AEA Holdings Luxembourg (Sarl)

Overview Key strengths Key risks Market leader in medical services, with more than 80% market share globally on the back of fully integrated in-house service offerings across geographies. Limited scale and weaker service diversification than its larger peers in business services. Diversified customer base including global corporates, governments, international organizations, and non-governmental organizations spread across more than 90 countries. Below average profitability of 11.5%-12.0% compared with peers in professional services. Strong revenue visibility in the form of long-term government contracts (more than 10 years) for providing medical services with low customer concentration. Relatively discretionary nature of the subscription-based model, based on the economic cycles of corporates. High barriers to entry on the back of the group's unique proprietary network, which

...AEA Holdings Luxembourg (ISOS) outperformed our topline and EBITDA expectations in financial year 2022 (ending June 30, 2022). This is primarily driven by nonrecurring transaction revenues from the operations allied welcome (OAW) contract in medical services and sales from nonrecurring COVID-19-related activities (mainly in medical staffing and clinics). This was offset by a slowdown in recurring sales in medical services as resources from Humanitarian Aid programs were redirected toward the Russia-Ukraine conflict. Overall, we expect topline to normalize from financial year 2023, as contributions from these nonrecurring items will phase out. Excluding the contribution of nonrecurring activities in financial year 2022, we expect low-single digit organic growth from financial year 2023 with recovery in subscription growth in health and security subscription services (H3S) as travel gradually returns to pre- COVID levels, an increase in medical staffing in the U.S, and a gradual ramp up in...

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