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Revenue is now expected to be at least $900 million, representing an increase of at least 25% over the prior year, including seven months contribution from the acquisition of Murat Ticaret, while underlying operating profit1 is also now anticipated to be slightly ahead of analyst expectations.

The Company has compiled forecasts from five analysts with current market forecasts for the 52 weeks ended 31 March 2024 for revenue to be in the range of $849.8 million to $873.0 million, with a consensus of $859.5 million, and for underlying operating profit to be in the range of $83.3 million to $84.6 million, with a consensus of $84.2 million.

Profit margin is up -

Operating profit margins improved in the second half of the year.

Growth is organic, as well as from acquisitions -

The second half of the year saw continuing increases in organic revenue

Outlook - sounds upbeat and confident -

The Group's presence in attractive markets and its well-invested global manufacturing base offer significant growth opportunities. Strategic investment initiatives continued throughout the year to support customer requirements and will continue during FY2025.

In response to increasing customer demand, the Group invested in the further expansion of its global manufacturing base, creating additional capacity to facilitate growth as part of the Group's five-year growth plans which target revenues of $1.2 billion by the end of FY2027.

We enter the new financial year with confidence and optimism thanks to the strong momentum generated in the current financial year, improving market conditions in the Electric Vehicles and Consumer Electricals sectors, as well as an abundance of opportunities in the new Off-Highway sector. Our continued, strategic investment initiatives will support increased customer demand as we continue to make strong progress towards the delivery of our five-year plan."

Cashflow/debt - sounds OK -

The cash generative nature of the business provides the Group with flexibility over internal growth investment and M&A activity. Cash flow was very strong in the second half of the year, with covenant leverage at the year end expected to be approximately 1.1x.

Paul’s opinion - remains positive. I think this update justifies a move back above 300p.

I could see this share re-rating decently in the next bull market, so I think investors should be handsomely rewarded if they’re patient. It keeps putting out reassuring updates, despite tough market conditions in recent years. Overall - I think it’s cheap. (I've not looked at today's share price yet).

https://app.stockopedia.com/content/small-cap-value-report-thu-18-april-2024-ids-eman-nxr-vlx-song-995066?order=createdAt&sort=desc&mode=threaded

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