Last close As at 05/08/2026
CAD50.97
▲ −0.03 (−0.06%)
Market capitalisation
CAD956m
Research: Industrials
In FY23 Information Services Corporation (ISC) remained on a positive trajectory of securing new contracts and customers, despite prevailing macroeconomic headwinds and a subdued Canadian property market. We expect this momentum to continue in FY24, bolstered by the Services division, the key organic engine of the group. Management has reaffirmed FY23 revenue and adjusted EBITDA guidance of C$207–212m (Edison: C$210m) and C$71–76m (Edison: C$75m), respectively. In addition, FY24 guidance has been introduced; our FY24e adjusted EBITDA estimate of C$90m falls within the guided range of C$83–91m, while our conservative FY24e revenue estimate of C$230m is marginally below the guided C$240–250m range. We will update our estimates following the release of FY23 results in early March.
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Information Services Corporation |
Services division set to be a key organic driver |
Trading update |
Industrial support services |
5 February 2024 |
Share price performance
Business description
Analysts
Information Services Corporation is a research client of Edison Investment Research Limited |
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In FY23 Information Services Corporation (ISC) remained on a positive trajectory of securing new contracts and customers, despite prevailing macroeconomic headwinds and a subdued Canadian property market. We expect this momentum to continue in FY24, bolstered by the Services division, the key organic engine of the group. Management has reaffirmed FY23 revenue and adjusted EBITDA guidance of C$207–212m (Edison: C$210m) and C$71–76m (Edison: C$75m), respectively. In addition, FY24 guidance has been introduced; our FY24e adjusted EBITDA estimate of C$90m falls within the guided range of C$83–91m, while our conservative FY24e revenue estimate of C$230m is marginally below the guided C$240–250m range. We will update our estimates following the release of FY23 results in early March.
Year end |
Revenue (C$m) |
EBITDA (C$m) |
PBT* (C$m) |
EPS* |
DPS |
P/E |
Yield |
12/21 |
169.4 |
67.8 |
51.4 |
2.25 |
0.83 |
10.7 |
3.5 |
12/22 |
189.9 |
64.4 |
46.5 |
1.95 |
0.92 |
12.3 |
3.8 |
12/23e |
210.1 |
75.0 |
45.8 |
1.92 |
0.92 |
12.5 |
3.8 |
12/24e |
230.2 |
89.8 |
50.9 |
2.12 |
0.92 |
11.3 |
3.8 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
In ISC’s recent trading update, management reaffirmed FY23 revenue and adjusted EBITDA guidance of C$207–212m and C$71–76m, respectively. Our corresponding FY23e forecasts of C$210.1m and C$75.0m lie comfortably within both ranges. Our FY23 forecast revenue and adjusted EBITDA growth of 10.7% and 16.5%, respectively, is largely attributable to the Saskatchewan Registries extension alongside a full-year contribution from last year’s acquisitions and strong organic growth from the Services division. Although our forecast FY23 basic EPS remains broadly flat at C$1.92, attributable to a substantial increase in net finance costs coupled with a rise in amortisation from the extension, we expect incremental growth from the Master Service Agreement (MSA) extension to come through in 2024, with an EPS forecast of C$2.12.
The company has also introduced FY24 revenue and adjusted EBITDA guidance of C$240–250m (Edison: C$230m) and C$83–91m (Edison: C$90m), respectively. These projections signify substantial year-on-year increases of up to 18% and 20%, respectively, compared to FY23 guidance. This anticipated growth is driven by robust organic expansion and ongoing customer acquisition efforts in the Services division. Furthermore, Registry Operations should benefit from a full-year contribution of introduced annual CPI fee adjustments from the MSA extension, which should somewhat offset the expected plateau in transaction volumes. The company maintains its focus on deleveraging the balance sheet and achieving a targeted net debt/EBITDA of 2.0–2.5x.
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Research: Healthcare
Oxford Cannabinoid Technologies (OCT) has announced its H124 results (to end-October 2023), an eventful period for the company, marked by successful clinical progression of lead asset OCT461201, albeit with some funding challenges. Key highlights included the initiation and subsequent positive safety data from OCT’s first Phase I clinical trial (Programme 1) and a foray into oncology (Programme 4). Tight funding conditions halted subsequent clinical progress, although the recently announced £1.3m R&D tax rebate, £1.2m fund-raise and planned clinical progression for second asset OCT130401 (Programme 2) offer signs of a potential revival in activity. We estimate that the fresh capital will support runway extension into Q4 CY24. Our valuation of the company stands at £25.3m or 2.6p per share, although we estimate the company needing additional funds towards the end of CY24 to further the company’s clinical pipeline.