Readcrest Capital AG: Financial Update and Future Outlook

Readcrest Capital AG, recommended as a "BUY" by NuWays AG, published its H1 report indicating an operational performance below initial projections. H1 sales reached €65.3m, reflecting a 1.6% year-on-year increase, primarily from the UK home care business. Sales growth, expected at 4.5-5% in constant currency, was boosted by increased local billing rates and strategic M&A activities.

Despite certain weaknesses, the company successfully reduced its net debt from €180.1m to €123.5m, thanks to the sale of its care home portfolio. This deleveraging positively impacted its financial structure, aligning with its 2026 EBITDA guidance of at least €22m.

The report highlights challenges such as reduced care hours and budget deficits, while the merger's benefits moderately offset these. Future strategies emphasize individual sales in its German RCS project, aiming to manage pricing but extending cash flows and associated risks.