Australian (ASX) Stock Market Forum

HSN - Hansen Technologies

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Software player Hansen Technologies is up 15 per cent to a 52-week high of $4.89 per share in morning trade after it upgraded its full year revenue guidance to between $316 million to $326 million on the back of a service deal with Telefonica Germany GMBH. It said it now expects EBITDA margins for the full year to climb to between 37 per cent to 39 per cent, versus prior guidance between 32 per cent to 35 per cent.
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entered into a Master Agreement with Telefónica Germany GmbH & Co. OHG to licence via a prepaid subscription for Hansen’s Cloud Native Communications product suite to support Telefónica’s operations within Germany.
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BGH Capital Pty Ltd bids for Hansen Technologies at $6.50 a share and given the Board's attitude to the proposal/offer (recommend), it would appear that it will likely proceed to completion.

All things considered, it looks to be a good deal for everyone involved.

HSN070621.png
 
Hansen MD and chief executive officer Andrew Hansen, who has nearly a 20 per cent stake in the company, has already signed up to BGH’s camp, committing to vend his stake into the proposed scheme of arrangement and voting against any competing proposals during the exclusivity period.
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locked in and
 
Shares in Hansen Technologies were sold off heavily in ASX trading on Monday following the departure of private equity group BGH Capital from the bidding.

The shares fell 15% to $5.25 at one stage after BGH abandoned its $6.50 a share offer revealed on a non-binding basis in June, and closed the day down more than 9% at $5.60.

BGH withdrew its unsolicited offer after examining Hansen’s accounts and coming to the conclusion it does not want to pay $1.3 billion for the Melbourne-based software company.

“Having conducted extensive due diligence inquiries in relation to the company, BGH has not notified Hansen of any issue which Hansen considers material in the context of Hansen’s current operations and strategy,” HSN told the market on Monday.
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“BGH Capital has advised the company that it continues to see Hansen as a highly effective organisation with an outstanding management team and strong prospects.”
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Hansen’s Chief Executive Officer, Andrew Hansen, said: “The 1H22 result was a great outcome for Hansen
across all key metrics. Once again Hansen is proving its resilience and strong business fundamentals delivering
strong performance in a challenging Global market.”
Revenue
Operating revenue for 1H22 was $148.9m, up 5% on 1H21.
Our global diversification coupled with our two primary verticals has delivered revenues from new
customer delivery, digital transformation, strategic upgrades and specific professional services initiatives.
More and more customers are looking to Hansen as a valued long-term partner as they look to secure
their digital future.
ASX /Media Release
Page | 2
EBITDA
Underlying EBITDA for 1H22 was $54.2m, up 4% on 1H21.
When compared to the prior corresponding period licence revenues are up $5.7m driving an EBITDA margin
of 36.4% for the half.
The cost base delivering this result has otherwise been maintained relative to the underlying revenue profile.
Cash flow and debt
Hansen’s strong business fundamentals continue to deliver free cash flow after lease payments of $35.6m, up
from $28.9m in 1H21.
This strong cash position has allowed us to reduce debt levels by $10.0m in the current period (1H21: $10.3m),
while funding dividends of $9.1m (1H21: $13.0m).
Update on aggregation strategy
A history of successful aggregation is set to continue with our core business providing the people and the
capital to continue to drive this successful strategy. Many opportunities exist and we will continue to be vigilant,
disciplined and focused, only bringing the most value-accretive opportunities into the Hansen fold. Our M&A
team continues to search and screen for all relevant aggregation opportunities and with the world opening
slowly an increased number of opportunities are being assessed.
Dividend
Reflecting our strong cash generation, the Board has declared an interim, partially franked dividend of 7.0 cents
per share, up from 5.0 cents per share in 1H21. The record date for the interim dividend is 25 February 2022
and the payment date is 21 March 2022. The Dividend Reinvestment Plan (DRP) will again be available to
shareholders with no discount. The DRP election cut-off date will be 28 February 2022.
FY22 Outlook
We maintain our previous guidance, with operating revenue expected to be marginally improved over FY21
(excluding Telefonica) with an EBITDA margin trending towards our long-term target.
Long-term financial targets
Given our track record of organic and inorganic growth and visibility in the market, we are maintaining our target
of $500m of revenue by 2025 driven by organic revenue growth and our proven aggregation strategy.
We are targeting long-term EBITDA margins exceeding 30%, driven by an ongoing focus on profitability
and operational leverage as we continue to grow the business.
Investor Briefing
An investor and analysist briefing conference call to discuss the results will be held at 11am (AEDT) on 21
February 2022. Click on the link below to pre-register for the call. You will be sent an invitation and dial in details.


