Findel has already issued 2 good statements this year. Today’s year end trading update confirms encouraging group trading has continued in the last 10 weeks. As a result PBT is expected to be at the upper end of expectations, with c20% YoY growth. Net bank debt was also slightly better than expected (at c£79m adjusting for timing differences). With the customer redress payments progressing to plan, the group is well on track to return to positive free cash flow from FY20. We expect this update to be well received by the market noting that, despite outperforming over 3 and 6 months, the 9x P/E still offers plenty of scope for re-rating. Rolling forward a year, our SoTP based estimate of fair value increases by 15% to 318p.
