What it said on the tin!14 Dec 2023 08:22
TU delivered and it was, as predicted. Personally, I like the fact that the update is consistent with what CPI have been projecting in recent months and there were no nasty surprises. It does seem that 2025 is the year when the company, setting aside anything else that the new CEO does in terms of cost reduction, really starts to deliver for the shareholders. Any costs associated with cyber, pension and redundancies all dealt with in 2024, the value from the current contracts and their delivery will put the comany into a position of sustained profitability.
Mid single digit margin would suggest greater than 5%, based on current revenues being just under 3 billion, thats a projection of 150 million (or there abouts). We are then talking dividend reinstatement etc. This share is a medium to long term hold and thats the only way to look at it in my view (thats always been the case for the last few years unless you have taken losses). There will be no fireworks and anyone who expects significant rises in the short term would be well advised to look for other opportunities.