| Description |
Imtech’s 11H1 results lagged street expectations. Most striking was the disappointing contribution from acquisitions made in 2010. A part of the difference could be explained by non-recurring costs which were not communicated well with the financial markets. In general the contribution from acquisitions in year 1 is less than the expected EBITA contribution. With still EUR1.5bn of revenues from future acquisitions management of Imtech needs to make sure that it provides full disclosure on the EBITA contribution of these acquisitions. On top of that we believe the risks of growth through acquisitions are underestimated by the financial analysts when applying a WACC of only 8.8% for future acquisitions. We even wonder if Imtech itself should not carry a higher WACC with its increased risk profile taken into account the takeovers it still has to make. Taking all critical remarks into consideration and applying a higher WACC to reflect the higher risk profile, what is a fair value for Imtech? |
110901 Imtech | the difference between pre- and post-calculation