olivLaw · European equity research
Zegona Communications Plc ZEG.L
United Kingdom · London Stock Exchange · ISIN GB00BVGBY890 · Vertical: Listed companies from United Kingdom
Zegona Communications Plc is a UK company that, as of its 2023 annual report, held no material operating asset and was seeking to acquire European telecoms businesses. Its proposed purchase of Vodafone Spain, announced in October 2023, is a notable case for the European telecoms market, financed largely in euros.
At the close of 05 Nov 2026, Zegona Communications Plc (ZEG.L) stock was 17.74 GBP (−5.94% on the day), with beta 0.43, 52-week range 11.75–18.86 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 52.9
- neutral
- Bollinger (20, 2)
- 16.47 – 18.30
- in the upper half of the band · %B 0.69 · band width 10.5%
- SMA 50 / 200
- 17.27 / 16.86
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.21 / 0.12
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.3% | −0.6% | +0.3 pp | — |
| 3 months | +16.3% | −4.2% | +20.4 pp | — |
| 6 months | −2.8% | +4.3% | −7.2 pp | — |
| Year to date | +27.2% | +7.5% | +19.7 pp | — |
| 1 year | +46.6% | +9.9% | +36.7 pp | +6.7% |
| 3 years | unavailable | +49.8% | unavailable | +24.8% |
| 5 years | +1,581.5% | +42.8% | +1,538.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | unavailable |
| Net income | 79.9 m | -3.3 m | -15.6 m |
| Net income YoY | unavailable | −104.1% | unavailable |
| Diluted EPS | 0.47 | -0.61 | -0.15 |
| Diluted EPS YoY | unavailable | −229.8% | unavailable |
| net % | unavailable | unavailable | unavailable |
| Free cash flow | -39.2 m | -3.9 m | unavailable |
Balance sheet & financial health
Fiscal year 2023 · 31 Dec 2023
- Cash
- 4.6 m EUR
- Financial debt
- unavailable EUR
- Net debt
- unavailable EUR
- Equity
- 1.2 bn EUR
- Total assets
- 1.2 bn EUR
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- -2.6%
- ROA
- -2.6%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (EUR)
Income statement · EUR
| Line | 2021 | 2022 | 2023 | Source (latest year) |
|---|---|---|---|---|
| Operating income | -34.0 m | -3.3 m | -13.4 m | esef· 11 Jun 2024verified |
| Interest expense | 376.0 k | 4.0 k | 4.0 k | esef· 11 Jun 2024verified |
| Pre-tax income | -34.3 m | -3.3 m | -15.6 m | esef· 11 Jun 2024verified |
| Income tax | 0 | 0 | 0 | esef· 11 Jun 2024verified |
| Net income | 79.9 m | -3.3 m | -15.6 m | esef· 11 Jun 2024verified |
| Diluted EPS | 0.47 | -0.61 | -0.15 | esef· 11 Jun 2024verified |
Balance sheet · EUR
| Line | 2021 | 2022 | 2023 | Source (latest year) |
|---|---|---|---|---|
| Cash | 10.6 m | 5.9 m | 4.6 m | esef· 11 Jun 2024verified |
| Current assets | 10.8 m | 6.0 m | 1.2 bn | esef· 11 Jun 2024verified |
| Property, plant & equipment, net | 30.0 k | 13.0 k | 1.0 k | esef· 11 Jun 2024verified |
| Total assets | 16.0 m | 10.9 m | 1.2 bn | esef· 11 Jun 2024verified |
| Short-term debt | 106.0 k | 0 | — | esef· 18 Apr 2023verified |
| Total liabilities | 1.6 m | 402.0 k | 17.6 m | esef· 11 Jun 2024verified |
| Equity | 14.5 m | 10.5 m | 1.2 bn | esef· 11 Jun 2024verified |
| Shares outstanding at year end | 170.0 m | 5.4 m | 103.7 m | esef· 11 Jun 2024derived |
Cash flow · EUR
| Line | 2021 | 2022 | 2023 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -39.1 m | -3.9 m | -3.9 m | esef· 11 Jun 2024verified |
| Capex | 34.0 k | 0 | — | esef· 18 Apr 2023verified |
| Free cash flow | -39.2 m ≈ | -3.9 m ≈ | — | esef· 11 Jun 2024derived |
| Investing cash flow | -34.0 k | 25.0 k | -289.8 m | esef· 11 Jun 2024verified |
| Financing cash flow | -408.8 m | -106.0 k | 292.3 m | esef· 11 Jun 2024verified |
| Share repurchases | 388.5 m | 0 | — | esef· 18 Apr 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 1 of at least 6
- score weight coverage: 6.2% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
6% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 1 of at least 6; score weight coverage: 6.2% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | unavailable | unavailable | — |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -3,345.8x | 0 (on a fixed band) | 100% |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial0/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partialunavailable · 0/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ZEGONA COMMUNICATIONS PLC (ZEG.L). Latest full fiscal year: 2023; data up to 2023-12-31.
