Solid progress in Q225

Zalaris made solid progress in Q225, with revenue up 12% y-o-y and the adjusted EBIT margin expanding 3.3pp to 12.1%. Managed Services continues to win new customers and expand work with existing customers, with a net revenue retention of 103%. Zalaris Consulting growth was more modest, as some staff were diverted to working on Managed Services deployment projects, but profitability improved due to better utilisation. With a steady flow of new business in Managed Services and improved EBIT margins in both businesses, we view the company as on track to meet its FY28 targets, and we maintain our forecasts.