FY24 results were well flagged in the March update, with the adj. loss before tax bang in line with our forecast at £6.0m (2023: £10.1m PBT). As previously flagged, the YoY decrease reflects delays to project delivery timelines on some higher margin projects which are now progressing. Looking to FY25, management is cautiously optimistic. The order book provides 100%+ cover over our revenue forecast and, combined with an improving margin profile, this is expected to lead to a return to profitability in FY25/FY26 (adj. PBT of £2.4m/£3.8m). The shares have now stabilised at an attractive level, trading on a Jan. ’25 EV/EBITDA rating of only 2.4x. We target a 5.0x rating to drive our 67p target price and move back to Buy against an improving outlook.