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DYOR

i hold HSN ( 'free-carried ' ) ( bought February 2013 @ 83 cents )

not bad , but then i never expected them to be another Amazon
 
the topic of today’s episode of Buy Hold Sell: Resilient small caps. While these ideas are not complete opposites, the small end of town is certainly where you’ll be more susceptible to stock price capitulation, particularly as the market starts to crunch.

The S&P/ASX Small Ordinaries is down nearly 16% year to date, while its big brother the ASX200 had a more modest -3.6%. Some former small-cap darlings have led the descent, the following among those caught in the selloff:
  • Buy now pay later company Z1P (ASX: Z1P) fell -78.75%
  • Digital payments firm Tyro (ASX: TYR) down -62.94%
  • Online sports betting company Pointsbet Holdings (ASX: PBH) dipped by -62.84%
  • Data centre business Megaport (ASX: MP1) declined -59.54%
If you're in need of capital protection but can't let go of your Growth infatuation just yet, this episode is for you. We hosted small-cap specialists Josh Clark from QVG Capital and Gary Rollo from Montgomery Investment Management, quizzing them on the small caps they believe offer exciting upside after the sell-off while remaining resilient through market cycles...

James Marlay: Okay..... to Hansen Technologies. Pretty boring on the revenue side. Pretty stable. But that might be sexy in this market, buy, hold or sell?

Gary Rollo (BUY): Mate, I've said to you in an earlier video that we're aiming small and missing small, and this is what Hansen is in this market. It's the tech stock for today. Look, it's not a high growth type business, it's got stable industry fundamentals in the sector that it plays in. It's basically giving you market level growth, but in a business model that's a bit better than the market. You've got a founder-led management team where they've given some punchy targets for years, two, three, four, and five in terms of what they think they can get to M&A's got to be part of that story. They're one of the bigger players in their sector. So we think they should be able to repeat recent M&A and get there. So aim small, miss small, decent valuation, 10 times EBITDA, good cash flow. Yeah. That's on our portfolio.

James Marlay: Okay. Josh. Hansen. It's got a little bit of a dividends go along with it. Very grinding, slower growth, buy hold or sell?

Josh Clark (BUY): I think those things are correct. It's a buy for me. So probably at risk of repeating some of Gary's comments, but I think one of the really interesting things about Hansen is it is low growth. It does low single digit type organic revenue growth. But then if you go back over the last decade, it's compounded shareholder returns of over 20%. And if you go back further than that, the growth rate per annum is even higher. So it's an interesting case study. How have they done that with such low revenue growth? And I think the answer is some of the things that Gary's already said, but great cash flow, founder-led business, high returns on capital is one of the important points there. And probably the most important point is the founder-owner management and the discipline capital allocation. So they've been able to go and purchase businesses with sticky revenues, retain those revenues, but then improve that margin profile of those businesses over time. And that's where a lot of the values come from. So if you're in an environment where share prices are falling, that's not necessarily bad for Hansen. They potentially pick up a few bargains, so that's a buy for me.
 
bought into these in February 2013 @ 81.5 cents

key risk here is key person risk and the namesake was willing to sell the company for a price

26 August 2021 Update on BGH Capital acquisition proposal Hansen Technologies (ASX: HSN) (“Hansen”) refers to its previous announcement that the Exclusivity Period under the Process and Exclusivity Deed between Hansen and BGH Capital would end on 25 August 2021. BGH Capital has advised Hansen that it requires further time to complete its due diligence in a limited number of areas as well as to negotiate transaction documentation and complete its financing workstream. Subject to those and certain other matters (including final approval from the BGH Investment Committee), BGH Capital has confirmed to Hansen that it remains willing to proceed with a transaction substantially on the terms of its original proposal, including the $6.50 per share offer price (adjusted for Hansen’s final dividend). Accordingly, Hansen has agreed to extend the Exclusivity Period under the Process and Exclusivity Deed and clause 6.8 of that deed will no longer apply. The Exclusivity Period will now end at 5pm on 10 September 2021. This announcement is authorised by the Independent Board Committee.

