The Y/E update signals PBT will be in line with expectations at c£12m. This will come as a relief to investors, even if the underlying position is slightly flattered by accelerated Licensing income, as reflected in slightly lower net cash. What may disappoint is FY25 guidance being tempered 7%, due to cost inflation (mainly wages). However, this still assumes no better than flat volumes, a scenario which we argue holds upside if activity improves in H2. We stay at Buy.
08 Feb 2024
In-line FY24 update, but caution on cost mitigation
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In-line FY24 update, but caution on cost mitigation
Sanderson Design Group PLC (SDG:LON) | 108 -1.6 (-1.4%) | Mkt Cap: 77.1m
- Published:
08 Feb 2024 -
Author:
Matthew McEachran -
Pages:
3
The Y/E update signals PBT will be in line with expectations at c£12m. This will come as a relief to investors, even if the underlying position is slightly flattered by accelerated Licensing income, as reflected in slightly lower net cash. What may disappoint is FY25 guidance being tempered 7%, due to cost inflation (mainly wages). However, this still assumes no better than flat volumes, a scenario which we argue holds upside if activity improves in H2. We stay at Buy.