A pleasing trading update from CSC with FY25 sales growth of c.11% and EBITDA now expected to be substantially better than anticipated (c.£0.8m vs SCM £0.4m). This flows through to higher net cash (£2.1m vs £1.6m SCM). Driving this is a record year from both Integrity Management and Hydrogen. In Defence, there was strong growth from overseas markets offsetting the well-flagged impact of contract phasing in the UK. There is strong optimism that FY26 will be another year of progress, underpinned by a strong order book and commercial momentum building in the UK hydrogen market. Our FY25 forecasts have been adjusted as per the trading update and we have also upgraded FY26e (sales +5%/EBITDA +43%) reflecting positive management commentary. We reaffirm our BUY rec and 50p TP.
