In a retail environment dominated by customers switching to online shopping habits, Findel is reaping the benefits of the trend. Q3 results confirm underlying market share growth typical of online retail peers. However, its P/E rating remains on a par with terrestrial high street chains.
Written by
Findel |
Online performance, terrestrial valuation |
Q3 trading statement |
Retail |
30 January 2018 |
Share price performance
Business description
Analysts
Findel is a research client of Edison Investment Research Limited |
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In a retail environment dominated by customers switching to online shopping habits, Findel is reaping the benefits of the trend. Q3 results confirm underlying market share growth typical of online retail peers. However, its P/E rating remains on a par with terrestrial high street chains.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/16 |
410.6 |
24.8 |
23.0 |
0.0 |
9.4 |
0.0 |
03/17 |
457.0 |
22.2 |
20.4 |
0.0 |
10.6 |
0.0 |
03/18e |
478.1 |
26.0 |
25.0 |
0.0 |
8.6 |
0.0 |
03/19e |
506.4 |
28.5 |
27.3 |
0.0 |
7.9 |
0.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments.
Excellent sales growth confirmed in Q3
Studio’s like-for-like product sales growth of 11.0% for 42 weeks, while lower than H1’s 15.8%, is a better guide to underlying growth, as it is free of the timing differences on marketing activity within the H1 figure. This is excellent growth in the current consumer market, and is consistent with management’s plans and our forecasts, although trading in January is a little slower. Active customers grew 15% to 1.8m at December 2017, indicating good returns from TV and online marketing.
Significant further progress to the online model
The growth reflects Studio’s increasing success in transitioning to an online model, with 72% of orders online in Q3, significantly higher than 65% for Q317.
Credit business: Controlled expansion
A 13.7% year-on-year increase in credit account balances bodes well for financial services revenue, while strengthened management structure and tools give assurance that personal credit is responsibly controlled.
Education progresses on turnaround strategy
Findel Education reports encouraging trends from its strategy to upgrade its online presence and become competitive on price, including Far East sourcing.
Forecast assured and valuation unchanged
This trading statement gives us confidence in our full-year forecasts and we retain our valuation of 312p per share.
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Disclaimer
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Disclaimer
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Ellomay Capital is a renewable power and energy infrastructure company currently undertaking significant new development projects. 9M17 results showed significant EBITDA growth (+23% y-o-y), mostly reflecting an increase in solar production thanks to the normalisation in weather conditions. We expect 2018 to be a key year for project delivery as our revised forecasts point to very strong profit growth (EBITDA up 80% y-o-y), mainly driven by the commissioning of two new biogas projects in the Netherlands and full contribution from the solar PV acquisition in Israel. We see project delivery as the main catalyst for the stock.