HPS. We will start with an update on where we are and where the market is today. I will then hand the floor to Brahim to go to details of our financial results, and we will as usual finish with the Q&A session. So on the environment and where we are today, we evolve in a very dynamic market with a very strong growth on the non-cash transactions that have been growing at a double digit, 17% and 15% per annum. This is what we expect to see, and this is what has been proven to be in the past years.
The card portfolio of all the cards around the world is evolving at 17%, and likely to continue to grow. The number of wallets is growing as well. So we are really in a very dynamic market and a very dynamic industry. The dynamic of this industry is driven by two facts: the market trends and the technology changes, and also the regulatory changes. I will mention the digitalization of the industry that is going at a very high pace. We have seen big entrants in this industry. I'm talking about the Apple Pay, the Google Pay, et cetera, et cetera. So this is really a huge change in the market and the technological and the digitalization is really very visible.
We have seen a very strong modernization need for modernization of payment systems in the industry. We can see in different markets the decline of the usage of cash and the technology coming in and mainly the cryptocurrencies, especially cryptocurrencies coming in the payment space as well. Plus the need for processing transactions across the world in the emerging and also in the mature markets. On the other hand, we see a lot of regulations coming in with the threats that are in this industry. We are seeing also a lot of regulations coming in from the central banks and maybe related with the open banking.
We can also see a lot of compliance coming in with the general manager on North America and also on the data protection. So, for us, this market trends and this regulations are only opportunities. It's opportunities of change, it's opportunities to have new customers that need modern and efficient platforms to run. The fact that we are in this market for a lot of years has given us the opportunity to be analyzed by different firms, and we have been very proud to be considered as one of the best in class, and not to say the best in class, at least from a product capabilities or product features and so on.
So, today, compared to the big players around the world, HPS has been ranked number one from a product perspective. And on the other criteria, we still need to have some efforts to be on the top of the class. But we will do the efforts, and we will continue our progression on this. So based on those facts, on a market that is growing, on the dynamics that are only opportunities for us, on an international recognition that we have, we consider to have to accelerate our growth. And we built the plan that we have shared with the market already.
Our plan is to be able to have or to finish the 2027 year with a revenue between $220 million and $300 million. That would take us and we will be there with an average growth of between 12% and 17% on our organic growth. We also plan to have an external growth of between $40 to 80 million, with a margin between 25% and 30%, with a recurring revenue of 60% by 2027, and also spread our revenue across the world and not as it is today, maybe a bit concentrated on the Middle East, Africa, and Europe. So this is our plan. We are at midterm, let's say.
We are in two thousand and twenty-four, half of two thousand and twenty-four, and we will see with Brahim that we are in the race of this fantastic journey that we are having. One of the reasons or one of the criteria that has been analyzed by the analyst in the world, our product capability. We have our version four of our PowerCARD, that is the result of a significant work and investment, and we are extremely happy and proud to see that this version is extremely appreciated by our prospects and our customers, and especially Tier 1 customers that are seeing the technology as replying or responding or covering their needs today. This is extremely important.
Once we have released this version and presented to the various prospects that we want, the response has been immediate. The result is that on the H2 of twenty twenty-four, we have more than a pipeline, but we are forecasting to have an average sales that is multiplied by 3.5 on the previous three years. This is extremely interesting, very promising for us, not only the level or the volume of sales has exploded, but it is also the quality or the size of the customers that is very interesting, and among the customers that we have signed or that we are about to sign, four of them are part of the top 100 banks worldwide.
So this is extremely interesting. It gives us another recognition in addition to the analysis, but it gives us the recognition of the market, and by the top banks in the world. This will translate in about $55 million built on what we have already on the next two to four years, and with a run, an annual run of $8 million recurring revenue that will kick off in 2025 and 2026. So what I was saying before on the market, the dynamic and the product is today translated into sales.
We have unfortunately witnessed a delay in the signature of this contract that had an impact on our H1 of 2024, because those sales have a limited revenue on our H1 2024. The other effect on this and this will be explained in even much better words with Brahim is that if those sales that we have made were on a license and service on-premise model, so our margin, instead of failing by 5.6%, would have increased by 24%-25.4%. This is important to understand where we are.
We are in a market that is very dynamic, growing, a product that is recognized, a dynamic of the market that is only opportunities for us, a recognition by the analysts, but also recognition by the top banks in the world. And this is giving us an increase, a marked increase, that our revenue would be much more high and our margin will be much more higher in the coming years, because of the contracts that we have signed and because of the model, the SaaS model that is much more profitable than the other. So that is on the product side, on the sales side. And to accelerate, we have the inorganic growth.
So the first line was on the organic growth that has been confirmed by a huge sales volume that will be visible in the coming months. And on the inorganic growth, we have closed the acquisition CR2 is, most of you know, a digital banking platform that is sold across the globe. And they are serving more than 90 customers in 60 countries. So the logic or the rationale behind this acquisition is, first of all, increasing our footprint in the payment space and the financial sector generally speaking. The second objective is the geographical coverage.
