Momentum looks solid
Proact delivered an impressive Q4 report, growing sales 40% organically y-o-y, and we are encouraged by the breadth of the growth. For example, the company grew both its system and services sales organically in all four regions (Nordics, UK, West and Central). We see catch up in demand post-pandemic, as well as an improved supply chain that helps Proact to deliver systems at a higher pace. The order backlog was strong and sales were negatively affected a year ago from component shortages. Given the continued positive momentum on orders and outlook for 2023, we are more optimistic about H1'23e organic growth, although we estimate negative organic growth in H2'23e due to tough comps and a somewhat slower market. With a net cash position year-end 2023e, there is ample financial headroom to continue to do bolt-on acquisitions, driving revisions and earnings upwards.
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