Idox is seeing positive momentum with stable/positive outlook across all its markets. It has delivered single digit organic growth, which supplemented by accretive acquisitions and good cost control has resulted in c.40% growth in EBITDA in H1’16. The group has consistently generated healthy margins (25-30% EBITDA margins every year in the last 5 years) and cash alongside, allowing it to fund acquisitive growth as well as pay progressive dividends. With a rating of 11.7x cal’16 EV/EBITDA (10-20% discount to peers) and a positive outlook, we believe the group can close the valuation gap, which would imply at least a 73p share price.