AIM-listed firm said EBITDA would be at least £3.6m, 20% higher than broker estimates
Companies: Kinovo PLC
Shares in AIM-listed gas, heating, and electrical Group Bilby jumped 13.6% early this morning after the Group told investors that EBITDA would be at least £3.6m when reported in June as extended contracts had fallen into the current financial year.
The AIM-listed group, which is a holding company for gas, heating, and electrical firms, said: "a number" of existing clients had broadened the contracts that they had with Bilby companies before the year end. This resulted in greater EBITDA than previously expected.
Northland Capital Analyst Ryan Long said the update indicated progress and demand for Bilby’s services, with its reputation in the social housing and building maintenance market a factor that contributed to contract extension from clients:
"FY17 (March) EBITDA indicated at £3.6m is 20% ahead of our estimate, as is cash. On our current FY18 outlook Bilby is trading at 5% EV/EBITDA discount to a weighted average of its peers, and 16% PE discount."
The Group also announced that cash reserves had increased to £2.1m due to operational efficiencies.
