As flagged, 2017 results were impacted by contract delays and revenue recognition adjustments resulting in an £18.5m EBITDA (-14% y-o-y). Steps are being taken to ensure performance is improved, including significant cost-cutting and improving quality of earnings so cash generation tracks profits much more closely. On our new forecasts, the shares are trading on 7.3x cal’18 EV/EBITDA – as the group rebuilds confidence in its delivery, the potential upside from a re-rating is significant.
01 Mar 2018
First steps to rebuilding confidence
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First steps to rebuilding confidence
Idox plc (IDOX:LON) | 61.6 0.4 1.0% | Mkt Cap: 282.9m
- Published:
01 Mar 2018 -
Author:
Tintin Stormont -
Pages:
3
As flagged, 2017 results were impacted by contract delays and revenue recognition adjustments resulting in an £18.5m EBITDA (-14% y-o-y). Steps are being taken to ensure performance is improved, including significant cost-cutting and improving quality of earnings so cash generation tracks profits much more closely. On our new forecasts, the shares are trading on 7.3x cal’18 EV/EBITDA – as the group rebuilds confidence in its delivery, the potential upside from a re-rating is significant.