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.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information please contact Edison:
Paul Hickman, +44 (0)20 3681 2501
Neil Shah, +44 (0)20 3077 5715
Learn more at www.edisongroup.com and connect with Edison on:
Dissemination of a UK FINANCIAL NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.