PTSG’s AGM statement this morning highlights a positive first half performance with record sales year to date, particularly in the installation businesses. Trading and cash flows are in line with expectations. In its first year as a public company, PTSG exceeded expectations. We continue to see scope for outperformance, through organic contract momentum and a return to the acquisition trail after a period of consolidation in H1. In our view, the growth trajectory (PBT +42% in FY16E) is not reflected in the current rating (<13x FY16 P/E). We therefore consider this an attractive entry point for this well managed, high margin specialist service provider.