7 June 2021 Hansen receives non-binding conditional proposal from BGH Capital at $6.50 per share Hansen Technologies Limited (ASX:HSN) (“Hansen”) announces that it has received an unsolicited, preliminary, conditional and non-binding proposal from BGH Capital Pty Ltd (“BGH Capital”) to acquire 100% of the outstanding shares in Hansen by way of a scheme of arrangement for a price of $6.50 cash per Hansen share (“Proposal”). The Proposal values Hansen at an enterprise value of $1.3 billion and represents a:
• 33% premium to the $4.88 VWAP for the six months prior to Friday, 4 June 2021; and
• 25% premium to the $5.18 closing price at the end of trading on Friday, 4 June 2021.
cash consideration price will be reduced by the value of any dividends or other distributions declared, proposed or paid after date of the offer letter. The price also assumes that Hansen achieves its FY21 earnings guidance. Key conditions to the Proposal are set out in Appendix A. Intention to recommend The Board has considered the Proposal having regard to the prospects for the Company and in the context of maximising value for Hansen shareholders.
It has determined that progressing the Proposal is in the interests of all shareholders.

The Directors of Hansen, other than Andrew Hansen as discussed below, intend to unanimously recommend the Proposal to shareholders (at the offer price of $6.50 cash per Hansen share), subject to the parties entering into a binding scheme implementation deed (“SID”) on terms consistent with the Proposal following completion of BGH Capital’s due diligence. The intended recommendation is also subject to no superior offer being received and an independent expert concluding (and continuing to conclude) that the Proposal is in the best interests of Hansen shareholders. Arrangements with Andrew Hansen Hansen’s Managing Director and CEO, Andrew Hansen, has agreed to work together exclusively with BGH Capital to seek to implement the Proposal pursuant to a co-operation agreement. As part of that co-operation agreement, Andrew Hansen has agreed to procure that with respect to Hansen shares that he owns or controls, those shares will be voted in favour of any scheme of arrangement to effect the Proposal, and will not be voted in favour of (and will be voted against) any competing proposal during an exclusivity period. Andrew Hansen is a director of Othonna Pty Limited which acts as the trustee of the Hansen Property Trust, a substantial shareholder of Hansen. Andrew Hansen has agreed to use his best endeavours (including by exercising all votes in his capacity as a director of Othonna and a beneficiary of the Hansen Property Trust) to promptly procure that Othonna, in respect of all Hansen securities in which it has an interest in, to provide the undertakings that Andrew Hansen has provided to BGH Capital under the co-operation agreement. Page 2 It is proposed that interests associated with Andrew Hansen and the Hansen Property Trust (subject to Andrew Hansen obtaining Hansen Property Trust’s agreement as contemplated under the co-operation agreement) will receive some or all of their consideration in the form of shares in the ultimate holding company of the acquiring entity under the scheme. As a result, those interests will likely vote in a separate class at the scheme meeting. As a result of Andrew Hansen entering into the co-operation agreement, the Hansen Board is putting in place formal protocols in relation to Andrew Hansen’s access to information and employees, and attendance at Board meetings in relation to the Proposal. Process, Exclusivity and Confidentiality Arrangements Hansen and BGH Capital have executed a Process and Exclusivity Deed which will govern the process under which BGH Capital will undertake due diligence and the parties will work towards agreeing and executing a binding SID. In addition, the parties will enter into a separate Confidentiality Agreement to provide appropriate confidentiality obligations. A period of exclusive due diligence access has been granted, which is to commence on the date of the Process and Exclusivity Deed and will run for a period of six weeks following provision of due diligence materials ("Exclusivity Period"). The exclusivity provisions that will apply during the Exclusivity Period include customary "no shop", “no talk”, "no due diligence" and notification protections to match any Competing Proposal. A copy of the Process and Exclusivity Deed is attached in Appendix B. Investors should refer to that document for a detailed understanding of the agreed arrangements. Hansen will continue to keep the market informed of any material developments in accordance with its continuous disclosure requirements. There is no certainty that the Proposal will result in a transaction being put forward to shareholders for consideration and shareholders do not need to take any action in relation to the Proposal at this time. Hansen has appointed GrilloHiggins Lawyers as its legal adviser, and is finalising the appointment of a corporate adviser, in relation to the Proposal. This announcement has been authorised for release by the Hansen Board.

it was actually the intending buyer that walked away here

now there is no guarantee another offer will arrive , but management clearly signaled it was ready to sell , at a reasonable price
 
Hansen Technologies awarded major upgrade contract for Energy Queensland Limited
Hansen Technologies Limited (ASX: HSN) (“Hansen”), is pleased to announce an expansion of our
partnership with Energy Queensland Limited (EQL). As part of the agreement EQL, owners of
Australia’s largest electricity distribution network, has committed to upgrade to the latest version of
Hansen CIS as well as taking new products in Hansen MDM for meter data management and
Hansen NBM for network bill management.
The expanded agreement includes an upgrade of EQL’s existing Hansen CIS for customer care and
billing onto Hansen’s latest SaaS platform. The new agreement builds on the existing long-term
relationship between Hansen and EQL and is for an initial term of five years with associated revenue
of approximately $45m.
Andrew Hansen, Global Chief Executive Officer, Hansen Technologies commented: “This new
agreement adding Hansen MDM and Hansen NBM to the upgrade of Hansen CIS on our latest
SaaS platform is a fantastic example of Hansen’s ability to partner with our customers and provide
valuable solutions.”
This announcement is authorised by the Board.

