The Panoply Holdings (TPX:AIM) 200p

Gain to date: 122%

Original entry point: Buy at 90p, 6 August 2020

It has been a quite astonishing ride for The Panoply Holdings (TPX:AIM) and we could barely have timed better our original Great Idea. To more than double in value is impressive, but to do so in four months is truly remarkable.

Knock-out interim results to 30 September 2020 only bolster our confidence in the firm’s fantastic prospects, with £21.2 million of revenue meaning 18% organic growth year-on-year. Underlying adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) shot up 37% to £2.9 million.

Clearly The Panoply has benefitted from accelerated digital transformation trends through the pandemic, but operating efficiencies have also paid off. Seventy percent of revenue comes from the public sector, but rather than new business being bogged down in bureaucracy, as you might imagine, contracts are being won and implemented in weeks not months.

Also encouraging, founder Neal Gandi confirmed to Shares that the company’s impressive cash generation means future acquisitions, a key part of the growth story, will not need extra funding, capping the threat of dilution to existing shareholders.

SHARES SAYS: The Panoply may be small, but it does not lack in ambition or opportunity. Still a buy even after its stunning run.

‹ Previous2020-12-03Next ›