Price increases, new product launches, implementation of additional efficiency measures, and an easing of COVID-19 related restrictions all underpin our expectation of a much stronger H2 for Strix Group. As such, we are leaving adj. EPS unchanged for FY22 despite macro and Russia-related headwinds during H1. We estimate a broadly unchanged outcome with adj. PAT and EPS declining modestly by an average of 0.9% to £32.1m and 15.3p, respectively for FY22.
We continue to believe that the target of doubling revenues in the five years to FY25 remains on course. Strix also continues to seek the purchase of either complementary technologies or companies, aided by its strong balance sheet.
We expect the stronger H2 bias in trading to result in only a modest adjustment to our fair value to 275p (previously 284p) because of the measures undertaken. This is despite tweaking our estimates to reflect the larger than anticipated reduction in revenues associated with Russia and peripheral states.
Our fair value/share at 275p continues to be at a significant premium (nearly 50%) to the current price.