That is also an important fact for us, since CR2 is very present in regions where we are not, and we are present in regions where they are. From a financial impact, there are two immediate effects. The first one is the earnings per share that will have a positive impact since the valuation of CR2 was a bit less than the HPS one. And there is also an immediate impact on the revenue, and we will be able to recognize between EUR 25 and 30 million without the growth on the group revenue coming from the CR2 acquisition.
From the synergies we have identified and we are working with the CR2 team on two types of or two aspects of the synergies. The first one is the revenue. The first one is to offer the SaaS or the processing capabilities that we have started a couple of years ago at HPS, and we are starting the recurring revenue, the backlog, which is the CR2 product on SaaS mode, and this will accelerate the growth of CR2 and also the margin. We are also having cross-selling capabilities or cross-selling opportunities, sorry, on both sides by offering CR2 products and HPS products to the customers of both firms.
We also have, because of the bigger footprint on the functionality, but also on the geography, the ability to be more exposed and be able to have more success rates. And also on the revenue is to make sure that our roadmaps are materialized and that we are not investing in both. There is a virtualization or rationalization of the action. So a lot of synergies on the revenue side and also a significant revenue on the synergy, sorry, on the operating side. The strong cost rationalization on so many aspects will ease the increase of the EBITDA of the two services.
There is a very strong fit on the cultural aspects and the DNA of the both companies. Very strong and very long relationship with all the customers that CR2 have and HPS have. And also on the innovation, there is a strong DNA on the both companies to leverage that we want to leverage on to offer better products. I will leave the floor to Brahim to continue this presentation on the business and the financial. Thank you, Brahim.
Thank you, Abdeslam. Good afternoon, good morning, everyone, and thank you for your attendance to this meeting. Before diving into the details of the figures, I would like to take some time to review the key figures for this H1, and better understand the ongoing transformation within HPS and its implication on our figures and numbers, and see how HPS is, in 2024, positioned compared to the objectives that we established at the beginning of the plan. The figures as reported at the end of H1 represents a growth of revenue by 2.5% to achieve around EUR 580 million.
An EBITDA margin that fell by 5.6% to EUR 108 million , with the EBITDA margin at 18.6%. The backlog fell by 1.4% at EUR 810 million , so more or less same level as the beginning of 2024. With the different contribution from the different activities. So we have the payment activity that cover all our payment solution on-prem or in SaaS. That is stable compared to last year. The switching activity that continued to grow, and the testing activity that fell by 6.3% due to a very hard French market for this activity.
So when we have a look at this figure, we know that we have faced some longer commercial negotiation timelines, particularly with the major projects and Tier 1 banks, and which have resulted in delays in sales during twenty twenty-three and the H1 also twenty twenty-four. This has led to a slowdown in growth, but it's not the main reason for this situation. One of the main objectives of HPS for its future is really to transform the activity from an on-premise business and one-off business to a more recurring business with the SaaS offer that we offer to our customers.
When we started this transformation four years or five years ago, we have introduced the SaaS with the first customers in Africa, and today we noticed that there is a real acceleration of SaaS on the real demand of our SaaS offer in the different regions where we act. This acceleration has been last year translate into 100% of sales that has been made in SaaS, and today more than 60% of the pipeline opportunities are in SaaS. There is a real strong growth of this activity on our business.
This activity has an impact on our margin first, and also on the growth that we can recognize in our figures. Perhaps to give you more detail on how this is impacting our figures, let's take two examples. One single project that can be sold to our customers on-premise or in SaaS. In the on-prem model, we will sell to this customer a one-off licensing fee, with also professional services to build the platform. After that, when the customer will go live, we will have maintenance that is more or less 20% of the licensing. On the SaaS model, it's exactly the same effort and the same professional services that we deploy to implement the project, but we will not sell any licensing.
The revenue that will be recognized during all the implementation of the project will be less than by 50% compared to the on-premise. But after the go live, the contract or the customer will generate a run fee for the SaaS that is much more higher than the maintenance, compared to the maintenance fee on the, for the on-premise model. And approximately, the run fee is compared to the maintenance, four times, the revenue coming from the maintenance. So if we translate this into graphs, graphics, to see the impact on the revenue, if you take the same project, on-prem or on SaaS, and you compare the cumulative revenue over the years, so you see that the project, after three, four years, will start to generate more revenue for HPS.
And after five, six years, the gap is much more bigger, as much as we continue to run the business for this customer on SaaS. Now, if we want to see this impact on the EBITDA, we take another example where we made a simulation of HPS at the beginning of the transformation, where we were generating more or less 20% EBITDA margin, and we started to sell SaaS projects. And we took the assumption that we sell 60% in SaaS and 60% on-premise. So the blue line, we show the EBITDA evolution.