====================================================================

( DYOR )

i hold HSN ( 'free-carried ' )
 

Why this 52-year-old ASX tech stock never cared for fast growth.​

For the past decade, the CEO of listed software company Hansen Technologies has watched on as valuations of young, unprofitable tech companies were sent soaring in the name of fast growth....

Despite having a $1 billion market capitalisation, the company has flown under the radar in comparison to its software peers such as WiseTech, Xero and TechnologyOne. This, Hansen admits, is partly his own doing.

“It’s due a little bit to me that it hasn’t been a widely publicised story. We’re a public company, but the people we sell to globally are not looking at Hansen based on its history, but on its applications,” he says. “[I realised] we have thousands of investors, and we’re probably doing them a disservice. We’re a sustainable, profitable business that’s been around for 50-odd years – I don’t know many companies that could say that.”

For the most part, the company’s growth can be tied to three things: deregulation, the economy and acquisitions.

In the ’90s, the wave of deregulation created opportunities for competitors to emerge in both the telecommunications and utilities sectors, creating opportunities for Hansen to broaden its customer base.
Since then, Hansen says the company’s growth has come down to the speed of the economy and acquisitions, which have enabled it to expand internationally.

“If the economy grows by 5 per cent, so will we,” he says. “How we speed that up is by doing acquisitions, we have [effectively] bought customers in Finland, Norway, Denmark and more to add to the mix..."
 
HSN @ 5.40

Hansen creeping ahead with pretty lacklustre FY23 results:
Revenue up more than 5%
Margin about 31%
EPS up 1%
NPAT up 2.1%
Div flat
Doesn't seem enough growth to justify the high multiples? P/E = 21, P/BV = 3.5 (based on FY22 figures)

Guidance for FY2024 suggests more inching forward; similar mild topline growth and EBITDA margin

Held

Screenshot_20230823-090421_OneDrive.jpg
 
after the DTL drop yesterday , HSN will be interesting to watch is this market all about expectations and results don't matter ?
 
Hansen makes strategic acquisition of powercloud

Hansen Technologies Limited (ASX: HSN), a leading global provider of software and services to the energy, water and communications industries, is pleased to announce it has completed an acquisition of 100% of the security interests of powercloud GmbH (powercloud) for an equity value of EUR 30m (~AUD $49m).

powercloud is expected to add FY25 revenues of approximately EUR 24-28m (AUD $40- 46m) and is anticipated to become EBITDA accretive within the financial year ending June 2025.

About powercloud Founded in 2012, powercloud is a leading provider of mission-critical billing and customer management software products serving tier 1 and 2 utility companies and regional municipalities across Germany.
With currently over 300 employees, powercloud supports 65+ customers including many of the largest German utility retailers. Supporting customers along the whole customer lifecycle, powercloud services the B2C & B2B Retailer and Grid Operator network in Germany.
powercloud’s products provide a high degree of automation, configurability, stability and scalability. powercloud’s modern, flexible, and modular cloud native billing and regulatory processes helps their customers dramatically reduce time to market and cost to serve.

Strategic rationale

Sitting within Hansen’s core business of billing and customer management, the acquisition of powercloud brings a market leading German application to Hansen’s existing suite of global products.
Hansen’s Managing Director, Andrew Hansen, has expressed his enthusiasm, stating, “Hansen recognises and applauds the visionary approach that powercloud has adopted.
Under the leadership team's guidance, powercloud has developed a flexible, modern and cloud-native platform that addresses the needs of energy retailers in the German marketplace.” The acquisition significantly expands Hansen’s scale and scope in the utilities sector and the depth of its operational presence in one of Hansen’s key target markets Germany, and the broader DACH region (Germany, Austria, Switzerland), where Hansen already has existing tier 1 and 2 customers. Germany is the largest European economy and the fourth largest economy in the world and represents significant growth opportunities for Hansen and powercloud.
The German government is seeking to accelerate the rollout of smart meters and has announced a proposed law that enables a large-scale smart metering rollout to start immediately before becoming mandatory from 2025 and provides a roadmap with binding deadlines to achieve an essentially full rollout by 2030.
Over the years, powercloud has continued to make substantial investments in advancing its technology platform. Hansen's acquisition of powercloud has come at an ideal time, aligned with the ongoing evolution of the German energy marketplace.
Under Hansen ownership powercloud is strongly positioned to benefit from the evolution in the German market.
The combination of the two businesses is expected to lead to material shared benefits and revenue and cost synergies.
With Hansen’s wealth of experience in the sector, and its customer focused approach to product development, the acquisition is set to deliver substantial opportunities to accelerate and optimise powercloud’s further expansion into the DACH region and beyond.
About the acquisition The acquisition has been 100% debt funded from Hansen’s existing banking facility.
Post acquisition, Hansen’s balance sheet is expected to remain strong with a debt to EBITDA (leverage) ratio of significantly less than one.
Hansen’s Managing Director, Andrew Hansen, said, “Hansen is excited by the products and skills of the powercloud team.
Hansen looks forward to welcoming powercloud as a key product suite of the Hansen Group and working with the team at powercloud and their customers to continue to deliver innovative, industry leading and flexible solutions utilising Hansen’s customer first approach to help our customers navigate the energy transition.”

