Something for everyone in this week’s FY22 results statement.
This was a strong performance, in terms of revenue, profit and margin growth (and slightly ahead of recently revised expectations).
FY22 revenue was up 10% to £1,237m, with adjusted operating profit up 83% to £18.5m and a 40bps improvement in the margin to 2.4% (so looks to be on track for its 3% target by 2026).
Average month-end net cash for the period was £174m, its PPP asset portfolio stood at £47.5m and it remains debt free with no pension liabilities.
As a measure of its confidence in its outlook, the final dividend was increased by 66% and it also announced a further capital return, via a £15m share buyback.
Its order book of £3.4bn provides it with 90% of revenue visibility for FY23E and the margin profile demonstrates the de-risking of the group.
The shares trade on 9x FY23E PE, a FCF yield of +10% and dividend yield of over 5% (based on current Factset consensus), undemanding in terms of the valuation.
Source: Cenkos Securities
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