Not a bad buy!
An operating profit of 0.8 million euros “at worst” with a 4.5 million euro price tag. At last glance, there was over 10 million euros in cash, so there was still plenty of cash left for a rainy day too 
Viafin is a pleasure to own.
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Didn’t the purchased company still have cash?
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Yes, both had zero interest-bearing debt and negative net debt.
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Of course, if the cash reserves of the acquired companies are taken into account, the purchase price was 3.8 million + potential additional payments.
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Here are Kopsa’s comments on the recent acquisition announced yesterday. 
Viafin Service announced on Thursday an acquisition in which it strengthened its offering in electrical maintenance. With a combined turnover of almost EUR 6 million, the acquisition is moderate given Viafin Service’s size (6% of 2025e turnover), but the good profitability of the companies can be seen to support Viafin’s earnings level even more.
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Based on key figures and valuation, quality and growth were obtained at a good price 
The purchase price is cheap
“The purchase price seems cheap, and the expanding offering in industrial maintenance supports Viafin’s growth strategy. Based on combined data, the purchase price corresponds to approximately 3.9 EV/EBIT and 0.5 MEUR EV/S levels. In our opinion, the purchase price seems very moderate. Based on the information received, we consider the transaction positive for Viafin Service. Companies with good profitability and growth at a reasonable price with Viafin Service’s strong cash position.”
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July-December 2024 in brief
Revenue was 50.0 (37.6) million euros, an increase of 32.8 percent.
EBITDA was 4.9 (3.5) million euros, representing 9.7 (9.4) percent of revenue.
Operating profit (EBIT) was 3.9 (2.9) million euros, representing 7.9 (7.8) percent of revenue.
Profit for the review period was 3.2 (2.6) million euros, representing 6.4 (6.9) percent of revenue.
Average personnel during the review period was 641 (518).
January-December 2024 in brief
Revenue was 91.6 (75.4) million euros, an increase of 21.6 percent.
EBITDA was 7.5 (5.4) million euros, representing 8.1 (7.1) percent of revenue.
Operating profit (EBIT) was 5.7 (4.2) million euros, representing 6.3 (5.5) percent of revenue.
Profit for the financial year was 4.7 (3.6) million euros, representing 5.1 (4.8) percent of revenue.
Cash flow from operating activities before financial items and taxes was 4.5 (6.6) million euros.
Cash and cash equivalents were 10.1 (17.2) million euros, corresponding to 2.92 (4.89) euros per share excluding own shares.
Cash conversion was 60.5 (122.6) percent.
Average personnel during the financial year was 614 (514).
The company’s Board of Directors proposes to the Annual General Meeting to be held on April 29, 2025, that a dividend of 0.65 (0.55) euros per share be paid for the financial year 2024.
Financial guidance for the financial year 2025
The company estimates that the revenue for the financial year 2025 will be 90-100 million euros and the operating profit (EBIT) for the financial year will be 5.8-7.4 million euros.
Edit: As a comment, it’s nice to follow this progress. Fortunately, it’s also in my portfolio, but I still scooped it up with too small a spoon below 14e.
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I put this together.
I took this from CEO Pesu’s text.
Due to acquisitions, our personnel grew from approximately 500 professionals in the previous year to over 600 professionals. We still see good and suitable acquisition opportunities for us in Finland, and we will continue to systematically evaluate acquisition targets in line with our strategy, emphasizing owner value. There is also room for organic geographical growth, and we will continue to invest in ensuring that we remain a local, entrepreneurial, most customer-oriented, and cost-effective service partner in the market.
I thank our customers, partners, and all our personnel for the 2024 financial year.
We estimate the revenue for the 2025 financial year to be 90-100 million euros and the operating profit (EBIT) for the financial year to be 5.8-7.4 million euros."
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Here are Olli’s comments on the result.
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Heikki Pesu arrived immediately in the early morning after the results at the Ruoholahti studio to be interviewed by @Olli_Koponen. Many companies have commented that the beginning of the year remains challenging and are expecting an improvement during H2, but contrary to the general trend, Pesu, however, estimated that “the outlook for the beginning of the year might be slightly better, but in the longer run, it will be seen as weaker”, which is perhaps also reflected in the slightly cautious revenue guidance. On the other hand, unless I remember completely wrong, Viafin has been reasonably cautious with its guidance before. Someone can correct me if I remember incorrectly. 
Topics:
0:00 Introduction
00:14 Q4 and year-end highlights
01:40 Strong growth, but profitability declined
03:08 Development of acquisition targets
04:15 Development of maintenance and project business operations
04:52 Profitability of maintenance business
05:47 Outlook for this year
08:14 Market recovery
09:25 Early-year acquisitions add electrical expertise
11:20 Organic growth opportunities in electrical maintenance
12:18 Guidance
13:50 Visibility for the rest of the year unclear
14:27 Revitalization of Finnish economic growth and industrial activity
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The activity in this thread is really great 
But the company continues its steady hum.
I can’t think of another company on the Helsinki stock exchange that would detail the development of its liquid assets so thoroughly in an investor presentation. There is currently 10 MEUR in cash, or 3 EUR per share (excl. shares owned by Viafin itself).
Although some of last year’s cash flow went somewhere, in principle, the business generates strong cash flow, and thanks to negative working capital (customers pay in advance), running the business does not require “own” money. This delicious feature is mainly found in a few companies on the domestic stock exchange, such as KONE and NoHo.
This is the situation in Finland’s economy during its toughest hangover in living memory!
The presentation can be found here https://sijoittajat.viafinservice.fi/files/documents/Viafin%20Service%20Oyj%20-%20Tilinpäätöskatsaus_presentaatio%202024.pdf
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Here is Kopsa’s latest company report on antihyzon.
