Ince Group Update - Much More to Come
Gordon Dadds' final results for the year to March 2018 beat our forecasts and those of the market. Given the pace of growth, and the phasing of acquisitions which supported it, the potential for further gains stands out. It has been able to translate a near 26% gain in revenue into strong improvements in earnings, culminating in a debut dividend ahead of our estimates and a strong net cash position. Tellingly, Gordon Dadds is signalling “significant further growth” from acquisitions and, critically, organic sources such as cross-selling.
It retains the financial firepower to achieve the former and, on the evidence of the final results, the momentum to build on the latter. In advance of further news on acquisitions we are content to retain our previous forecasts. However, these still support a theoretical value more than the current level, a value which is further supported by comparisons with listed peers.