TXT e-solutions - Strong Q1 drives upgrades

TXT e-solutions reported strong revenue and profit growth in Q121, reflecting the benefit of recent acquisitions and good cost control. Since the end of Q1, the company has signed promising contracts in both divisions, including the first contract for TXT Working Capital Solutions. We have revised our forecasts to reflect this performance, resulting in upgrades to our normalised EPS forecasts of 5.5% in FY21 and 6.9% in FY22. With net cash of €10.8m and treasury shares worth at least €9m, management indicated it is considering further M&A while continuing to drive organic growth.