A Mission-Critical UK Business for 5x FCF
Also includes double digit growth and a 3.3% SH yield.
I found a way to access Bloomberg’s no.1 competitor for 90% less. Here’s how →
Today’s company is a dream for anyone well versed in the trials and tribulations of operating a business.
Nearly 70% of revenue is recurring.
Customer churn is around 1%.
Existing customers are still spending more each year, with net revenue retention above 100%.
Contracts typically run for five years or longer.
The products sit inside legally required, mission-critical workflows that some of the UKs largest businesses rely on every day.
Replacing them would mean changing physical hardware, migrating years of data, rebuilding integrations and retraining staff across entire operations.
The best part is that we can buy this business for roughly 5x its current owner-FCF.
Despite operating for 40 years and being deeply embedded into some of the world’s largest organisations, the market is pricing it like it will soon be dead.
But, above all, it has the coolest stock-ticker I’ve ever seen.
Let’s take a look…