Gordon Dadds has released its first set of results post the acquisition of Ince UK, for the year to 31 March 2019. We highlight FY19A Adj EPS of 18.8p, against our expectation of 12.5p; 50% ahead. A focus on lateral hires into the consolidated international network leads to upgrades to both FY20E Adj EPS (incr. 12%) and FY21E Adj EPS (incr. 25%). At just 5.9x FY20E EPS, against a peer average of c.20x (CY19), the shares are currently substantially undervalued, in our view. We reiterate our PT
25 Jul 2019
Gordon Dadds - EPS Beat by 50%, 22% FY21 Upgrades, Wrong price at 5.9x P/E
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Gordon Dadds - EPS Beat by 50%, 22% FY21 Upgrades, Wrong price at 5.9x P/E
- Published:
25 Jul 2019 -
Author:
James Bayliss -
Pages:
11
Gordon Dadds has released its first set of results post the acquisition of Ince UK, for the year to 31 March 2019. We highlight FY19A Adj EPS of 18.8p, against our expectation of 12.5p; 50% ahead. A focus on lateral hires into the consolidated international network leads to upgrades to both FY20E Adj EPS (incr. 12%) and FY21E Adj EPS (incr. 25%). At just 5.9x FY20E EPS, against a peer average of c.20x (CY19), the shares are currently substantially undervalued, in our view. We reiterate our PT