Keywords’ recent trading update indicated that the company continues to perform robustly despite industry turbulence. The acquisition of GetSocial, a cloud marketing services platform, for an undisclosed sum highlights the potential for Keywords’ M&A strategy to benefit from the weaker funding environment. We adjust our estimates to reflect slightly greater investment of profit back into the business in FY19 (EPS -3%), while adjusting working capital and deferred consideration payments upwards. We retain our view that Keywords remains strongly positioned, with an undemanding rating given the company’s leading market position, track record and potential.