If we sell 100% of our projects on-premise, and we see that the EBITDA margin will be more or less around 20%, with perhaps small growth due to bigger customer, but if we sell 60% of this project in SaaS, we see that there is a deterioration of the EBITDA margin, and after a couple of years, this EBITDA will recover and will exceed the margin that we can have with the SaaS model with the on-premise model.
So the transformation that HPS is running today is really profitable for HPS in terms of sustainability of the business, in terms of recurring revenue that we create, but also in terms of profitability that will be much more higher compared to the on-premise model that we were selling exclusively in the past. So now, if we adjust our key figures based on the assumption that all the SaaS projects that we sold in the past were on-premise, so the figures will be very different. So the growth will be in 2024 at 8.67%. And the main impact is on the EBITDA.
So the EBITDA would grow by 25%, compared to a sale of 5% in the figures that have been reported. Now, I would like also to take some time to review where we are compared to the main objectives of our Accelerate plan. So I recall that we have four main axes or objectives. So the first one is to increase the growth and the revenue by more or less 25% per year, based on organic and external growth, to reach by end of 2027 between $220 to 300 million. We have also the objective to increase the margin from 20% to 25%, or between 25% to 30% by 2027.
To increase our recurring revenue from 50% to 60% at the end of 2027, and to expand our geographical presence to be more sustainable, and to address specifically the Asian and American markets that are the most important and dynamic in our industry, so we are working every day to achieve this objective. We have different initiatives that support this initiative, and we would like to see where we are today in 2024, and if we have a look to the first one.
Despite the different elements that I explained in the beginning about the impact on the revenue, if we include in twenty twenty-four CR2 figures on the full year, not only on half year, we see that the revenue in twenty twenty-four, even if we continue on the same growth for the full year, we should be at the expected level compared with our Accelerate program. The impact or the positive impact of SaaS will start to generate additional revenue starting next year. We have also all these big or major projects that are under signature on the H2, that will also create or increase the backlog and will generate more revenue in 2025.
So we believe that in 2025, the revenue should come back in at a level in the mid-range of the target that we have for Accelerate. On the EBITDA margin, the evolution is consistent with what we've explained about the impact of SaaS transformation on our figures. So we believe that, thanks to all the projects that are under implementation and also the one that we are expecting to finalize at the end of the year, we believe that the margin expansion should return in 2025, but should also accelerate after 2025 to reach the level that we were expecting in our Accelerate program.
On the other objectives, so, we are not far from the objective for the recurring revenue. But with the acceleration of SaaS and the recurring revenue that will be generated by the existing and future projects, we believe that this recurring revenue will accelerate, and we should be at the level expected at the end of the plan. In terms on the geographical expansion, we are slightly ahead compared to our plan, which is a good news because we are more visible and more exposed in these two region. The main contract that we will sign in the H2 of twenty twenty-four are essentially in the Asian region and European one.
We believe that this share of America and Asia will increase. And our office in Canada will also help to grow faster in the American region. And we saw the success that we had last year and this year also in this region, in North America and in the Caribbean. Now, if we go into the detail of what were the achievements of this H1 of twenty twenty-four, we had a very strong business and strong achievements on our SaaS offer. Last year, we have sold our offer to one of the main banks in Canada.
So the project has been deployed for the first phase, and the platform or the SaaS service will start in this month, in October, based on the cloud platform on AWS, and also run by a local team that is based today in Montreal. So we have built all the platform, we have built the team and trained the team, and the SaaS revenue will start on Q4 2024, and will increase with the other phases that will be deployed at the end of this year and next year. We have also successfully deployed our first SaaS customer in US. So this customer is also based on the cloud platform on AWS, and this platform will be managed also by our Canadian team.
So we are utilizing all what we've built in Canada with this team to manage all the business that we have on SaaS in America, so North America, but also Caribbean. So in H1 of 2024, we have sold three new customers in Jamaica on SaaS. So we still benefit from these markets with very strong opportunity that were present in Jamaica. So one of these customers has been deployed on the H1, and the three of the SaaS services started in H1, and the two others are still under deployment and should also start at the end of this year.
All these customers in the Caribbean, in America, are managed by our Canadian office. On the SaaS also, we have successfully deployed our first customer in Australia. As a reminder, we sold last year a SaaS contract to an Australian bank, and we deployed the platform on, again, another cloud platform on AWS in Australia. And this platform today is managed by our team here in Casablanca, but as we'll go live at the end of the H1 or in July, if I remember well, we have also signed a new SaaS contract in Australia with one of the main banks in the region. This bank is a part of the top 100 banks worldwide.
