Findel PLC Edison issues outlook on Findel (FDL)
18 July 2017 - 11:58PM
RNS Non-Regulatory
TIDMFDL
Findel PLC
18 July 2017
London, UK, 18 July 2017
Edison issues outlook on Findel (FDL)
The jump in online sales mix from around 56% a year ago to 63%
in FY17 is significant in showing Express Gifts' rapid progress
towards becoming a pure-play online business. New management
confirms the strategy and meanwhile has drawn a line under legacy
issues, while the balance sheet is adequate to deal with these and
the operation's development needs. We are materially raising our
valuation to 324p and believe that, as Findel moves more fully
online, there will be further upside to its revenue growth and,
consequently, share price.
We are materially increasing our sum-of-the parts valuation from
236p to 324p, fully reflecting legacy issues. However, with these
results Findel has clarified its strategic pure-play online goal.
Our work shows that its existing cost structure is already in line
with such companies (which enjoy P/E valuations of c 70x) and,
having observed the operation, we believe it has the potential to
accelerate revenue growth and that, consequently, there is further
valuation headroom.
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