Figures computed from the financial statements: ROE -2.6%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 1 of at least 6; score weight coverage: 6.2% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Interest coverage: -3,345.8x
Not assessed (insufficient data or a ratio without meaning): ROIC, Net margin, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Current ratio, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 40 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| BMS.LBraemar PLC | 78.3 m | 39.2 | 2.7% | 1.7% | −4.4% | +13% / −11% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for ZEG.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Zegona Communications Plc is a UK company that, as of its 2023 annual report, held no material operating asset and was seeking to acquire European telecoms businesses. Its proposed purchase of Vodafone Spain, announced in October 2023, is a notable case for the European telecoms market, financed largely in euros 1.
SWOT
Strengths
- The company has a formalised governance structure, with audit and remuneration committees chaired by independent directors, and a documented internal control process 1.
- Management completed a transaction it describes as exceptional in scale, suggesting capacity to execute complex acquisitions 1.
- A lean structure with few employees and no assets to run allows focus on transactions 1.
Weaknesses
- In the period analysed the company held no material operating asset, so results depend on future transactions 1.
- The chairman is also chief executive, and the company has not yet appointed a senior independent director, departures from the governance code it acknowledges 1.
- The company has no separate internal audit function and relies on board oversight 1.
Opportunities
- The Vodafone Spain acquisition could transform the company's profile into an operator with its own customers and revenue 1.
- If other European telecoms assets are identified, the structure could be extended based on experience gained 1.
- A commitment to improve governance, including appointing a senior independent director, could strengthen shareholder confidence 1.
Threats
- A delay or failure to complete the acquisition could affect the going concern assumptions 1.
- Exchange rate movements between the euro and sterling can produce revaluation losses on euro-denominated assets 1.
- A tax dispute over an income tax receivable is not yet resolved, and its outcome is uncertain 1.
Risks
- Completion of the Vodafone Spain acquisitionhigh
The deal is expected to close in the first half of 2024, and a delay or failure could affect the company's plans and going concern assumptions 1.
- Currency riskhigh
Euro-denominated assets are revalued into sterling, producing exchange losses that could continue to affect results 1.
- Tax disputemedium
The income tax receivable depends on the outcome of appeals in the state aid matter, which management considers finely balanced 1.
- Concentrated governancemedium
The roles of chairman and chief executive are combined and no senior independent director is yet in place, which could limit oversight 1.
- No internal audit functionlow
The absence of a separate internal audit function could make controls harder to verify before the new asset is integrated 1.
Investment thesis
What would need to be true (bull case)
- If the Vodafone Spain acquisition completes and is integrated successfully, the company could move from a holding without assets to an operator with its own revenue 1.
- Management's experience in large transactions and euro financing already in place could support execution of the plan 1.
- A governance structure with independent committees and formal controls could provide a solid framework for later growth 1.
What would break the thesis
- If the transaction is delayed or does not close, the company could remain without an operating asset, with high costs and uncertainty 1.
- Euro financing exposure could generate repeated revaluation losses if exchange rates move against the company 1.
