Readcrest Capital AG (von NuWays AG): BUY 05.10.2026, 09:00 Uhr von dpa-AFX Jetzt kommentieren: 0

Original-Research: Readcrest Capital AG - from NuWays AG



05.10.2026 / 09:00 CET/CEST
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Classification of NuWays AG to Readcrest Capital AG



     Company Name:                Readcrest Capital AG
     ISIN:                        DE000A0LE3J1



     Reason for the research:     Update
     Recommendation:              BUY
     Target price:                EUR 2.80
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Philipp Sennewald



Deleveraging delivered, bolt-ons fuel the UK; Chg.



On Wednesday, Readcrest published its H1 report showing operating
performance, which was slightly below our expectations. Here are the key
takeaways:



H1 sales came in at EUR 65.3m (eNuW: EUR 67.5m), up 1.6% yoy and entirely
attributable to the UK home care business. In constant currencies, growth
should have been in the ballpark of 4.5-5% (eNuW). While weekly care hours
remained stable at 88.9k (vs 88.8k prior year), sales were driven mainly by
two factors. One is price, as local billing rates increased 4.7% on average
on 1st April. The second is M&A: While the two November'25 bolt-ons
contributed for the full H1 (eNuW: EUR 4m top-line effect), Elite Assistance
Ltd contributed from 27th March (eNuW: EUR 0.6m effect). On the other hand, we
saw negative impacts from reduced hours due to budget deficits at one local
entity as well as the re-tendering of the Manchester contract. GHSC had
previously held two of the city's area lots after taking over one from a
failed provider, but was limited to a single lot in the new tender and lost
an extra-care scheme to a competitor.



Group EBITDA came in at EUR 3.4m (eNuW: EUR 4.0m), down from EUR 5.5m in H1'25.
The decline is largely due to the consolidation of RCS and its running costs
(EUR 0.6m) as well as the Readcrest holding expenses (EUR 1.2m). On a l-f-l
basis and at constant currencies, UK home care EBITDA (EUR 5.2m reported,
-5.3% yoy) declined by around 15% yoy (eNuW), as M&A contributions of some EUR
0.7m only partially offset lower organic care hours and the April wage
increases.



The positive highlight of the release was the deleveraging, thanks to the
disposal of the care home portfolio. Proceeds were used to repay £ 30m of
bank debt, which together with the reclassification of EUR 16.4m of the
mandatory convertible into equity, cut net debt from EUR 180.1m at year-end to
EUR 123.5m.



FY26 guidance was confirmed, as management continues to expect EBITDA of >= EUR
22m, including c. EUR 12m from GHSC and c. EUR 4m running costs from RCS and the
holding as well as >= EUR 14m one-offs from creditor waivers. Should the
planned AOC receivable purchase close in 2026 as planned, EBITDA would rise
to at least EUR 41.2m. Both one-offs, however, remain conditional on payments
that have net yet occured, making the headline figure largely a question of
timing. On the operating side, the implied H2 GHSC EBITDA of c. EUR 6.8m looks
achievable given last year's H2 of EUR 7.0m and the three bolt-ons closed in
Q3 (EUR 2.5m FY-run-rate, eNuW). Moreover, H2 has, unlike H1, the full effect
from the increased billing rates, which is why we regard the outlook for the
operating business as achievable. Importantly, the c. EUR 12m excludes the
three bolt-ons closed in Q3 (c. £ 2.4m post-synergy run-rate, eNuW), which
only contribute pro rata in FY26 and hence come on top. Management also
reiterated its adjusted group EBITDA guidance of EUR 8-9m.



Looking at the German project development business (RCS), Halle switched
from a bulk sale to individual sales of the 399 units, with a revised
building application due in Q4 and construction start now expected in Q3/27,
while Schwerin is set to start in Q1/27. Our take: While individual sales
should support pricing and allow buyers' MaBV instalments to fund
construction, the switch pushes cash flows back and shifts the risk from a
single buyer to absorbing 399 units in Halle at a time of rising rates.
However and as outlined in our initiation note, RCS remains the swing factor
adding attractive optionality to the case, While there is considerable
execution and financing risk, as the creditor waivers underpinning the
restructuring have yet to become effective, RCS remains the swing factor
adding attractive optionality to the case.



Reiterate BUY with an unchanged PT of EUR 2.80 based on SOTP.



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Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
++++++++++



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2409928 05.10.2026 CET/CEST