In the current context, with the rate cuts, do you think that the macro environment benefits you or still conditions you in terms of growth and valuation?
We are experiencing a year with a lot of uncertainty and the business world is especially sensitive because without a stable framework it is more difficult to generate investment and create value. We are seeing some important advances in the second half of the year, such as the drop in interest rates, however, we continue to move in an environment
where antifragility is essential, marked by phenomena such as political polarization or prolonged conflicts.
Therefore, prudence must prevail and know how to take advantage of the opportunities that arise.
Since its listing on the BME Growth, LLYC has consolidated its international business. What assessment do you make of your financial and stock market evolution in these years?
We have just completed four years since our IPO, and the balance could not be more positive. We continue to maintain our vision as a long-term player, and we believe that our incorporation into the market within the small caps model has allowed us to value both our business and our project.
Since then, our revenue has multiplied by 2.6 times, our recurring EBITDA has more than doubled, and we now have a portfolio of more than 2,000 clients. If you look at a company that came onto the market just four years ago, we have practically tripled our business, and now we are in a consolidation phase of that growth, closing the transformation stage that we began then.
Today we are something that four years ago did not exist in the LLYC universe: a Marketing Solutions and Corporate Affairs company. And, as we have commented on other occasions, transformation is never easy: everyone says they want to transform… until it is their turn to do so.
What weight does the international business currently have in total revenues and how does it contribute to diversifying the group’s results?
Our results evolve year after year depending on how each geography behaves from an economic point of view. Currently, we have a very balanced distribution: approximately a third of our business is in the United States, another third in Latin America and another in Europe.
This structure offers us a very solid position in terms of risk diversification and monetary consolidation, which allows us to adequately manage the risks associated with exchange rate volatility. That said, the United States remains the market with the greatest growth potential for us.
What catalysts could make 2025 a more favorable year for small caps in general and LLYC in particular?
I believe that the main catalyst will be the confirmation of a trend and a solid track record. Since our IPO, we have been one of the companies that has distributed the most dividends within the small cap universe. We have maintained resilient growth, despite market circumstances, and have delivered on our transformation promise.
Our expansion of our product and service offering is now a reality, as is our geographic expansion.
In this sense, we can say that our record demonstrates consistency between what we said we were going to do in the strategic plan and what we have actually achieved. And all this in a profoundly changing environment, where the world of communication and marketing has undergone a radical transformation in the last three years.
This transformation responds, among other factors, to the dilution of boundaries between specialties, the concentration of purchasing decisions by customers and, above all, the impact of artificial intelligence. In fact, when we launched our last strategic plan, three years ago, we did not contemplate the degree of adoption and impact that artificial intelligence would have in our sector.
Therefore, I consider that LLYC has demonstrated a great capacity to adapt, both to market changes and to new technological challenges.
In terms of valuation, do you think the market is adequately reflecting the true value of LLYC?
The market reflects a value, although from our point of view, BME Growth is a market with very little liquidity, which makes it difficult for companies to accurately reflect all the real value they are generating.
Even so, it is an index that sets a healthy level of demand for us: it forces us to comply with the market, to set ambitious goals and to offer solutions to challenges, especially because we have a firm commitment to our shareholders, who have trusted our project.
We have been achieving good results and solid profitability, generating value for shareholders, and we continue working along the same lines. In fact, we are developing our new strategic plan, which we believe will be a key growth tool for the next three years.
What factors or levers could contribute to a better valuation of the company in the market?
The first lever is to finish our transformation process and have the teams fully structured around clear objectives: the EBITDA Team, the Growth Team, the Profit Margin Team and the M&A or inorganic growth Strategy Team.
The second is the total integration of our businesses in the United States and Colombia, where our last two large acquisitions have occurred.
And the third, having a fully integrated offer, which allows us to place the client’s challenges at the center, increase the average service ticket and improve our recurring income (revenues).
How can small caps gain the trust of an investor who is increasingly demanding in transparency and financial reporting?
Our management is based on three fundamental pillars: transparency, long-term vision and clear strategy. I firmly believe in the importance of communicating honestly and complying with the obligations that come with being a listed small cap, generating trust among those who support our project. I understand that growth requires time and sustained planning, which is why we work with a defined roadmap and a constant commitment to consistency and compliance, key elements to create value and strengthen the relationship with our investors.