We are today building a local team in Australia that will manage all our business in the region in Australia. This customer is a very large one. The deployment of the platform started, so we believe that the revenue coming from SaaS coming from this customer will start at the end of 2025, but will be fully deployed by end of 2026. For the on-premise, we have also successfully deployed some major projects. The first one is this largest oil company worldwide that chosen HPS technology two years ago. We have successfully onboarded on the platform different some new countries. We have onboarded Hong Kong, Macau, Malaysia, Philippines, Thailand, and Singapore on this platform. We will continue to deploy the other countries.
So we will have on this platform, more or less thirty countries worldwide, including the U.S., Canada, and some other big regions in Asia. We have also on one of the largest bank worldwide, that we started the project with them four or five years ago. It was in 2018. We have successfully deployed our first credit card issuing module. So in the past years, we have deployed the debit module for card, and this has been deployed in several countries, and today we are deploying the issuing module for credit card, and we have deployed in Indonesia in the H1. So this creates again a very huge potential additional revenue with this customer, whereas as long as we continue to deploy the platform globally.
So if we look at the detail of our figures on the payment activity, we see that all the segments of revenue are growing well with the upselling. We see that we have a strong growth on upselling with our existing customers that are adding new features or migrating to new version of our PowerCARD platform. We see also that we have maintenance that continue to grow thanks to new customers that are entering into the maintenance phase of their sale life cycle with HPS. We have also revised the maintenance fee between 2023 and 2024, and we see also the impact of this revision on our fees. Before discussing about the project implementation, we have also successfully started the BIN Sponsoring activity.
So we signed last year or early last year first contract to be the BIN sponsoring of one customer in Middle East. So thanks to this activity, in fact, we are able to address neobanks or fintechs, and offer them complete services to be able to issue cards and to run their payment activity by offering them our SaaS platform, but also BIN, that will make them able to issue new cards on the market.
Even if the revenue is still very, very low, it's very important first because we want to transform the HPS activity from technical vendor to a service partner that will offer more than the technology, but also additional and value-added services to our customers, and to make them more sticky to our technology. Now, if we look to the new product implementation, so the evolution is aligned with what we explained in the beginning. First, we have some delay of sales during 2023 and H1 of 2024, due to a very long selection process with the two banks, and this has created a lack of revenue for this condition.
But we have also the impact of SaaS, that also, is impacting our revenue recognition, as explained, in the previous slide. The good news is that this PowerCARD Version 4 and the technology that today we have built is very visible worldwide. And the visibility of this technology starts to bring value to HPS. So we expect to have new orders in H2 of 2024. So today we have four of the Tier 1 banks worldwide, so four of the top 100 banks worldwide have confirmed the selection of HPS.
So one of them or two of them already signed the contract, so there is no more risk on the, on these two customers, and the others are in the process, and the process should be finalized in between October and beginning of December. So these new orders that are significantly higher compared to the average sales of the previous years will generate or will increase significantly the backlog at the end of the year, and will lead to an acceleration of revenue and profits in 2025 and 2026. So this new customer, so as explained, we have four of them that are ranked in the top one hundred.
One of them is this Australian bank that we signed in July, and delivered. This will be the largest customer of HPS in terms of revenue contribution. So it will be on SaaS. It will be 100% recurring and with much more impact on our profitability and margin. So this is a really a very, very important achievement of HPS for the signature of this contract. We have also two other banks in Europe and one bank in Asia that confirmed the choice of HPS. One of the banks in Europe already signed the contract. The other under finalization, and the risk is very low to not finalize this before the end of the year.
All these three contracts are on-prem, so this will also help to balance between the impact of SaaS, the transformation of SaaS on our figures, by more immediate revenue on the figures. So, it's a good compromise between the long-term revenue and profitability, and also less impact on immediate revenue and on margin. And beyond or more than, in addition to these four banks, world-ranked worldwide, we have also one of the largest banks in South Asia that is expected to sign before end of 2024. And if this one is achieved, it will be one of the largest on-prem contract in HPS history.
So it's a very large bank, and it will also help HPS to generate and to accelerate the growth in 2025 and 2026. So, because all this large signing will take place in Q4 2024, we will have a contribution to revenue in this year that will be limited, but the backlog will significantly grow by the end of the year and will contribute to the growth of revenue in 2025 and 2026. That was for the payment activity. So if we look to the switching activity, so we continue to invest and add new features to our platform to add or to support the growth of the Moroccan market in terms of payment.
So we have onboarded different new customers, so Citibank in Morocco, and Shein, which is a B2B e-commerce platform. We have deployed our tokenization offer so to make all this Apple Pay, Google Pay available in the country. So we have deployed our HPS tokenization solution for all the onboarding and all the Visa tokenization, well, for doing the tokenization itself, and this is in the framework of the partnership that we signed with Visa to use it. On the mobile, so we continue also here to deploy different functionality to help with the increase of the mobile in the country.
At a more global level, so on the platform of the switching, we are building currently a full platform based on AI technology. We are supposed to launch a first proof of concept that will be tested with some members in this month, in October. We believe that will be something that will add a real added value to our community here in Morocco, and will help also to increase the payment activity in the country. If we look beyond twenty twenty-four, we believe that there is still a very huge potential of growth due to a very low use of cards and mobile payments in Morocco.
