The company has delivered 36% revenue growth in H1. We upgrade our FY 2017 estimate by 18% and FY 18 by 12%, which reflects flat profits in 2018 as we don't anticipate acquired reserve releases continuing, although this may well happen. We look at the business as a new growth earnings stream, to which we attribute 4p per share, and a highly profitable mature business with upside profit potential from acquisitions and reserve releases, to which we attribute 66p per share. This is an emerging g
12 Sep 2017
Emerging growth & solid recurring revenue
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Emerging growth & solid recurring revenue
STM Group PLC (STM:LON) | 57.5 0 0.0% | Mkt Cap: 34.2m
- Published:
12 Sep 2017 -
Author:
Cavendish Research -
Pages:
4
The company has delivered 36% revenue growth in H1. We upgrade our FY 2017 estimate by 18% and FY 18 by 12%, which reflects flat profits in 2018 as we don't anticipate acquired reserve releases continuing, although this may well happen. We look at the business as a new growth earnings stream, to which we attribute 4p per share, and a highly profitable mature business with upside profit potential from acquisitions and reserve releases, to which we attribute 66p per share. This is an emerging g