NFC has provided a full year trading update with FY18E expected to be in line with expectations. Beneath the surface this breaks down into a better than expected UK performance; a return to healthy 5% plus organic growth in the US; but softened by the recent strength of Sterling relative to the dollar. Group net debt is expected to be lower than £12m at the year end, £2m better than our original expectation of £14.3m. We are taking this opportunity to revise our forecasts to factor the recent Brandwidth acquisition; UK strength and dollar weakness. The net result is a 2% upgrade to our FY19E EPS estimate. NFC currently trades on a FY19E PER of 13.5x, EV/EBITDA of 8.3x and a dividend yield of 1.7%. The PER discount to the Small Cap Agency peer group has widened to 13%.
20 Feb 2018
Trading update – UK momentum; dollar headwinds; estimate upgrades
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Trading update – UK momentum; dollar headwinds; estimate upgrades
Next 15 Group plc (NFG:LON) | 894 125.2 1.6% | Mkt Cap: 889.5m
- Published:
20 Feb 2018 -
Author:
Iain Daly -
Pages:
4
NFC has provided a full year trading update with FY18E expected to be in line with expectations. Beneath the surface this breaks down into a better than expected UK performance; a return to healthy 5% plus organic growth in the US; but softened by the recent strength of Sterling relative to the dollar. Group net debt is expected to be lower than £12m at the year end, £2m better than our original expectation of £14.3m. We are taking this opportunity to revise our forecasts to factor the recent Brandwidth acquisition; UK strength and dollar weakness. The net result is a 2% upgrade to our FY19E EPS estimate. NFC currently trades on a FY19E PER of 13.5x, EV/EBITDA of 8.3x and a dividend yield of 1.7%. The PER discount to the Small Cap Agency peer group has widened to 13%.