Development resources are not being increased; instead, investments are being directed particularly toward the commercialization of Easor’s software. Additionally, the demerger will cause costs as Easor needs to build the administration and processes of an independent listed company. The company estimates that independence will result in about EUR 400k in new annual administrative costs. Looking at the F-Secure demerger as a historical reference point, costs will likely end up being higher than this as new unexpected expenses and recruitment needs arise. And separating Easor’s IT infrastructure from Talenom into an independent entity also costs money.
The company’s own targets for growth are higher than our current forecasts, and its ambition and strategy are clearly to pursue strong international growth. In my view, it’s not worth investing in Easor if you are looking for a good bottom line in the coming years, as the company is clearly investing in the pursuit of growth right now. And if growth starts to accelerate, investments will likely only be ramped up further. There is plenty of market to capture in Spain if Easor’s strategy starts to progress, and optimizing profitability is something to think about at some point far in the future. But right now, immediately after the demerger, we are still in a bit of a transition phase where the only certainty is the increased investment, and we are still waiting for evidence of growth. Meanwhile, AI fears are hammering software companies into the ground on the stock market. Not exactly the most optimal moment to go public in that sense 