EQS-News: Reporting of Preliminary Results 2024 and 2025 Outlook

CHAPTERS Group AG, the home for mission critical digital solutions, today announced preliminary financial results for financial year 2024.

2024 highlights:

Revenues:  Pro-formaⁱ revenues 2024 were c. €124m, up 42% compared to €87.2m in 2023ⁱⁱ. On an organic basisⁱⁱⁱ, revenues grew c. 11%

EBITDA: Pro-formaⁱ adjusted operating EBITDA was c. €30m, up 22% compared to €24.5m in 2023ⁱⁱ. On an organic basisⁱⁱⁱ, EBITDA grew c. 1%.

Outlook: CHAPTERS expects organic growthⁱⁱⁱ in the low teens for both revenue and adjusted operating EBITDA for 2025

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Jan Mohr, CEO:

“Our key theme in 2024 was instilling a culture of organic growth in our businesses.  Today, I’m proud to announce our 2025 outlook for low teens organic revenue and EBITDA growth. 

The time was right for the increased focus on organic growth and our team has built the muscle to continue to execute on it.  Led by our COO Marc Maurer, we developed and rolled out the Manuscript Method as our way to drive organic growth at CHAPTERS.

A key driver for our recent growth has been to focus on what we are best at, digital solutions. Digital solutions now comprise c. 90% of adjusted EBITDA. We expect these businesses to grow even further in importance going forward, driven in particular by strong growth in public sector vertical market software.

We are expecting strong inorganic growth in 2025 as our M&A pipeline is full and we expect to add several high-quality businesses to the group. In fact, 2025 will be another big step towards building the best home for mission critical digital solutions.”

Marlene Carl, CFO:

“We are looking back on a year of consistent execution throughout CHAPTERS. We met our guidance range for organic adjusted EBITDA growth while organic revenue growth came in above expectations. With the continued scaling of the group, we continue to optimize our financing structure. Right at the start of the 2025 fiscal year, we closed our first junior debt facility in the amount of €40m, optimizing the financing mix for some of our longest tenured software companies. Today, we also announce a repurchase offer and subsequent redemption of our perpetual bond to further simplify our balance sheet. Driven by our track record of consistent free cash-flow generation, we expect to further improve our debt financing capabilities in the future.”

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Preliminary Key Figures as of December 31, 2024

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The company expects to publish the consolidated and separate financial statements in May 2025. The provisional figures are subject to the audit of the financial statements and the approval of the annual financial statements prepared in accordance with the provisions of the German Commercial Code by the Supervisory Board.

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ⁱ CHAPTERS defines pro-forma as combined full year numbers based on the group structure as of the December 31, 2024, reporting date. Companies in which CHAPTERS holds a non-controlling interest are not included. Fiscal results will only consider the numbers for the time a company was part of the group.

ⁱⁱ For previous periods, CHAPTERS reported pro-forma numbers including results of companies, in which CHAPTERS holds a non-controlling interest. For 2023, revenue contribution of these companies was €5.2m, EBITDA adj. was €0.6m (see page 31 on the combined management report).

ⁱⁱⁱ CHAPTERS defines organic growth as full year results for a financial year based on the relevant group structure as of June 30 of that financial year – compared to full year results for the same group for the previous financial year: For organic growth in 2024, the full year results for 2024 based on the group structure as of June 30, 2024 are compared to full year results for 2023 for the same group.

^iv With the remainder held primarily by management teams of our platform subsidiaries.

^v Including all marketable securities (at fair value, including shares held in Software Circle), perpetual bond and investments in minorities stakes (at cost).

^vi Including a preliminary parent company net income of c. €3.7m. Parent company operating costs before share-based compensation were c. €2.9m.