Investors Chronicle25 May 2017 12:46
Bilby on the mend
Last week’s trading update from Aim-traded Bilby (BILB:67p), a provider of gas heating appliance installation and maintenance services to residential and commercial properties, is well worth noting. The company revealed that “a number of existing clients have broadened the scope of work to be undertaken by Bilby in advance of the March 2017 year-end, and other contracts that were set to start in the current financial year have commenced earlier than previously anticipated”. As a result, Bilby is now expected to report cash profits of at least £3.6m, or 20 per cent higher than house broker Northland Capital had forecast, based on annual revenues of £62m rather than £60m. Analyst Mike Jeremy has taken note and raised his pre-tax profit estimate by 25 per cent to £3m and lifted his EPS estimate to 6.6p, up from £2.2m and 5.7p, respectively, for the 2016 financial year.