RE: EPS "well above" expectations!11 Mar 2024 11:44
WH ireland summarise today as follows FYI:
"Today’s full year trading update demonstrates the progress that has been made in the business, with the execution of Touchstar’s multi-year strategy coming to fruition in a material improvement in profitability in FY23.
While our forecasts imply further organic growth as the group continues on its trajectory towards higher margin software licence and recurring revenues, we also note the very healthy net cash position (making up ca. 39% of the market cap), which brings the potential for bolt-on acquisitions, value being realised through further share buybacks, and further internal investment opportunities.
With the shares currently trading on a FY 2024E EV/Revenue of just 0.6x, EV/EBITDA of 2.4x and PER of 10.8x, we continue to see significant upside for the shares. We see fair value for the shares at 140p (previously 120p), which would imply a FY 2024E EV/Revenue multiple of 1.0x."