I made some classic mistakes when starting to analyse this company. To not mix you up, I attached it at the end, so you won’t think it’s the correct thing to do (math & logic errors). I wanted to make a 4-phase research, but I forgot about the fact that this company was killed fast; nevertheless, I think it might be interesting for you to know how it got killed:If you become a Founding Member of the NabzdykRatings Software today (€9/mo), I will manually grant you Premium Access to this Substack for free.Become a founding memberHere is the verdict if you don’t like reading:Span d.d. kill verdict: • The company sells Microsoft’s products, so they are dependent on them. • While they generate 232 M of revenue on invested capital of around 14k, it’s built on a weak foundation: Microsoft, which can stop collaborating.• Collecting cash immediately makes cash & equivalents go up, while taking time to pay Microsoft makes NIBCL go up. This means if they stop growing, working capital stops being positive and the company crashes down.• They acquire companies to hide their slow revenue growth. In 2023, they bought GT Tarkvara. The company saw 9% increase in revenue, while the group saw 29%. The difference (6%) was bought. (annual report 2023 page 38). • Verdict: Killing this company is the best choice - it offers no stable growth & moat I’m looking for.In this phase, I’m supposed to set the company’s archetype. But firts I need to chekc it’s operating margin7858 operating income (in thousnads of EUR). But that took a LONG time. Also, for some reason, even though it resulted in 3.3% operating amrgin (whcih shdoul have been killed instantly).I mean, just look at this:I saw that and didn’t know where it was even though it’s a simple subtraction of all operating expenses from total revenues.230,861 + 1,364 = 232225160317+ 544 + 11280 + 43322+ 4255+ 240 + 1431 + 2979 = 224368232225-224368 = 7857 (I did use 7868 in ROIC, but I presume it’s a roudning error I did then, or a small mistake).I started to calculate the ROIC, to see if they had higher costs than ROIC.2025:NIBCL:trade & other payables (short WITHOUT long term): 39,366Contract liabilities: 100Deferred income: 3,792Corporate profit tax liability: 337NIBCL: 435952024:32,7732,2552,714343NIBCL: 38085I thought of it as being a capital-light company, but it’s more like a consumer brand, really? Like how would you define it? They have massive costs with these Microsoft licenses.So here I had this company, which on paper looks great 29% to 71% ROIC in a year andit has lower capital needs Y/Y. Noticed the D - invested capital - it’s gone lower. But this might be misleading.Notice the fact that intangible assets are a large part of tehri assets, whcih is worrying.
That can make it look like their assets are growing, but they just bought them.
Span d. d. - Group data
2025:
total assets: 113767
goodwill: 7474
otehr intangible assets: 5057
actual assets: 101236
2024:
total assets: 81177
goodwill: 8905
otehr intangible assets: 6072
actual assets: 66200
2023:
total assets: 72261
goodwill: 8905
otehr intangible assets: 7149
actual assets: 56207Span DD:2024:175434 Operating Expenses5445 Operating incomeSo we actually have grwoth in operating profit.(7858 − 5445) ÷ 5445 = 44.31% Y/Y.revenue: 2025:2322252024:180879Y/Y grwoth: 28.38% growthcosts:2025: 2154632024: 16803128.22% Y/Y grwothwhy costs are going up so much:AcquisitionsAcquisition of subsidiaryThe Company is an authorised partner and provider of consultancy and implementation services for leading global cloud platforms, including Microsoft Azure, Amazon Web Services and Google Cloud.They don’t sell their own products. Killed.ROIC - actual assets, without acquisitions used:=== NABZDYKRATINGS EXPORT ===
Exported on: 7/8/2026, 7:38:36 PM
[PERIOD 1]
Name: FY 2024 Span D.D.
Format: 10-K (FY)
Fiscal Year: 2024
Period End Date: 2024-12-31
Risk Free Rate: 1.7
Beta: 1
Equity Risk Premium: 5.93
Market Cap: 86270000
Operating Income (EBIT): 5445
EBIT_TTM_Base10K:
EBIT_TTM_Prev10Q:
EBIT_TTM_Curr10Q:
Interest Expense: 834
Interest_TTM_Base10K:
Interest_TTM_Prev10Q:
Interest_TTM_Curr10Q:
Tax Rate: 29.09
Total Assets Begin: 72261
Cash Begin: 14379
Total Debt Begin: 3991
NIBCL Begin: 35318
Total Assets End: 66200
Cash End: 24368
Total Debt End: 8298
NIBCL End: 38085
[PERIOD 2]
Name: FY 2025 Span D.D.
Format: 10-K (FY)
Fiscal Year: 2025
Period End Date: 2025-12-31
Risk Free Rate: 3.22
Beta: 1
Equity Risk Premium: 5.78
Market Cap: 124290000
Operating Income (EBIT): 7858
EBIT_TTM_Base10K:
EBIT_TTM_Prev10Q:
EBIT_TTM_Curr10Q:
Interest Expense: 1676
Interest_TTM_Base10K:
Interest_TTM_Prev10Q:
Interest_TTM_Curr10Q:
Tax Rate: 21.52
Total Assets Begin: 66200
Cash Begin: 24368
Total Debt Begin: 8298
NIBCL Begin: 38085
Total Assets End: 101236
Cash End: 44056
Total Debt End: 31352
NIBCL End: 43595
Errors:Span D.D:2025 Operating income (Try 1 - no help - no internet, no AI):EBITRevenue: 232225Costs of licenses and hardware sold: 160317Raw material and supplies: 544Gross profit: 71364Services costs: 11,280(I might be getting biased by teh number below, so I need to take my best guess)Servcies are an opertaing cost.Staff costs: 43,322But staff costs are also an opertaing expnse - when a comapny opertaes, it needsto pay that.71309.398 - that is my final one.Try 2 - notieced in the middle of try 1:Total operating segment profit: 7858try 3 - no help form AI, but internet is allowed:Operating Income= NI + IE + TENI=Net incomeIE=Interest expenseTE=Tax expenseI odnt knwo whats net cinoem - wait, its what is in cash flow statemnts at thetop.I get: 7,272 as net income (or profit befroe tax)IE = from financial expense: 1,860 - I need to remove Foreign exchange losses1,136 and Other financial expenses whcih are 0.I get:0,724tax expense is simple: Corporate income tax:1,565totoal operating income: 7,272 + 0,724 + 1,565 = 9,561Thsi is easier to sue than this:Operating Income=GP−OE−D−Abecasue I dont know soemtiems teh exact oeprating expensesOk, so now I think I know the answer - let’s see what the AI will say.