Today, in terms of payments, cards are used on average five times per year. This is due to the habit of consumers, but also to a very, very small network of merchants that accepts the card payments. There is a recent decision by the Central Bank in Morocco, in the past one or two weeks, to remove the acquiring business from the CMI. That was one of the largest acquirer in Morocco, having more than 80%-95% of the market. This will lead to an important change in the market, and all the banks will probably position themselves as acquirers.
So this will lead to a multiplication of players and with this, probably the market and the business. So we believe that in terms of of volume and revenue for HPS, this is something that will create more opportunities for our switching business. So if we look to the volumes since a couple of years, so we continue to have a strong growth on payments, on withdrawal, and on e-commerce, but we are still at the levels that are very low compared to other markets at the same level of HPS.
We believe that all the initiatives taken by the banks, by the new EDP, and also by the social bank to promote and to boost the HPS payment will help to accelerate this business and the business in the country. Now, I propose to go into the details of our figures and costs. We have achieved the H1 with the very stable costs for human resources.
So even if the efforts and the evolution of the growth of the production is there, and we have been able to maintain our costs for HR at the same level as last year, with replacing also some external resources by internal resources. So we have started to limit the use of external and to try as much as we can to internalize all these costs within HPS, to minimize the cost, and also to gain in terms of efficiency and productivity. Where we have increased our costs, so we have, of course, on sales and marketing costs. So we see that the resource has increased by more or less 70%.
If we compare this to the achievements in terms of new sales and specifically in twenty twenty-four, this cost is justified by all the efforts that we've made to support the launch of PowerCARD Version 4 and to capture all the market opportunities. We also saw the result of this, where the new order that we expect at the end of twenty twenty-four should be in more or less 3.5 times higher than the recent average of the recent years. We have also travel expenses that have increased due to the acceleration of product deployment.
Also to support the sales efforts, but also because we are present in different countries, probably in more or less close to Morocco or HPS location compared to the past. So today we have customers in Australia, customers in the Americas, in South Asia. So all the costs of this travel has increased compared to the past. On the other external costs, so the growth is mainly all the costs to enhance our SaaS capabilities that we are building since one or two years. So we have built different cloud platform on AWS, so in the US, in Australia, and also in Asia.
So all these capabilities are here to address and to capture the SaaS opportunities that we face in this region. We have also enhanced all our security capabilities to reach the highest standard levels for this kind of Tier 1 customers. And all this has a cost that will be neutralized on the different platform and the different customers that we will bring on board on our platforms. We have also, on our depreciation and amortization, we have also taken increase of our provision on receivables. So this is mainly due to some withholding tax on some investors and some customers.
That was not expected, and this is on the decision with this customer, and we expect to solve this by the end of twenty twenty-four. So due to our time, thanks to all this to discuss, so we have been able to maintain our EBITDA margin at 18%-19% compared to last year at 20%. So it fell by 5.5%, which is a very strong achievement taking into consideration all the transformation that we are running today for SaaS, but also through all the investments that we are running to increase our SaaS capabilities and to deploy and to accelerate the deployment of the projects.
But if we try to look at this EBITDA margin differently, and to see what would happen if all the projects that we sold and deployed were in on-premise, to compare the previous margin to the new one on the same scope with the same level of deployment. So we would have an additional revenue coming from the license that is not recognized in fact, around MAD 35 million more in advance. What that would improve the EBITDA by the same amount, because there is no additional cost for the on-premise model compared to the SaaS. And the EBITDA margin would have improved by 4 or 6% to reach 23% compared to 20% last year.
So, EBITDA would go by 25% compared to last year at the same period. If we analyze the cash flow, so we have maintained the same level as the beginning of the year. So this has been made possible thanks to the cash flow coming from the operation. Even if the cash or the SaaS model is generating less cash than the on-prem model because of non-recognition and non-invoicing the license to our customers. So in during the acceleration of transition like this from the on-prem to SaaS, there is necessary an impact on cash that will not be recognized and collected as far as the on-premise model.
We have, for the rest, regular payment of loans contracted to finance our acquisition of ICPS and IPRC, on the financing part and the low level on investments. So that explains how we maintain our cash position at the end of the H1. Last point is the backlogs. Here again, the backlog is maintained at the same level compared to the beginning of 2024. We have this delay in sales in 2023 on the H1 that has impacting the backlog at the end of June. But we have also the acceleration of deployment of the main contract that is contributing to lower the backlog growth compared to the previous years.
Thanks to the sales that we are expecting on the H2, we believe that this backlog will increase significantly at the end of the year and will contribute to the rebound of growth in 2025 and beyond 2025. What is important also is to note that this backlog, year after year, is becoming more recurring and more stable compared to the previous year, which is in line with our strategy and the main objective of HPS to conduct this transformation from on-premise to SaaS.
