Office2Office - Mixed Interims But Some Strong Growth Prospects

Office2Office Mixed Interims But Some Strong Growth Prospects Office2office announced mixed interim results for H1 2013 on 29th August. Revenues grew by 5% versus H1 2012, as growth in Business Critical Services offset a continued decline in Managed Procurement sales. While there was a sharp y-o-y fall in adjusted PBT, reported PBT actually increased £0.3m to £1.2m. Management is not declaring an interim dividend for H1 2013, however we still see significant medium-term growth opportunities that can be catalysed by the short-term cash preservation and investment. We also note that even in recent tough conditions o2o has remained profitable with a strong operational cash flow. Our stance is Buy. 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 8.0 8.2 PBT 1 (£m) 8.4 6.5 4.9 5.3 Basic EPS (p) 12.0 0.9 5.1 7.4 Source: GECR and company Notes: 1 Adjusted for exceptional items and non-cash charges. Buy Target price 50p Key data Share Price 34.75p 52 week high/low 139.00p / 33.75 Primary exchange LSE EPIC OFF Shares in issue 36.31 m Market Cap £12.6m Sector Support Services Valuation 2013 Forward P/E 6.8 2014 Forward P/E 4.7 NAV £17.3m Important: All disclaimer information can be found on the last page of the document

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