Gloster's open order book continues to grow

Gloster's open order backlog continues its upward trend
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Gloster closed the first half of 2024 with a net order backlog of 3,369 million forints, which is 139% higher than in the same period of 2023. This represents a significant average growth rate of 78% (CAGR) in the growth of the first-half order backlog since 2021.

The open order backlog includes all products and services for which all subsidiaries of the Gloster Group have valid orders but which have not yet been fulfilled for customers. Gloster’s quarterly open order backlogs were as follows:

All figures are in millions of forints; these are unaudited, non-consolidated figures

Source: Gloster Finance Department
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The Company’s order backlog increased by 139%, rising from 1,410 million forints in Q2 2023 to 3,369 million forints in Q2 2024.

In the systems integration business unit, the growth in the order backlog is being driven by an expansion in project work. With regard to service activities (installation, operations, and engineering work), the systems integration business unit is on the verge of a milestone, with management forecasting significant growth for the second half of 2024.  

We are not seeing any significant changes in the cloud business unit’s recurring revenue; however, we are observing an increasingly conscious trend toward cloud “consumption” among our customers, which is primarily reflected in the more deliberate use of Azure services and reservations, as well as Microsoft Modern Work licenses. Looking at the order backlog for the second half of 2024, in addition to traditional migration projects, we are seeing growth in both security and BizApps services. On the security side, these projects primarily involve the implementation of Intune and Autopilot, while on the BizApps side, they involve the delivery of custom solutions based on the Power Platform.

We are seeing stable business operations in the international software development segment and expect regular orders from our clients. All of our framework agreements are in effect, and management anticipates that orders from all clients will continue steadily throughout 2024. Preparations are underway for specific orders related to major automotive framework agreements that have been renewed for the coming years.  Our on-the-ground presence in Germany and Sweden continues to strengthen, and we are currently expanding our sales team by two people in England; as a result, we expect to secure new clients and orders next year thanks to our strengthened sales teams.

The open order backlog reported for Q2 2024 includes orders scheduled for completion by the end of 2024.  

Analysts' Target Prices

Glostert is also covered by two independent investment firms. Links to the full analyses and target prices can be found in the table below:

In this report, the quarterly backlog of open orders reflects the value of orders already contracted at the Group level but not yet fulfilled, as recorded as of June 30, 2024. The quarters referred to in this report are calendar quarters. This statement contains preliminary, unaudited, and unconsolidated data.  

Upcoming, Scheduled Releases

Q3 2024 Open Order Backlog Report - Second Week of October 2024

This prospectus was prepared by Gloster Infokommunikációs Nyrt. (headquarters: 2142 Nagytarcsa, Csonka János u. 1/A, Building A/2). This prospectus contains only factual information and reasonable conclusions based on reasonable calculations, which have been disclosed by the authorized parties in accordance with applicable legal obligations. This prospectus does not constitute an “investment recommendation” within the meaning of Section 5(1)(9) of the Capital Markets Act (Act CXX of 2001 on the Capital Market) and, pursuant to the Securities Act (Act CXXXVIII of 2007 on Investment Firms and Commodity Exchange Service Providers and the Rules Governing Their Activities), does not contain any analysis, recommendation, or other information regarding investment analysis, financial instruments, exchange-traded products, or their issuers, the disclosure of which, on its own or in any other way, could influence an investor to make their own or another person’s money or other assets, in whole or in part, dependent on the effects of the capital market. Gloster Infokommunikációs Nyrt. and its representatives assume no liability for investment decisions based on conclusions drawn from the information contained in this prospectus, nor for any adverse legal consequences or financial losses resulting therefrom.  

For more information:

Dr. Eszter Bassola - Investor Relations Officer

bassola.eszter@gloster.hu

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