VLG made good strategic and operational progress in FY22 and has delivered a c5% beat at the EBITDA level. While D&A weighs a bit on PBT/EPS, the revenue and profit outlook is positive. We maintain sales/EBITDA in FY23, and have introduced forecasts for FY24 which indicate a 2-year EPS CAGR of 50%. Crucially, FCF is expected to improve materially, reducing ND by almost £10m over the next 2 years and offering an adj. FCF yield in excess of 15% this year. Without expanding our target multiple at this stage, which remains a plausible option looking forward, we have increased our target price 16% to 84p (offering a TSR >100%). Buy.
