Income jumps in H2, well ahead of forecasts
H2 has seen an acceleration of the progress made in H1, with the confidence that CAB management expressed at the end of H1 fully justified. FY25 income is now expected to be c. £119m, versus our previous forecast of £112.6m. Adjusted EBITDA is expected to be ‘slightly above the range of consensus estimates’. Our previous EBITDA forecast was £32.9m with a maximum analyst forecast of £33.8m, so it seems likely that actual EBITDA will top £34m. CAB also stated that FY25 has seen positive operating leverage.FY25 has been a transformational year for strategic and financial progress. In H1, network partner numbers and client numbers showed strong growth, which has almost certainly continued in H2. The network, and consequently additional growth potential, was enhanced with the opening of a New York office, a new International Money Transfer Operator licence in Nigeria, and the in-principle approval of a licence in Abu Dhabi.
FY26 starts off a higher base than we previously forecast, so it is highly likely that our forecasts will be raised, as will our fundamental valuation which is currently 90p/share (36% above last close). However, we will wait until 5th March to update our forecasts and valuation based on full FY25 results, and an updated growth outlook.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.