RE: Proactive research report14 Jul 2021 11:36
#LTH
Financial outlook
Based on both the inventory securitisation programme and the TradeFlow deal, we expect strong growth in revenues for Supply@ME in 2021, driving a rapid transition to profitability, with further growth in the coming years.
Based on our forecasts of £50.1mln of revenue and £29.8mln of underlying earnings (EBITDA) by full-year (FY) Dec 2023, we believe that the current market capitalisation of £123mln leaves significant upside potential. For example if the market were to apply a 10x multiple to our 2023 EBITDA forecast, this would imply a market cap of £299mln, or 143% upside to the current level. We believe that there is potential for the shares to re-rate during the remainder of 2021 as the business plan progresses through its next stages.
Year end Dec 31 Current 2021 2022 2023
Revenue (£mln) 1.1 12.1 25.0 50.1
Gross Profit (£mln) 0.4 9.7 19.1 38.0
EBITDA (£M) 1.2 7.7 14.4 29.8