Further information on this acquisition will be provided in the upcoming 1H24 results announcement on Wednesday 21st February.
In addition, a briefing conference call to discuss the acquisition will be held today at 10am Melbourne time 13 February 2024.

Click the link below to pre-register for the call. You will be sent an invitation and dial in details. https://s1.c-conf.com/diamondpass/10036860-qmo65u.html

This announcement is authorised by the Chairman.

i hold HSN ( 'free-carried' )

an interesting turnaround not so long back Andrew and management were eager to sell the company

Germany is a train-wreck ( as is Europe ) let's see if HSN can glean some useful synergies an IP out of this
 
Screenshot_20240221-113131_Drive~2.jpg
.
"Leveraging our market leading platform of software, we have continued to rapidly paydown debt during the half and expanded our organic growth with a number of strategic customer wins and upgrades."

"I'm really pleased with how the Company performed this half. Our TM Forum Open Digital Architecture (ODA) award has strengthened our credentials. Our product offerings are 'External Al Ready' and purpose developed for key business use case integrations across a well diversified customer base."

"The company's strong revenue growth during the half was due to its continued investment in its sales and account management efforts, leveraging the strengths in its existing customer relationships and modest favourable foreign exchange impacts."

"Hansen's combined product capabilities, coupled with its flexible deployment methodologies allow it to satisfy more requirements than pure play Customer Information System (CIS) vendors. Hansen is actively supporting customers to deploy novel use cases such as Virtual Power Plants (VPP) & Electric

Vehicles and this is a key area of growth focus for the business."
.
clearly something else stood out .. retrace 10 per cent
.
Screenshot_20240221-113054_CommSec.jpg
 
about the only disappointment for me was the 5 cent partly franked div .

but then i bought in @ 83 cents and some may consider me overly greedy

( i also participate in the DRP , so the drop in SP is of lesser concern to me , maybe i will get a few extra shares )
 
Hansen Signs 7 Year Renewal & Upgrade Contract with a Leading European Utility

28 June 2024

Highlights
• Hansen signs 7-year renewal contract with a leading European utility
• SSE, a long-term Hansen customer since 2005, is a leading supplier of electricity and gas to the United Kingdom and Republic of Ireland
• The agreement will facilitate an upgrade to Hansen’s cloud-enabled, event driven CIS platformHansen Technologies Ltd (ASX:HSN), a leading global provider of software and services to the energy &utilities and communications & media industries, is pleased to announce it has signed a 7-year renewal contract.
The contract renewal and upgrade represents a significant enhancement to the existing contract.
This includes implementation commencing in FY25 and an additional incremental recurring revenue uplift of approximately A$2.8m per annum post implementation completion.

The counter-party is a leading supplier of electricity and gas to the United Kingdom and Republic of Ireland. The contract renewal and upgrade reflects the long-term partnership with Hansen that commenced in 2005.


Under the renewal, the utility will upgrade to Hansen’s cloud enabled Customer Information System(CIS) platform, underpinned by an event driven architecture, to enable greater customer engagement and access to features supporting smart meter data management and flexible pricing and quoting for electric vehicles, solar, battery, and heat pumps.


Hansen’s Global CEO and Managing Director, Andrew Hansen, stated: “We are extremely proud of our enduring partnership.

This renewal represents a significant milestone, highlighting the strategic investments we have made in our products and underscoring our commitment to supporting a valued customer through their digital transformation journey.

Our continued collaboration reflects our ability to deliver innovative solutions and reliable support in an evolving digital landscape.”

This announcement is authorised by the Board.

i hold HSN ( 'free-carried ' ) ( bought February 2013 @ 83 cents )
 

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