ILX Group - Finals – High demand for project management

 

 

ILX Group	Update 2nd July 2012
Finals – High demand for project management	Speculative Buy     Target price 30.1p     Key data Price 10.625p 52 week high/low 32.50p/10.30p Primary exchange AIM EPIC ILX Shares in issue 27.59m Market Cap £2.93m Sector Support Services       Valuation   EV/EBITDA 4.49 P/E 3.02 NAV / Share 24.53p TNAV / Share (11.43p)     Previous note Short-term trading disappointment, long-term prospects remain bright         Affiliations: None     Important: All disclaimer information can be found on the last page of the document
ILX Group has announced full-year adjusted pre-tax profits which are slightly better than our revised forecasts.. The AIM-quoted provider of e-learning software and consulting services added that demand for project and programme management skills and knowledge remains high, even in the current climate, and is expected to increase. While the decision to suspend paying a dividend has taken its toll on the share price, we believe that the strategy to focus on digital learning and developing the business in overseas markets remains the right one. However, given its financial position, we have moved our recommendation from buy to speculative buy. Click to download Full Report
Table: Financial overview Year to 31st March 2011A 2012A 2013E 2014E Revenue (£m) 12.9 13.5 15.0 16.0 EBITDA* (£m) 1.8 1.1 1.3 1.4 PBT* (£m) 1.5 1.0 1.1 1.3 EPS* (p) 4.4 2.5 2.9 3.2 Dividend (p) 1.5 0.0 0.0 0.0 * Excluding one-off non-cash refinancing charges, share option charges, and intangibles impairment.

 

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