JPJ Group plc


£516.7m market cap

695p last close

JPJ Group is a leading online gaming operator mainly focused on bingo-led gaming targeted towards female audiences. Excluding Mandalay, at Q418, 50% of revenues were generated in the UK.

Investment summary

Driven by an impressive 42% organic growth in the Vera&John division, JPJ reported FY18 revenue growth of 10% to £319.6m with an EBITDA margin of 35.3%. International now comprises 43% of revenues and we expect this to increase as the company diversifies away from the UK. Cash generation remains strong and adjusted net debt/EBITDA has fallen from 3.6x in FY17 to 2.7x in FY18. Management is committed to a progressive dividend policy (once the ratio is sustainably below 2.5x) and would also consider share buybacks at that point. The stock is trading at the bottom of the peer group at 6.7x P/E and 8.2x EV/EBITDA for FY19e.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 304.7 108.6 78.2 103.9 6.7 5.0
2018A 319.6 112.7 92.7 118.5 5.9 4.8
2019E 318.6 95.8 81.3 101.0 6.9 5.9
2020E 336.1 99.0 85.5 105.8 6.6 5.7
Last updated on 22/03/2019
Industry outlook

In the UK, the government has raised the remote gaming duty from 15% to 21%, with implementation from April 2019. We estimate that this will reduce group EBITDA by £12m.

Last updated on 22/03/2019
Share price graph
Balance sheet
Forecast net debt (£m) 215.7
Forecast gearing ratio (%) 93
Price performance
Actual (2.1) 10.3 (14.4)
Relative* (2.2) 2.7 (16.5)
52-week high/low 1036.0p/590.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

Content on JPJ Group plc