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Excellent execution breeds huge confidence in digital star’s longer-run plans
Thursday 08 Jul 2021 Author: Steven Frazer


Gain to date: 217%

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

Analysts have once again had to rip up forecasts for public sector digital enabler The Panoply Holdings (TPX:AIM) after the company said 2022 results would be ‘significantly ahead of current market expectations’.

For the year to 31 March 2021, revenue soared 62% and adjusted earnings before interest, tax, depreciation and amortisation jumped 87%, or 19% and 31% respectively if we strip out the benefit of acquisitions.

The period saw four contract wins worth £3 million or more versus none in the previous year, while 11 customers were billed more than £1 million, compared to six the year before. Average contract spend leapt 48% to £176,000.

Stifel has raised its revenue estimates by 12% for the current financial year and the following year, although higher costs will drag on profit progress.

Chief executive Neil Gandhi is getting more ambitious, rolling out a target for a £200 million revenue run-rate by 2025 and plans to unify product and services branding which he anticipates will streamline the sales process far better. This will probably see the company change its name, although we’ll hear more on this in September.

SHARES SAYS: Still a buy.

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