HARWOOD WEALTH MANAGEMENT
(HW.:AIM) 180p

Gain to date: 16.1%

Original entry point: 
Buy at 155p, 8 November 2017

The highly acquisitive Harwood Wealth Management (HW.:AIM) released a trading a statement on 16 November saying it expects revenue and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) performance for the full year to be ahead of market expectations.

The company says its outperformance has been achieved by a mix of organic and acquired growth, although it did make seven acquisitions in its financial year so perhaps not an even mix.

Achieving over a 16% return on our Great Ideas trade in just over two weeks is a great start and we see more to come from the share price.

The upbeat statement led stockbroker N+1 Singer to upgrade its full year 2017 EBITDA forecasts by 11% to £4m.

Harwood has a lot of capacity for more deals following a £10m equity fundraising at the mid-year point and its balance sheet is healthy with £19m in cash.

N+1 Singer says that if the company keeps acquiring it could hit a £10m EBITDA run rate ‘in due course’.

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