So, to conclude this presentation, I would say that while the initial impression from the figures may be disappointing, the reality is that the execution of Accelerate and the transformation that the group is undergoing are extremely satisfying for HPS. And we believe that we are moving faster than what we were expecting. So the significant investments that we've in research and development and innovation aimed at building a platform ahead of other players are now bearing fruit, and the market feedback is excellent, very positive, coming from very large banks.
Proof of this inclusive acceleration in sales is the increasing acceleration of sales in the H2 of twenty twenty-four, and particularly with the Tier 1 banks, and their interest for the PowerCARD Version 4. The second one is this SaaS transformation, which is one of the major objective of HPS, which is happening much faster than what we had imagined at the beginning. And although this has a short-term impact, it's a very good news for the future and for the future of growth, and revenue opportunity and margin. And will increase the resilience of the business and the profitability of higher margin. So we believe that this twenty twenty-four H1 and twenty twenty-four full year-...
Even if the figures do not show this enthusiasm that we have, we believe that is really aligned with what we were expecting with our rate, and that is very, very good news for the future of HPS in terms of revenue, margin, and sustainability. I propose to move now to the Q&A session.
We will now begin the question and answer session. Webcast viewers may submit their questions in writing via the relevant field.
Okay, so the first question from Hisham from Bankster about external growth. So the question is, when the next acquisition in which activity, and what is the size of this acquisition? So at this stage we do not believe that the objective is not to achieve any new acquisition this year, twenty twenty-four. CR2 is a very interesting and strong achievement in terms of M&A. So with CR2, we are at the level and even exceeding the level of our objective in terms of M&A.
We need to take time to digest and positively incorporate CR2 in our business and in our strategy. We are working on different targets with our investors, investment bank. We have different discussions that are undergoing, and we believe our objective is to be able to achieve something new in 2025. We are working with our team, with the investment banking team, to achieve this. The size we will be in the same levels as what we achieved with ICPS, with CR2, so between these two targets.
So the objective is really to be at the end of twenty twenty-seven, between EUR 40 million to EUR 80 million revenue coming from these two targets. Second question, still around the M&A. What is the financing for CR2, and do we expect or want to raise funds from the market? So the financing for CR2 is 100% from our bank partnership partners. So it's a classic bank loan to finance CR2.
The market is something that is possible under analysis, but today the decision is not yet taken.
On the third question, is there an impact on the central bank, on the competition council decision on CMI and not have an impact on our activity? Directly, no, but we believe that this decision will only increase the volume of transactions. We believe that more competition in the market is always very healthy. On the acquirer switch impact, we believe that we will see an increase of the transactions, and this will be a positive impact.
Next one from David Ashmore. So for the fiscal year results, particularly the four banks that have closed and confirmed these deals, this new order higher than the average SaaS, but this means that we can expect the fiscal year revenue to be in line with the 25% CAGR. So no, as explained during our previous meetings, so the recognition of revenue is linked to the deployment of the project. So when you have a project of 100, when you deploy 10%, you will recognize 10% new revenue. If you deploy 50, you will recognize 50.
So because these deals will occur in Q2 2024, we believe that the deployment rate will be at a low level for all these big banks, and it's a very large bank, so very complex project. So we will not be able to achieve a strong deployment in three months. So the impact will be mainly in 2025 and 2026. And for the ones that will be on SaaS, it will be after 2026 by starting to deliver such revenue in our figures. So no, the sales for 2024 are very good news, but without a strong impact on 2024 figures. Next one is from Hisham, about the growth of provision in H1.
I think that we explained this during the presentation, so I will skip this one, and if it's not clear, please re-ask the question. Okay. Next one from Sarah's Message. When do we expect to consolidate CR2 in our figures? And what are the expected figures for 2024? The figures of the consolidation will occur at the date of completion. That was in the beginning of... Yeah, we will consolidate four months, so before that, the very beginning of September. The full year of CR2 in terms of revenue is more or less EUR 25 million . We should have the third of this.
So the impact on 2024 should be around EUR 9 million in addition to our 2024 organic growth. Do we have concrete targets for our external growth? Yes. So, as probably disclosed last year, we are working with the very large investment banking network that is helping us to find the right targets that are aligned with the HPS strategy. We are today working on several targets between 10 to 20 targets. Some of them are at a very advanced level, some of them at the beginning stage. So yes, it is real concrete targets that we are working on. And we believe that this or one of them will be achieved in 2025.
Do we expect to change our dividend policy? Not at this stage. So we have built our plan even with the CR2 acquisition to maintain our dividend policy. If there is any change in the future, something that will be shared with the market before application. Next one is from Rashid, Société Générale. What is the impact of the dollar on our revenue in 2024? So at the end of the H1, the impact of the currency is very low. For the end of the year, we do not expect a strong impact on the revenue.
