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Friday, December 7, 2012

Avesco - Positive developments on multiple fronts

Avesco

Positive developments on multiple fronts

  • Avesco Group, the provider of services to the international corporate presentation, entertainment and broadcast markets, has announced a trading update in which management have stated that they expect FY2012 trading EBIT and PBT will be ahead of market expectations.
  • Furthermore, the group also announced a positive update regarding the ongoing court case in which it has a c.$60m interest.
  • We have upgraded our target price accordingly – from 240p to 260p – and we reiterate our stance of buy.

Click to Download Full Report

Table: Financial overview
Year to 30th Sept
2010A
2011A
2012E
2013E
Revenue (£m)
117.24
125.53
143.0
140.0
EBITDA1 (£m)
19.65
20.26
27.4
26.0
PBT1 (£m)
(0.083)
0.911
5.4
3.8
EPS1 (p)
(1.2)
2.6
15.0
11.3
Net debt (£m)
13.73
12.14
27.0
25.0
EV/EBITDA
3.9
3.8
2.8
2.9

Source: GECR and company
Notes: 1 excluding non-recurring costs

Buy
Target price
260p
Key data
Share Price
192p
52 week high/low
197.5p / 135p
Primary exchange
AIM
EPIC
AVS
Shares in issue
25.44m
Market Cap
£48.71m
Sector
Media
Valuation
EV/EBITDA
3.8
2012 Forward P/E
12.8
NAV/Share
£38.6m
TNAV/Share
£38.4m

Analyst details

Emanuil Manos Halicioglu
+44 (0)207 562 3368
emanuil.halicioglu@gecr.co.uk

Andrew Noone
+44 (0)207 562 3361 andrew.noone@gecr.co.uk

Affiliations: None

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