We have updated our forecasts, assuming revenue at 80%/90% of FY20 levels in FY21/FY22, alongside some cost reductions. We forecast PBT of £20.3m/£25.4m in FY21/FY22 (FY20: £28.6m). We expect the balance sheet to remain strong, forecasting net cash exc. lease liabilities of £11.9m/£16.3m (FY20: £16.2m). The Group is trading on an FY21 P/E multiple of 13.4x, falling to 10.6x. We use the long term P/E rating of 12.9x on our FY22 forecasts to drive an 88p TP, which implies 21% upside to the current ....
19 Jun 2020
Strong balance sheet and recovery prospects – Buy
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Strong balance sheet and recovery prospects – Buy
Severfield Plc (SFR:LON) | 69.1 0.7 1.5% | Mkt Cap: 213.9m
- Published:
19 Jun 2020 -
Author:
Greg Poulton -
Pages:
3
We have updated our forecasts, assuming revenue at 80%/90% of FY20 levels in FY21/FY22, alongside some cost reductions. We forecast PBT of £20.3m/£25.4m in FY21/FY22 (FY20: £28.6m). We expect the balance sheet to remain strong, forecasting net cash exc. lease liabilities of £11.9m/£16.3m (FY20: £16.2m). The Group is trading on an FY21 P/E multiple of 13.4x, falling to 10.6x. We use the long term P/E rating of 12.9x on our FY22 forecasts to drive an 88p TP, which implies 21% upside to the current ....