Unifiedpost: Strategic Refocus and Balance Sheet Strength

Unifiedpost Group SA (UPG), a leading provider of integrated business communications solutions, has successfully executed its strategic priorities, including portfolio rationalisation, while improving its balance sheet strength and operational efficiencies. The company's FY 2024 results reflect these necessary adjustments, marking a key turning point in its journey.

Throughout 2024, Unifiedpost executed several strategic divestments of non-core assets, substantially strengthening its financial position while maintaining valuable commercial partnerships. In July, the company completed the divestment of FitekIN/ONEA for €7.2 million and announced the sale of 21 Grams to PostNord Strålfors, which remains subject to regulatory approval from the Swedish Competition Authority. In December, Unifiedpost completed the sale of its Wholesale Identity Access Business to Your.World B.V. for an aggregate equity purchase price projected between €108.4 million and €116.1 million, subject to the realisation of the earn-out condition.

Unifiedpost utilised part of the proceeds from the sale of the Wholesale Identity Access business to reduce its debt obligations to Francisco Partners Credit. Upon completion of the transaction, Unifiedpost repaid a principal amount of €75 million, along with accrued and due interest, bringing the total repayment to €94.8 million. The remaining balance is expected to be paid back within 2025.

Looking ahead, Unifiedpost will continue to evaluate opportunities for divesting non-digital services as part of its strategic focus on core digital offerings and platform development. The company's FY 2024 financial highlights include steady growth in Subscription and Transaction revenue of 8.2% and 9.3% year-over-year, respectively. Meanwhile, other revenue decreased from €18.5 million to €12.5 million, reflecting a higher base effect from one-off deals in Q4 2023.

Unifiedpost's digital service gross margin (including net income from client money) increased by 1.7 percentage points year-over-year to 59.7%. EBITDA (including net income from client money) improved to €-9.2 million from €-11.0 million in FY 2024. The company's cash and cash equivalents at the end of the period amounted to €614.5 million, a decrease of 35.5% compared to the previous year.

Unifiedpost's strategic partnerships have also contributed to its value creation across key markets. The partnership with PostNord Strålfors, announced on July 5, 2024, involved the sale of 21 Grams and the formation of an exclusive strategic partnership to distribute Banqup and B2B digital products to PostNord Strålfors' customer network. This collaboration enables Unifiedpost to grow its core digital services by leveraging PostNord Strålfors' extensive network in the Nordic region.

In conclusion, Unifiedpost's strategic refocus and improved balance sheet strength have positioned the company for future growth and success. By divesting non-core assets, strengthening its balance sheet, and forging strategic partnerships, Unifiedpost has demonstrated its commitment to executing its strategic roadmap and delivering value to its customers, teams, and stakeholders.