H1 revenues show continued double-digit core growth, with further contract mobilisations and a strong pipeline underpinning FY expectations. The group is not immune from inflationary pressures however and management has elected to prioritise market share growth over near term margin protection. We update our forecasts accordingly, now expecting an EBITDA loss for this year of £1.3m. Management has additional levers to control discretionary expenditure and working capital management such that it expects to achieve a positive EBITDA position in FY24 whilst managing the group’s financial position within existing resources. We continue to see substantial growth and value creation potential, particularly around the Group’s NIPT and Ranger Tech offerings, both of which are now starting to show their potential, with more to come in H2 and beyond. In our opinion, the recent share price fall is way overdone and the current valuation fails to capture the operational and strategic potential of the business.
