summary23 Aug 2018 14:54
finn summary: Interims to June confirm continuing strong performance identified at the July trading update, achieving 51% of forecast FY revenue (1H17: 44%) and 58% of FY EBITDA (1H17: 38%), with visibility over FY contracted revenue already at 88% of full-year expectations (71% this time last year). Net cash is very strong at $15.5m, with 84% of FY free cash flow expectations achieved through the unwind of a build-up in 4Q17 working capital typical of a model which remains dominated by perpetual licences. Forecasts are unchanged and de-risked, leading us to review our target price to 1295p (1000p), equivalent to an FY19 EV/EBITDA of 17.