The trading update for the year ended Jan 2020, did not contain any new news as such. Both Beyond and Archetype had been well flagged to the market as likely net detractors to the group in the current year. However, it is clear that the initial client losses at Beyond have not been recovered enough by new client wins to protect the group bottom line and we are adjusting our estimates accordingly. Despite this negative, the rest of the group is performing well with a blended organic revenue growth of c.10% outside of Beyond and Archetype. The outlook statement is broadly positive, Beyond notwithstanding, with 2020 expected to be a year of growth and strategic progress. Even after factoring a small reduction to FY 2020 and FY 2021 estimates, we still see Next Fifteen delivering 11% PBT growth in FY 2020 and 15% in FY 2021. The calendarised FY 2021 PE is 13.1x, a 16% discount to the slower growing and more highly geared peer group.
29 Jan 2020
Full year trading update – Moving parts
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Full year trading update – Moving parts
Next 15 Group plc (NFG:LON) | 912 182.3 2.2% | Mkt Cap: 904.4m
- Published:
29 Jan 2020 -
Author:
Iain Daly -
Pages:
6
The trading update for the year ended Jan 2020, did not contain any new news as such. Both Beyond and Archetype had been well flagged to the market as likely net detractors to the group in the current year. However, it is clear that the initial client losses at Beyond have not been recovered enough by new client wins to protect the group bottom line and we are adjusting our estimates accordingly. Despite this negative, the rest of the group is performing well with a blended organic revenue growth of c.10% outside of Beyond and Archetype. The outlook statement is broadly positive, Beyond notwithstanding, with 2020 expected to be a year of growth and strategic progress. Even after factoring a small reduction to FY 2020 and FY 2021 estimates, we still see Next Fifteen delivering 11% PBT growth in FY 2020 and 15% in FY 2021. The calendarised FY 2021 PE is 13.1x, a 16% discount to the slower growing and more highly geared peer group.