Alchemy Telco Solutions, incorporated in Ireland on January 6, 2017, has shown consistent growth in the secondary mobile market. In 2018, Macquarie acquired a 45% stake, while Hong Kong-based Enviro Management Consultants (EMC) retained 55%, forming a structured joint venture. The business has since expanded into the UK, Australia, Hong Kong, Japan, the US, and Dubai. Finsur did an in-depth analysis of Alchemy’s financials.
Financial performance in FY2024
Alchemy reported a 61% increase in revenue for FY2024, reaching €650 million, compared to €404 million in FY2023. Over the past five years, the compound annual growth rate (CAGR) has been an impressive 89%. The US and JAPAC regions were major contributors, with the Republic of Ireland and the UK accounting for only 8.6% of total revenue.
Profitability and operational growth
Despite strong revenue growth, EBITDA remained flat at € 18.3 million, mainly due to rising administrative expenses, including staff increases from 160 to 222. Gross margins continue to be under pressure, but Alchemy has prioritized market share expansion over short-term profitability.
Inventory and cash position
Inventory levels surged by 177%, reaching € 104 million, while inventory write-offs increased to €10.6 million. Alchemy’s cash position improved to € 25.5 million, supported by a shift toward leveraged funding, with total credit liabilities rising to € 36.3 million.
Future outlook and industry impact
Alchemy’s investments in Dubai and the US indicate a commitment to organic growth. The company is positioning itself as a key consolidator in the secondary market by securing large volumes of stock. With an expected revenue growth of 30-37% in FY2025, Alchemy is on track to approach the € 1 billion mark in the near future.
Market
Trade-in
Repair
Refurbishing
