Murgitroyd has reported a good start to FY20, building on significant strategic progress in FY19. Chapman IP has been integrated successfully, Brexit is stimulating activity and recent trading has benefited from a large customer win. We leave our forecasts unchanged at this stage but see potential upside as FY20 progresses, notwithstanding macroeconomic uncertainties. Recent S/P weakness looks wholly misplaced and the shares inexpensive (FY20 P/E 12.5x, 4.7% yield).
