We resume coverage on Gordon Dadds following the GM approval of their £11.5m equity raise in January. Proceeds from the raise replenish the balance sheet following the successful acquisition of Ince UK, which added £33m of annualised revenues to underlying revenues of £42.4m. We highlight a clear disparity between a 39% EPS CAGR FY18A-FY21E and refreshed balance sheet (£0.4m net cash FY20E) against a current rating of just 7.0x P/E FY20E compared to peer average of CY1
12 Feb 2019
Equity raise of £11.5m; balance sheet bolstered
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Equity raise of £11.5m; balance sheet bolstered
- Published:
12 Feb 2019 -
Author:
James Bayliss -
Pages:
5
We resume coverage on Gordon Dadds following the GM approval of their £11.5m equity raise in January. Proceeds from the raise replenish the balance sheet following the successful acquisition of Ince UK, which added £33m of annualised revenues to underlying revenues of £42.4m. We highlight a clear disparity between a 39% EPS CAGR FY18A-FY21E and refreshed balance sheet (£0.4m net cash FY20E) against a current rating of just 7.0x P/E FY20E compared to peer average of CY1