We raise Viafin Service’s target price to 21.5 euros (previously 21.0 euros), but lower our recommendation to reduce (previously add). Viafin Service’s earnings grew strongly in 2024, and despite market instability, the company has good opportunities to continue earnings growth in 2025 through acquisitions. In the short term, however, the stock’s return expectation has moderated due to the increased share price.
Quoted from the report:
Cash has been put to work in the form of acquisitions, but even with the rough prices of the latest acquisitions, it would be possible to acquire 20 MEUR in revenue and 2.5 MEUR in operating profit. The cash position is therefore still very strong and provides opportunities for inorganic growth and increasing dividend distribution.
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I received a ‘reduce’ recommendation perhaps a bit unexpectedly, although the air has already been pushed out of the earnings day price, and the view could now be a budding ‘add’. This was perhaps further emphasized by how Orthex, in today’s report, was still placed on the ‘Add’ side with the accompanying words: Orthex’s earnings-based valuation (2025e: EV/EBIT 10x, P/E: 13x) is, in our opinion, relatively neutral, and achieving an attractive return expectation thus requires clear earnings growth from Orthex. At the same time, 3-6% revenue growth is forecast, with EBIT gradually improving closer to the 12-13% range, for which the track record is at least variable.
For Viafin’s report, on the other hand, it said this: With the recent rise in the share price, Viafin Service’s return expectation has moderated in the short term. Based on our forecasts, the valuation of Viafin Service’s share for the coming years is, in our opinion, relatively neutral (25-26e: P/E: 13x, EV/EBIT: 9x, EV/EBITDA: 7x). Compared to our accepted valuation range and its lower bound (P/E: 14x, EV/EBIT: 10x, EV/EBITDA: 6x), there would not be significant upside potential in the share at the moment. With 2025E multiples, we are thus at slightly better prices, and at the same time, no significant earnings improvement is forecast (the company’s target state of over 8% EBIT vs. a forecast of 7.0-7.3% far into the future), and the company already has a track record of good acquisitions at a low price. Something that is conspicuously absent in Orthex, even though this was heavily touted during the IPO.
In summary, the views on earnings-based valuation are neutral for both, but one was still slapped with an ‘Add’ and the other with a ‘Reduce’. Which horse would I bet on myself at these valuation levels → the latter, i.e., Viafin. The industries are, of course, completely different classes – metal pipes and plastic pots – and in the hands of different analysts, but I wanted to share my thoughts. I do agree about Viafin’s guidance, that it was surprisingly cautious considering the recently announced acquisitions, and the CEO’s view on market dynamics (regarding H1-H2 outlook) was surprising compared to others.
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Analysts also vary, so I believe it’s fine to have different views on stocks. Investors can then make their own assessment and interpretation as to whether they should be on the ‘add’ or ‘reduce’ side.
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Yep, that was mentioned, and that’s exactly how one always has to make their own assessments.
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Artun’s concise comments about Viafin.
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Here is an interview with the CEO of Bear Group, how is it possible that the company first goes bankrupt as Karhu Group, then continues business after bankruptcy as Bear Group. Then million-euro deals are made with Viafin.
Unfortunately, it’s behind a paywall.
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With a little Googling, "According to Satakunnan Kansa, the Pori-based electrical company Karhu Group went bankrupt due to a contract dispute with Metsä Fibre.
The administrator of Karhu Group’s bankruptcy estate, attorney Timo Santavuo, has confirmed to the newspaper that the bankruptcy was specifically due to a contractual disagreement with Metsä Fibre.
Karhu Group’s CEO Jani Häkkinen had previously told the newspaper that the bankruptcy was caused by approximately four million euros in receivables from one client."
If one has followed Metsä Fibre’s operations regarding this particular mill, my own characterization would be somewhere between abysmal and immoral. Project cost overruns are handled by leaving contractors’ invoices unpaid, and there’s also some dispute with Valmet.
More on the matter on a larger scale in TE (Talouselämä), behind a paywall:
Big companies mess up, SME entrepreneurs suffer, and on top of that, the envious ones… pile on.
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Inflation seems to have gotten out of hand during the corona era. I don’t believe it’s about big companies screwing up and punishing small ones.
Bids and contracts for projects were just made before inflation, and now they’re fighting over who takes the hit.
I’m at least interested in how that happened. 
These are not matters of faith; there is factual information about this. Of course, we don’t know what changed Karhu to Bear, but if this were the reason, it wouldn’t be surprising.
"More than half of companies report that the law has not been followed when payment terms have been extended. – It is wrong that small companies act as banks for larger companies. The Payment Terms Act is not being followed, and therefore authorities must start supervising its compliance. A government proposal to parliament is urgently needed on this, says Tiina Toivonen, Head of Legislative Affairs at Suomen Yrittäjät (Federation of Finnish Enterprises)…
…22 percent of companies say that their payment terms have been extended during the last two years. The problem thus affects about 66,000 SMEs and is largest in industry (34%) and construction (37%), according to the Entrepreneur Survey.
Large private companies have extended their payment terms the most (60%). Long payment terms cause financial harm especially to the construction sector (45%) and industry (38%)."
"Small businesses are forced to wait longer and longer for their receivables from large client companies. According to a survey by Suomen Yrittäjät, payment terms have significantly lengthened since last year.
About a third of company representatives report that their payment terms have been extended during the past couple of years. This proportion has grown significantly compared to the same period last year, when less than a quarter of companies reported extended payment terms."
Edit. Got Bear and Karhu mixed up 
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