Office2Office - Growth in difficult conditions

Office2Office Growth in difficult conditions office2office, the leading supplier of office supplies and business services in the UK, has announced an interim management statement for the period between 1st July 2012 and 15th November 2012. This highlighted that group revenue exceeded the comparable period last year, and noted the effect that significant recent contract wins will have on 2013 revenues – a contribution in excess of £20m. While 2012 results are expected to be in line with last year, we believe the recent growth in multiple areas of the business bodes well for the group in 2013 onwards. With the shares trading at 121p, we maintain our stance of buy and our 219p target price. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2010A 2011A 2012E 2013E Revenue (£m) 207.6 193.5 228.3 240.2 EBITDA1 (£m) 13.0 10.8 11.5 12.4 PBT (£m) 4.6 4.3 4.0 7.2 Basic EPS (p) 12.0 12.0 8.2 14.7 Dividend (p) 11.4 11.4 11.4 11.4 Source: GECR and company Notes: 1 Adjusted for exceptional items and non-cash charges. Buy Target price 219p Key data Share Price 121p 52 week high/low 163.75p / 119.00p Primary exchange LSE EPIC OFF Shares in issue 36.31 m Market Cap £43.91m Sector Support Services Valuation Dividend Yield 9.4% EV / EBITDA 9.3 P/E 10.2 NAV £20.6m Affiliations: None Important: All disclaimer information can be found on the last page of the document

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