Ocean Outdoor Share Discussion Threads

[km18] 16/2/2022 13:58

Valuation looks reasonable with PE ratio at 20, although this is not particularly cheap for the sector. The company looks to have pretty robust growth both delivered over the past few years and potential looking forward. The business will also return to net profit in FY21 for the first time since FY18. With the possibility of an acquisition premium looming, and an impressive rebound already in progress, the share certainly looks potentially interesting to BUY....from WealthOracleAM

[km18] 16/2/2022 13:57

Ocean Outdoor issued a FY trading update this morning confirming that performance has rebounded from COVID. Group revenue was up 44.3% to £124.4m from £86.2m. Adjusted EBITRDA was up to £18.6m from a £(0.4)m loss. All territories recorded a strong Q4, the Group's key trading period, with revenues up by 67.5% compared to Q4 2020 and 7.2% compared to Q4 2019. The outlook was also positive, management currently expect revenue and adjusted EBITDA for FY2022 to be ahead of FY2019 reflecting the return of audiences and brands to OOH environments.

Interestingly a strategic review has also been initiated to evaluate potential strategic and financial alternatives to maximise shareholder value as the Board and management feel that Ocean is undervalued. The Board is continuing to evaluate a number of options, including a potential sale, following interest and conditional offers received which may or may not lead to a transaction. Another update will be made when appropriate.