In our detailed research note (dated 14 Feb) we outlined scope for 1) better gross margin guidance, 2) personalisation to eliminate the drag from poor migration of former Fifty Plus customers, 3) a refi to fund Financial Services expansion and reduce RCF debt, and 4) guidance to settle nerves about IFRS9 (bad debt accounting). With these factors having played out, and net bank debt gearing reduced to 0.2x EBITDA, there is more clarity on the valuation anomaly on <9x P/E (7.2% yield), with FCF re ....
04 May 2018
Future ambitions on track vs rating way off course
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Future ambitions on track vs rating way off course
N Brown Group plc (BWNG:LON) | 14.2 0 (-0.5%) | Mkt Cap: 65.7m
- Published:
04 May 2018 -
Author:
Matthew McEachran -
Pages:
3
In our detailed research note (dated 14 Feb) we outlined scope for 1) better gross margin guidance, 2) personalisation to eliminate the drag from poor migration of former Fifty Plus customers, 3) a refi to fund Financial Services expansion and reduce RCF debt, and 4) guidance to settle nerves about IFRS9 (bad debt accounting). With these factors having played out, and net bank debt gearing reduced to 0.2x EBITDA, there is more clarity on the valuation anomaly on <9x P/E (7.2% yield), with FCF re ....