The main impact on twenty twenty-four is really the transformation from the on-prem to SaaS that is impacting the growth of revenue and the margin. But this year the currency is not something that will create too much noise for us. Okay, next one from Ali Nasser. Can you please explain how do you define order intake, and how likely will this convert to sales? Can you also explain how this translates to the 8 million incremental revenue run rate in 2025, 2026? And will this be H2, 2025 weighted, or do you begin to see revenue flow in for SaaS 2025?
Finally, on the margin, can you explain to us the primary reason why you expect margin to be higher in the five, six of SaaS contracts compared to on-prem model? Okay.
So I'll thank you, Ali, for your question. The conversion of this prospect into sales is actually happening. So some of the prospects have already signed their contract, but they have signed it on the second semester. So on the volume of business that Brahim has mentioned, most of it is already signed, and especially the SaaS ones. So we expect to see this happening before the end. How we see the incremental $18 million of SaaS? This is the minimum billing that we have on these contracts. So as you know, on the SaaS, we have a minimum that is keeping the platform live.
We have the add-on that will be volume-based. So the $8 million are the ones that we see coming in, in addition to what we have already. Are we expecting to see some revenue from this contract in 2025? Yes, but this will be on the build side, because those contract things have started to be built already in this, in 2024. But most of the build will be executed in 2025. On the margin side, this is due to the mutualization. The more we have SaaS customers, the more we mutualize the resources, and the more the margin will be there.
These contracts that Brian mentioned are really volume-based, and they are themselves mutualized, if I may say, because of the volume of traffic that we will be handling there.
And to complete, I need to complete the answer of Abdeslam on the comparison of margin between on-prem and SaaS. So when you take these two contracts, you have a phase where you have a one-off revenue, which is during the implementation. So on the on-prem model, this one-off, because it includes also the license, is much more higher compared to the SaaS. In average, it's two time the one-off that we will have on SaaS, where on SaaS we have only the professional services to implement the project. But when this one-off is behind and we start to have the platform live, the on-prem model will generate only maintenance revenue, which is 20% of the license.
When the SaaS model will generate SaaS revenue, that is more or less in average based on our statistics and offers, four times the annual maintenance of the on-prem model. So the revenue with the very low additional costs due to the platform that is mutualized to the team that is running this, the revenue is much more bigger than the on-prem model of the maintenance, and the consequence is that the margin is much more higher. And this is something that is visible in all the businesses where you have pressure that moves from license to SaaS. And this is mainly to increase revenue and margin, because it's much more profitable. Okay, next one from Lanian.
What is the acquisition price of CR2 Limited, and what will be the contribution of HPS net profits over the next three years?" So we did not disclose the price, and we will not do it. The contribution in terms of net profit, so CR2 is more or less at the same level of EBITDA margin compared to HPS. So we should have an EBITDA that will be around 20% without taking into account all the synergies that we can build together. So based on a revenue of EUR 25 million , we can expect to have around EUR 5 million EBITDA margin. Okay, next one from Youssef.
With the recent expansion into new geographies and the acquisition of CR2, what are HPS strategies for integrating different regional market needs and regulatory framework, improving product development and service offering? How do you plan to maintain agility while ensuring a consistent value proposition across diverse markets?
Today, the exposure that we have on the various markets, we already integrate a lot of regulatory constraints or regulatory rules. Nevertheless, we are not yet fully deployed worldwide, because this is our aim at the end of the day. Today, the way we handle it is by taking advantage of the very high parameterization capabilities that we have in the platform. There are some markets that we are able to get in without any changes on the platform itself.
What we have witnessed during the last year is that we are now required to get some requirements, some regulatory requirements on the service side, and one of the examples when we have penetrated the Canadian market and also the Australian market is that we need to have a local presence inland to be able to comply with the differences. From a technological part, the pain to comply with the local regulations is less and less painful because of the maturity of the platform.
Now, moving to SaaS is pushing us to have a local presence for the core or for the sensitive operations, where people will be able to see the data of the customers to have a local presence, and this is what we have done. Luckily, on where we are now present, the volume of business is high enough to not only cover, but is... All this implementation that we have done in Canada and in Australia are fully covered finance and margin, generating margin on where we are. How we are keeping this and how we want to see the future?
We will obviously not be present everywhere, but we have chosen the places that from where we can cover more than the country, only the country where we are. The example I think was given by Brian previously, the example of Canada, is that from our office in Montreal, we are serving Canada, our customers in the U.S., and we are moving our previously hosted customers here in Morocco from the Caribbean. That will move to this, that will be driven from the Montreal office. And also, from Sydney, we are handling our Australian customers and also our New Zealand customer. And if we have any other customers, and we are working for that, in the region, in the Australian region, this will be handled from the Canada...
From the Australian market.
