Despite ongoing supply chain disruption, the Group has reported results in-line with expectation. Adjusted EBITDA from continuing operations improved slightly to £12.7m with the Energy divisions growing by c.15%. Increased investment in the Medical division and the pivot away from 3rd party component manufacture resulted in an offsetting c.£1.5m EBITDA movement. The Group enters FY2023 with a robust order book that already provides 90% coverage for FY23E and 45% for FY24E. Our EBITDA forecasts remain cautiously positioned and unchanged save for further expected investment in the Medical division. We continue to see a potentially very significant market opportunity for the Group’s small scale cryogen-free MRI for veterinary and orthopaedic applications, noting that product is expected to be launched in Q4 calendar 2023. We maintain our Buy recommendation and 510p TP.
