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“Subsequent to the issuance of the June 2019 interim financials by BMIT Technologies plc, we are updating our research coverage on the stock and we maintain a Hold recommendation, with a 12-month price target of €0.52. As expected the Group’s profitability margins have been impacted as a result of the increase in costs surpassing the growth in revenue. This deterioration mainly reflects the Group’s current strategy to increase its workforce by 40%/50% during the next two financial years, being FY 2019 and FY 2020. Additionally, BMIT is expected to incur extra costs in operating the new Zejtun data centre, coupled with finance costs that are anticipated to be incurred in financing this investment and the planned acquisition of the Handaq data centre. In the short to medium term we expect the Group’s revenue to increase at a normalised rate, which combined with the substantial increase in costs as a result of the Group’s investment in its data capacity, will exert downwar

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