FY22 is in line with expectations with the notable figure being FCF before exceptionals of £10.2m. Managed services organic growth of 1% was held back by lockdowns and equipment shortages impacting non-recurring revenues, despite organic recurring revenue growth of c. 7%. We leave FY23 forecasts unchanged. With its updated strategic plan looking to accelerate organic growth and deleverage the balance sheet, the stock remains extraordinarily cheap on 5x P/E and a mid-teens FCF yield. Success on b ....
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Strong FY22 FCF generation to continue in FY23
- Published:
12 Jul 2022 -
Author:
Kevin Ashton -
Pages:
8
FY22 is in line with expectations with the notable figure being FCF before exceptionals of £10.2m. Managed services organic growth of 1% was held back by lockdowns and equipment shortages impacting non-recurring revenues, despite organic recurring revenue growth of c. 7%. We leave FY23 forecasts unchanged. With its updated strategic plan looking to accelerate organic growth and deleverage the balance sheet, the stock remains extraordinarily cheap on 5x P/E and a mid-teens FCF yield. Success on b ....