Relais hosted its first ever CMD yesterday. Overall, the focus is clearly around capital allocation, which we view logical following the acquisition spree in 2025. New financial targets are for at least 10% adjusted EBITA growth over the cycle and minimum of 13% ROCE.
The company continues to focus on vehicle aftermarket while we were left with impression that focus is in organic growth with additional bolt-on acquisitions.
Furthermore, the company is building M&A pipeline within business areas which we view positively as it increases accountability.
Overall, we view new financial target well in line with consensus expectations as Modular Finance consensus models 12% adjusted EBITA CAGR for 2025-28E, most likely on organic basis.
In addition, organic growth focus is likely to drive down leverage level (3.55x in Q1) and increase stability of the company.