Daisy Group plc (DAY)
Daisy interims show Build progress after the Buy
Daisy Group plc | Download | Published on 06/12/2011Daisy’s interims contained few surprises, with revenues of £176m and EBITDA of £26.6m. The company reiterated its outlook for the full year, which suggests 2H improvements in EBITDA margins. With Daisy’s financials now ‘clean’ after a nine month M&A hiatus, the progress of the business will be easier to track, and these results show that Daisy is creating a substantial, broad ranging and profitable business from its multiple acquisitions of the last two years. We have tweaked our EBITDA and cash flow forecasts; at a share price of 102p, Daisy trades at just 5.8x current year EBITDA, 7.3x PE and a 15.1% FCF yield, offering good value.
