Office2Office - Strong Growth Opportunities Remain

Office2Office Strong Growth Opportunities Remain office2office, the leading supplier of office supplies and business services in the UK, announced preliminary results for FY2012 on 26th March 2013, highlighting revenue growth of 17.5%. While 2012 went not without incident, o2o implemented two major contracts and won further contracts worth in excess of £40m pa. Although unexpected implementation costs reduced 2012 profitability and the annual dividend (which still offers an 8.1% yield), o2o remains cash generative and has, we feel, considerable growth opportunities. We reiterate our stance of Buy with a 160p target price. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2011A 2012A 2013E 2014E Revenue (£m) 193.5 227.3 242.1 251.0 EBITDA1 (£m) 10.8 9.7 10.4 10.7 PBT 1 (£m) 8.4 6.5 7.4 8.0 Basic EPS 1 (p) 20.7 13.4 16.0 17.3 Dividend (p) 11.4 7.2 7.2 7.2 Source: GECR and company Notes: 1 Adjusted for exceptional items and non-cash charges. Buy Target price 160p Key data Share Price 88.50p 52 week high/low 161.50p / 86.00p Primary exchange LSE EPIC OFF Shares in issue 36.31 m Market Cap £32.13m Sector Support Services Valuation Dividend Yield 8.1% 2013 P/E 5.5 2014 P/E 5.1 NAV £19.5m Important: All disclaimer information can be found on the last page of the document

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