Hardman & Co: Strong profit growth path confirmed

RNS Number : 0940J

Non-Standard Finance PLC

27 March 2018

 

Hardman & Co: Strong profit growth path confirmed

Strong profit growth path confirmed: Until the F2017 results, NSF was, to a certain degree, a 'jam tomorrow' story, with infrastructure investment holding back returns. This is significantly complete and, with its market-leading franchises and payback from historical investments starting to come through, its target 20% EBIT ROA and minimum 20% loan book growth should start to be achieved in 2018 for Loans at Home, and in 2019/20 for the other divisions. Rolling forward the valuation base year has a big effect due to the strong forecast profit growth (2019E P/E ca.10x vs. ca.17x 2018E). The average of our absolute measures (see assumptions in valuation section) is now 101p.Please click here for the full report:

http://hardmanandco.com/docs/default-source/company-docs/non-standard-finance/27.03.18-strong-profit-growth-path-confirmed.pdf

To contact us:    Hardman & Co 35 New Broad Street London EC2M 1NH

Analysts: Mark Thomas  [e-mail] Telephone: [phone] Follow us on Twitter @HardmanandCo

www.hardmanandco.com

About Hardman & Co: For the past 20 years Hardman has been producing specialist research designed to improve investors' understanding of companies, sectors, industries and investment securities. Our analysts are highly experienced in their sectors, and have often been highly rated by professional investors for their knowledge. Our focus is to raise companies' profiles across the UK and abroad with outstanding research, investor engagement programmes and advisory services. Some of our notes have been commissioned by the company which is the subject of the note; this is clearly stated in the disclaimer where this is the case.

Hardman Research Ltd, trading as Hardman & Co, is an appointed representative of Capital Markets Strategy Ltd and is authorised and regulated by the Financial Conduct Authority; our FCA registration number is 600843. Hardman Research Ltd is registered at Companies House with number 8256259.

Our research is provided for the use of the professional investment community, market counterparties and sophisticated and high net worth investors as defined in the rules of the regulatory bodies.  It is not intended to be made available to unsophisticated retail investors. Anyone who is unsure of their categorisation should consult their professional advisors. This research is neither an offer, nor a solicitation, to buy or sell any security. Please read the note for the full disclaimer.

 

END

 

 

NRABDLFLVXFZBBQ