Strong 2015 trading; expect further acquisitions
Keywords St (L:KWS) has stated that it expects its full-year revenue and adjusted PBT 2 February 2016 numbers to come in “comfortably ahead” of consensus estimates. Having raised funds in November, the company also re-iterated its commitment to a buy-and-build strategy to complement its already solid organic growth. It is in advanced discussions to complete one or more deals and we expect an announcement could be made before the company delivers its full-year financials in April.
Strong H2 trading – underpins existing forecasts
Keywords’ update indicates strong trading in H215, continuing the momentum that the company has built up over the last couple of years. The expected top line and PBT beat suggests it is successfully integrating the numerous acquisitions carried out in 2014/15 from both a cost-efficiency and a cross-sell driven revenue synergy perspective. We have updated our EPS and year-end net cash estimates to reflect November’s placing. We have left our revenue forecasts unchanged, but note the prevailing upside risks. We are planning to revisit our estimates when the company completes its next acquisition or on release of the company’s full year numbers in April, whichever is sooner.
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