Update | Post results update
We reassess our forecasts below, no significant changes to the P&L and the company produced a strong start to FY18e where revenue in the 1Q18 was +60% YoY to €4.8m, maiden dividend of 0.25p proposed. AGM in July should provide detail on timing of dividend.
Revenue and EBITDA forecasts remain as before for FY18e and FY19e, an increase to tax lowers our EPS to 10.1c in FY18e and 11.8c in FY19e. We also include dividend forecasts for FY18e and FY19e of 0.33p and 0.42p (+30% YoY) in line with EBITDA growth. The business produced a strong start to FY18 where revenue in the 1Q18 was +60% YoY to €4.8m. The audit report for the year to December 2017 included a material uncertainty in relation to going concern, which highlighted the Company’s requirement to restructure its banking relationships so that outstanding receivable balances from online financial trading brands could be settled. Intangible assets and goodwill to the value of €5.7m were identified as being subject to review if the matter could not be resolved. We note that progress is being made by the Company in this regard and have reviewed our balance sheet forecasts in light of this progress (p6&7). Net cash at the end of May 2018 was €1.6m and after reassessing working capital, capex and tax requirements our net cash estimate for FY18e reduces to c. €5.6m.