The recent trading update revealed a likely 2009 revenue fall of £0.6m to £29.7m from 2008. However, improved cost control suggests our previous 2009 EBITDA forecast of £2.2m will be met. Going forward, improvement in the gross margin and at least another £5m of sales are needed to break even at the EBITDA level. Our revised financial model suggests an NPV of £47m, assuming 62% gross margin and 15% annual sales growth, discounted at 12.5%.

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