Capital Network analyst sees 'significant upside opportunity' at Synnovia

Capital Network analyst Ed Stacey discusses Synnovia's (LON:SYN) results for the year to the end of March 2019. Revenues increased 8.7% to £81.6mln, earnings before interest, tax, depreciation, and amortisation (EBITDA) were up 7.3% at £7.5mln, and earnings per share (EPS) were up 2.1% at 9.7p. Stacey says the company has an established record of revenue growth and a significant upside opportunity in improving profit margins. He believes the valuation could re-rate upwards as risk factors such as Brexit uncertainty begin to dissipate.