Odd’ year outruns the best ‘even’
Avesco Group Plc (L:AVS): FY15 results were ahead of forecasts, with particularly strong performance from Creative Technology (CT) in the US and with CT Europe getting a boost from the European Games in Baku. FY16 should benefit from the UEFA European Championships and Rio Olympics. Growth of corporate revenues and the migration of Presteigne to dry hire only are helping to even out swings between odd and even years, with the ‘odd’ FY15 outperforming previous ‘even’ highs. The Fountain Studio sale will further bolster the balance sheet, supporting investment to grow CT and a progressive dividend.
Creative Technology continues to power up
As was clear from early on, CT traded strongly in FY15, particularly in the key US market, with the benefit of a positive underlying market across a range of verticals. The European Games in Baku were also more valuable for CT than originally anticipated. Losses in Germany have been largely eliminated and the H2 outperformance was broadly attributable to the US, which more than compensated for tough markets for Broadcast Services. Earnings benefited further from an advantageous tax settlement with HMRC on treatment of earlier losses.
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