Expert System (MI:EXSY)’s H1 trading update confirms that it generated year-on-year sales growth of more than 50% in H118 to €12.9m. Management confirmed that this is in line with its growth plan (sales growth of 9-15% y-o-y for FY18). We maintain our forecasts; full H118 results are due to be published on 28 September.
Expert has announced that it generated sales of €12.9m in H118, up 53% from the €8.4m generated in H117. Management commented that these results were in line with its growth plan. We note that the company had previously guided to sales in the range €28.5-30.0m for FY18, and we are forecasting €29.0m for the year. As a reminder, our revenue forecast also includes €1.5m of grants and other income (€1.6m reported in FY17). Based on the sales achieved in H118, this implies the company will need to generate sales of €16.1m in H218, equating to half-on-half growth of 25% but a year-on-year decline of 9% from the €17.7m generated in H217. The company typically sees strong seasonality with H2 revenues higher than H1. In FY17, H2 revenues made up 68% of the total – we do not expect the seasonal effect to be quite so strong in FY18 but view our H218 forecast as achievable. We maintain our forecasts pending full H118 results on 28 September.
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