- Departures from the governance code and the lack of internal audit could reduce investor confidence until the new asset is integrated 1.
What to watch
- Completion of the Vodafone Spain acquisition and closing conditionsfirst half of 2024
- Outcome of the state aid appeals and the income tax receivablenext 10-K
- Appointment of a senior independent director and governance developments2024
- Benchmarking of executive remuneration after the deal closes2024
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the 2023 annual report, Zegona had no operating asset at that time and no customers, its suppliers being mainly professional advisers 1. Its strategy is to identify and acquire opportunities in European telecoms, where management believes it could create value for shareholders 1. The main transaction in the period is the proposed acquisition of Vodafone Spain from Vodafone Europe B.V., announced on 31 October 2023 and expected to complete in the first half of 2024 1.
Governance reflects the company's small size: the board has five members, two of them executive, and the chairman is also chief executive, a practice the company discloses as a departure from the UK Corporate Governance Code 1. The audit and risk and nomination and remuneration committees are chaired by independent directors 1. The company had four employees in the period reviewed 1.
The acquisition is largely euro-funded: the annual report notes euro-denominated assets of 1,187.7 million generated from financing, whose revaluation into sterling produces foreign exchange losses 1. The accounting for these items is a key judgement reviewed by the audit committee 1.
Segments
Vodafone Spain acquisition
The proposed deal is described as exceptional in scale and complexity, and management considers it an opportunity to grow shareholder value 1. Completion depends on approvals and closing, and the annual report also considers a scenario in which the acquisition does not close 1.
Holding activity without operating assets
Until the acquisition, Zegona operated as an investment vehicle without an operating asset, which explains the absence of customers and the small headcount 1. Operating revenue for this period is not reported in the source analysed.
Market context
The target market is European telecommunications, where Zegona says it identifies acquisition opportunities 1. The source provides no external market data; any assessment of market share or competition would need information beyond this report.
For investors, the relevant context is the size of the acquisition relative to the company's structure, which had no operating asset at the end of 2023 1. The outcome depends on the successful integration of Vodafone Spain and on financing terms, neither confirmed in the source analysed.
Trends
- Consolidation of European telecomsmixed
Zegona's strategy rests on identifying European telecoms assets, which could be favourable if such acquisitions remain available at reasonable prices 1.
- Cost of euro financingheadwind
Euro-denominated assets are exposed to exchange rate movements against sterling, which already produced revaluation losses in 2023 1.
- Timing of deal closingheadwind
A delay in closing the Vodafone Spain acquisition could change the going concern assumptions that the audit committee reviewed specifically 1.
- Value creation after integrationtailwind
If integration of Vodafone Spain succeeds, the company could move from a holding without operating assets to an operator with customers and revenue, substantially changing its profile 1.
Competitive position
The source analysed does not identify Zegona's direct competitors or their market shares. The statement that the company seeks acquisition opportunities in European telecoms suggests other investors and operators target the same assets 1.
Zegona's advantage, as described in the report, lies in management's experience and advisers in large, complex transactions and debt restructuring, though these capabilities are not compared with competitors in the source 1.
- Vodafone Group
Vodafone Europe B.V. is the seller of Vodafone Spain, so the group is a counterparty to the transaction rather than a classic competitor 1.
- Other investors in European telecoms
The source does not name other players; the market for European telecoms assets implies the presence of competing financial investors 1.
- Spanish telecoms operators
Vodafone Spain will compete with other local operators, though the source does not identify them 1.
- Transaction advisory providers
Professional advisers are the company's main suppliers and are involved in acquisition analysis, not direct competitors 1.
News & filings
In the press
- Zegona Plans €400 Million Shareholder DistributionBloomberg Markets · 24 Sept 2026 · EN
Annual reports (ESEF)
- Annual report 202311 Jun 2024
- Annual report 202218 Apr 2023
Sources
- [1] Annual report, fiscal year ended 2023-12-31 (ESEF) · SEC / Zegona Communications Plc · 31 Dec 2023
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.