Solid trading and financial position
The Panoply’s trading update for the year to March 2020 confirms that H2 trading was solid, and that the Board expects to report revenue and EBITDA in line with market expectations. The group’s financial position remains robust and will be enhanced by cash collections from the solid 20E trading performance. The Panoply is actively involved in the response to the COVID-19 pandemic, with the business being only minimally impacted so far. Overall, we believe the announcement contains a number of positive messages. However, with ongoing macro-driven uncertainty over the medium/ longer-term outlook, we revise forecasts. Our FY 21E and FY 22E EBITDA estimates are reduced by 37% and 21% respectively.