18%, to €59.4m.

However, pre-tax profits fell 51% to €4.2m from €8.5m a year previously.

The firm, a fleet management software and fuel card payments provider, attributed the slide to the cost of servicing increased debt levels, as well as higher amortisation.

It also flagged macroeconomic challenges across the commercial road transport (CRT) industry, which was impacting loads and kilometres driven.

However, looking forward Eurowag said it remained "well-positioned" and was trading in-line with the expectations.

It also noted "some signs" of economic recovery, with the load spot market in particular improving, and left its near and medium-term guidance unchanged.

Martin Vohanka, founder and chief executive, said: "We continue to deliver strong double-digit growth, despite the economic headwinds impacting the CRT industry across Europe.

"Our resolute focus on providing mission-critical products to our customers has allowed us to create a highly resilient business model, giving us the capacity to enhance our services, scale and innovate."

Eurowag, which was founded in 1995, expects net revenue growth in the mid-teens in the near and medium-term. Adjusted EBITDA margins are forecast to grow in the medium term, once recent acquisitions are integrated.

As at 0900 BST, shares in the FTSE 250 firm were up 2% at 74.2p.