Peel Hunt: 9p EPS then 10.9p EPs15 Jan 2018 22:58
Peel Hunt now go for 9p EPS to this March, with 10.9p EPS to March'19.
Good to see all the analysts coming in around the same estimates:
Https://ftalphaville.ft.com/marketslive/2018-01-15/
"The anticipated stronger H2 performance has not materialised so the FY result is now expected to be significantly lower than previously planned. As a consequence of delayed projects and lower customer orders, the Board has also reduced its profit expectations for FY2019. However, the Group�s financing remains healthy and it continues to operate well within its banking covenants. We have cut our FY18 and FY19 PBT forecasts by 30%. The shares have been hit hard on this morning�s news, despite the significant underperformance over the last six months. At this level, we see recovery value if Management can deliver on the revised forecasts.
We have cut our Mar�18 PBT by 30% to �9.0m (9.0p). Most of the damage is at
Technical Plastics, which accounts for �2.8m of the �4.0m EBITA miss this year, but the Wipac & Aerospace EBITA forecasts have also been cut. The size of the downgrade reflects the large contribution from tooling profits and the degree of fixed costs, so the delayed contract awarding has a disproportionate impact on profits. We have also cut our Mar�19 PBT by 30% from �15.4m to �11.0m (10.9p). In theory, the contract slippage from H2 this year, into next and the ramp up in medium-volume Wipac programmes towards the end of next year should underpin the FY2019 profit forecast. However, we are choosing to adopt a far more conservative approach."
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