Positive recent news flow
Recent news flow from The Panoply has, in our view, been very positive. Firstly, the group announced the earnings accretive acquisition of Difrent Ltd (“Difrent”), a profitable digital transformation consultancy to the Healthcare and Social Care verticals. Secondly, it confirmed the revision of a number of the Share Purchase Agreements (“SPAs”) arising from certain historical acquisitions, which will reduce share dilution by 7.7m if the shares return to the 130p level as at the time of the announcement. Lastly, the AGM statement confirmed that H1 21E trading remains solid. We upgrade forecasts following the announcements, with the acquisition increasing adjusted EBITDA by 7% and 14% for FY 21E and FY 22E respectively.