bullish
Smiths News - Strong results, debt falling rapidly
SUMMARY
Management delivered on promises again as Smiths News produced a strong set of FY21 results. Operating profit increased nearly 13% and net debt fell to £53m (1.2x net debt:EBITDA versus c 2.0x in August 2020). Underlying market conditions are normalising and the company has adopted new sustainability targets, which is encouraging. We have raised our forecasts to reflect better-than-expected trading while acknowledging that inflationary pressures exist in the market. On the back of the upgrade, we have increased our valuation from 77.4p/share to 81.5p/share, twice the current share price.
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- Smiths News - Strong results, debt falling rapidly08 Nov 2021
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