SFS Group 2024 numbers
Portfolio company SFS published 2024 numbers last week. Intitially, the stock reacted very negatively, dropping ~-9% only to recover fully by the time of writing:
Top line was flat, bottom line suffered a little because of higher interest rate.
On a segment basis, the engineered components did quite well, whereas esp. the distribution segment had some issues:
On the other hand, if Europe really ramps up manufacturing for defence, especially the distribution segment will see significant activity as all the big defence manufacturers are clients.
On a positive side, Free Cash flow was very strong and they managed to reduce net debt significantly:
Overall, I do think that SFS has done quite well despite the overall challenging background. So no need to chnage anything here.
Jensen Group 2024 results
Also last week, Jensen published their 2024 results. In essence, the results were great, from the top to bottom:
With 4,31 EUR EPS and EBIT of 51 mn EUR, Jensen actually did slightly better than I expected. This is what I wrote a few weeks ago:
The only little disappointment was that free cash flow did not reach my assumed 40 mn EUR as receivables increased by ~20 mn and working capital in % of sales increased slightly.
Finaly, order intake has been very good and accellerating into Q4 which should support further growth in 2025. I am very happy with these results, the stock is still cheap at the current level. I might add to the position going forward.