Good morning,
Today I’m presenting a company that, at first glance, looks like an unattractive investment. Its principal business is in structural decline, group revenue is falling, and the balance sheet looks exposed.
But beneath the surface is a far more interesting setup.
This company owns a growing software business, generates more cash than headline figures suggest, and is divesting assets that should meaningfully simplify the business.
My base case valuation suggests 39% upside from current levels, but potential returns could be considerably higher (100%+ upside) if management delivers on its own targets.
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Let’s get into it…
