Adjusted PBT growth of 23% and a gross margin of 15.3% in 2016 continued Midwich’s ten-year unbroken run of growth. Based upon current operations, we expect a 3yr CAGR for adjusted PBT of 11% though with a deleveraged balance sheet and access to finance, Midwich will continue to seek value creating M&A opportunities. With a ROCE of c30% and a progressive dividend policy targeting dividend cover of 1.7x, which implies a dividend yield of 4% by 2018, we initiate with a buy recommendat
10 Apr 2017
A successful debut – more to come
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A successful debut – more to come
Midwich Group Plc (MIDW:LON) | 0 0 0.5% | Mkt Cap: 454.0m
- Published:
10 Apr 2017 -
Author:
Andy Smith -
Pages:
12
Adjusted PBT growth of 23% and a gross margin of 15.3% in 2016 continued Midwich’s ten-year unbroken run of growth. Based upon current operations, we expect a 3yr CAGR for adjusted PBT of 11% though with a deleveraged balance sheet and access to finance, Midwich will continue to seek value creating M&A opportunities. With a ROCE of c30% and a progressive dividend policy targeting dividend cover of 1.7x, which implies a dividend yield of 4% by 2018, we initiate with a buy recommendat