FY25 results are slightly better than anticipated, as LFL AOP grew +8% (notwithstanding higher employer NIC) while FCF grew +9% to £12.6m (post >100% cash conversion). Furthermore, even after paying an initial $20m payment for Social Snowball, y/e net cash remains very strong, at £36.2m - providing a very strong platform for growth. Materially unchanged FY26 forecasts points to improving u/l trends, alongside Social Snowball (currently growing +50% y/y) with confidence underpinned by +9% organic ARR growth, to £72.6m in FY25. We also introduce FY27 forecasts (in line with consensus) reflecting high-single-digit growth, improving margins and as a result, accelerating EPS growth of +12%. These are not the signs of a challenged or languishing company and therefore continue to see material upside to fair value.
