Why invest in Zalaris
Zalaris is a leading European provider of global payroll and human capital management solutions, operating in a market characterised by strong positive trends. These trends are driven by large and mid-size enterprises that are streamlining their operations across borders in pursuit of cost reduction and increased efficiency. The expected market growth is particularly high in the multi-country segment.
Through the comprehensive suite of payroll and HR services offered by ZalarisPeopleHub, we assist our customers in cost reduction and process streamlining, all based on a unified IT platform with a local presence. As a leading provider in the multi-country segment, we hold prime positions in the most attractive segments of the payroll services market.
We have a strong track record, with 25 years of uninterrupted growth - a trend we expect will continue. Zalaris PeopleHub is gaining popularity among mid-market and large customers looking to digitalise their payroll and HR processes, resulting in a reported revenue growth of 24% in the last year. We have now reached the milestone of being a company with an annualised revenue of €100 million, and we aim to continue delivering above our target of 10% organic growth for the next 36 months.
Our revenue stream is stable, with around 80% of revenue being recurring or recurring-like. On average, each customer contract within our managed services has a duration of approximately 5 years, and we experience minimal annual churn of just 2–3%. ZalarisPeopleHub is a scalable solution, supporting our industrialised approach to HR and payroll, facilitated through our centralised global service delivery centres.
- Growth: Organic revenue growth +10%
- Adj. EBIT margin: 12–15%
- Cash conversion: >70% of adj. EBITDA
- Leverage: NIBD/adj. EBITDA <2.5
- Dividend: ~50% net profit before tax
*Source: Gartner IT Services Forecast Q2’22, European HCM and Payroll Management Applications Market Forecast 2021-2026