Next one from Raja. So is the weaker SaaS EBITDA margin related to on-prem due to only the absence of upfront fee, or is there any other reason? The cost of deployment of both solutions is the same. Yes, so the impact of the EBITDA is mainly due to the absence of license revenue during the implementation phase. So the SaaS EBITDA margin is weaker than the comparable on-premise during the implementation phase. After that, the margin is much more higher. So it's not the only point that explain the weaker margin. It's also during the beginning of the transition to SaaS, there is also all this cost to build our SaaS offering by building platforms, building or also enhancing our security, et cetera.
So there is a lot of efforts to build the team, to train the team, to build the platforms, to implement on cloud platform or HPS platform. That is also something that increase the cost, but this cost is first over time, but also it will be neutralized on different customers. So the main reason is due to the absence of upfront fees for license, but there is also some other costs that explain the impact on the margin. The next point from Raja is: What is the reason for the effective tax rate increase in H1? So there is two points.
The first one is, as explained last year, the decision from the tax authority in Morocco is to increase the tax rates from the previous rate to 31%, I think. And this is increasing year after year. So we are facing in 2024 a new increase of this tax rate. The second point is that all the provision on receivables that we have on the H1, that is higher compared to last year, is the cost that is not deductible from the taxation. So the result that is taxable in reality in the H1 2024 is higher than the one in 2022.
If you reincorporate all this provision on receivables, you will see that the taxable result is higher. Can you give guidance to revenue growth and EBITDA margin for twenty twenty-four? So as explained during the presentation, we do not believe that the sales expected at the end of twenty twenty-four will have a strong impact on twenty twenty-four. So we believe that the growth should be, if we exclude CR2, at the same level as what we've delivered in the H1, and the same for the margin. Next one from Raja. Can you please share more KPIs on Tier 2, especially PNL?
Yeah, so we shared during the Q&A session the revenue and the EBITDA margin level. At this stage, I do not have more detailed figures, but of course, if needed, we can set up a call to share more details about CR2, and it's the same for all the items. Next one, can you please explain again why provisions were up quarterly in H1? Okay, so perhaps the explanation that I provided during the presentation was not clear.
So we face in some regions where we sell our products from local some withholding tax where the tax authority in these countries impose to the customer to withhold from the payment of our invoices some tax that is around depending on the country it's 10%-15%. With all our customers, this withholding tax is in general paid by the customer itself. So he will pay, and the HPS will get all the cash of the invoices from the customer. In some situation, and this is what happened this year, the customer retained the withholding tax to pay the tax authority. So we are not aligned in terms of the understandings and the application of the withholding tax.
So this is why this amounts are on the provision of receivables, but it's still under discussion with our customers to solve this difference. Next one from Dan. You've mentioned that Tier 2 acquisitions should have 25-30 million top line contribution, and that there should be an EBITDA margin expansion of the cost virtualization. Can you please quantify the EBITDA impact? No, not at this stage, Dan. So what we can say is that the EBITDA margin is around the 20% for. So the impact on our EBITDA without any mutualization is 20% of 25 in addition to our EBITDA.
We are working with the Tier 2 on all the mutualization and all the integration effort that we have to build together to have them onboarded on our strategy and infrastructure. So we would be able to share in the coming months clear view on the cost mutualization and the impact on the margin. But at this stage, I don't have the answer. Next one from Yemia. When will the $80 million, so MAD 800 million backlog be transformed into revenue? So it will started in 2025. Will be stronger in 2026 and probably full in twenty...
At the end or H2 of 2026, it will be fully deployed. So this is my view on this project deployment. Of course, it can be sooner or later, depending on the pace of development of this project. But we can expect to have 60% in 2025 of this $80 million. Another 25% of this $80 million in 2026, and the full $80 million in 2025. But it's a very high-level assumptions. Do not take it as a commitment.
We still need to go into the detail of the project plan with the customer and to achieve the deployment of this project. Next one from Emilia. What is the license backlog amounts? What is the SaaS backlog amounts? I think it was clear on the slides. From memory, I think that the backlogs on SaaS is MAD 250 million. On the project that includes professional services, but also license is MAD 150 million.
So you have a SaaS which is two hundred and fifty that represents one year of revenue, and on the license it's a one-off which is one hundred and fifty that will be deployed in two thousand and fifteen in twenty thirty-five and twenty thirty-six. Last one from Ahmed. How will the SaaS model impact the company's working capital intensity in light of the cost recognition difference between license and SaaS? Okay. So it impacts more working capital constraint during the beginning of SaaS and during the acceleration, because you need to invest more and you have less revenue compared to the on-premise model.
But when you start to generate enough SaaS revenue, and when you stabilize this growth and you enter into production with these customers, in fact, the margin is much more bigger. The revenue is invoice-able every month compared to the on-prem, where the payment terms are very different. So the tension on cash when you start to... The production on our SaaS is much more beneficial for HPS. This was the last question. So I would like to thank you all for your presence, and-