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discoverIE Group — Accretive acquisition drives FY19 growth

discoverIE Group (LSE: DSCV)

Last close As at 04/11/2024

GBP6.70

▲ 5.00 (0.75%)

Market capitalisation

GBP641m

More on this equity

Research: TMT

discoverIE Group — Accretive acquisition drives FY19 growth

discoverIE has further expanded its design and manufacturing business with the acquisition of Santon, a Dutch DC switch manufacturer, for initial consideration of €27m/£23.7m. The deal nearly doubles discoverIE’s sales into the renewables sector as well as increasing the level of business from Asia. Management expects the deal to be earnings accretive in FY19. We forecast that the acquisition will increase FY19e normalised EPS by 9% and will result in a net debt/EBITDA ratio of 1.7x by the end of FY19.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

discoverIE Group

Accretive acquisition drives FY19 growth

Acquisition

Electronic & electrical equipment

5 February 2018

Price

375p

Market cap

£266m

€1.14:NOK10.92:£1

Net debt (£m) at end H118

37.6

Shares in issue

70.9m

Free float

96%

Code

DSCV

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

0.8

15.3

64.5

Rel (local)

3.7

17.1

56.2

52-week high/low

398p

213p

Business description

discoverIE (formerly Acal plc) is a leading international designer and manufacturer of customised electronics to industry, supplying customer-specific electronic products and solutions to 25,000 industrial manufacturers.

Next events

Capital markets day

15 March 2018

FY18 trading update

April 2018

Analysts

Katherine Thompson

+44 (0)20 3077 5730

Dan Ridsdale

+44 (0)20 3077 5729

discoverIE Group is a research client of Edison Investment Research Limited

discoverIE has further expanded its design and manufacturing business with the acquisition of Santon, a Dutch DC switch manufacturer, for initial consideration of €27m/£23.7m. The deal nearly doubles discoverIE’s sales into the renewables sector as well as increasing the level of business from Asia. Management expects the deal to be earnings accretive in FY19. We forecast that the acquisition will increase FY19e normalised EPS by 9% and will result in a net debt/EBITDA ratio of 1.7x by the end of FY19.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

03/16

287.7

15.2

17.8

8.1

21.0

2.1

03/17

338.2

17.8

19.9

8.5

18.9

2.3

03/18e

391.0

21.6

21.6

9.0

17.4

2.4

03/19e

427.6

25.0

24.6

9.5

15.3

2.5

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Acquisition of Dutch DC switch manufacturer

discoverIE has acquired Santon Group, a designer and manufacturer of custom switches for electronic applications. Its DC switches are used to isolate electrical circuits; for example, they are used in solar panel systems to isolate the power-generating solar panels from the AC network (ie the grid). Santon is headquartered in Rotterdam, the Netherlands, where it also has its manufacturing facility and it has sales offices in Wales and Germany. discoverIE is paying €27m/£23.7m initial consideration (€26m/£22.8m cash plus €1m/£0.9m from the issue of 0.22m shares) and will also reimburse the vendor €2.5m/£2.2m for a recently undertaken manufacturing automation project. Contingent consideration of €22.5m/£19.9m is payable over three years, subject to achieving growth targets. The deal was funded using the existing debt facility.

Earnings accretive from FY19

Santon generated CY16 revenues of €24.4m/£20.0m and grew in CY17. CY16 normalised operating profit (excluding finance charges, exceptional items and shareholder costs) was €3.2m/£2.6m (13.1% margin vs FY17 group margin of 5.9% and D&M margin of 11.5%). We have revised our forecasts, with revenues up 0.8% in FY18 and 6.2% in FY19. While FY18 normalised EPS is unchanged, we lift our FY19 forecast by 8.9%. We forecast end-FY19 net debt to increase from £24.4m to £58.6m, which equates to a net debt/EBITDA ratio of 1.7x, within the company’s target gearing range of 1.5-2.0x.

Valuation: Still trading at a discount

On our revised forecasts, the stock is trading on an FY19e P/E of 15.3x, at a c 23% discount to the peer group average. Continued growth in the proportion of revenue generated from design and manufacturing should support operating margin expansion, and should help to reduce the valuation discount. The stock is also supported by a dividend yield of more than 2%.

Changes to forecasts

The table below summarises the changes to our estimates.

Exhibit 1: Changes to forecasts

£m

FY18e old

FY18e new

Change

y-o-y

FY19e old

FY19e new

Change

y-o-y

Revenues

388.0

391.0

0.8%

15.6%

402.6

427.6

6.2%

9.4%

Design & manufacturing

217.1

220.1

1.4%

25.4%

228.0

253.0

11.0%

14.9%

Custom supply

170.8

170.8

0.0%

5.1%

174.6

174.6

0.0%

2.2%

Gross margin

32.2%

32.2%

0.0%

(0.6%)

32.4%

32.4%

0.0%

0.2%

EBITDA

28.6

29.0

1.4%

19.3%

29.9

34.4

15.0%

18.6%

EBITDA margin

7.4%

7.4%

0.0%

0.2%

7.4%

8.0%

0.6%

0.6%

Underlying operating profit*

23.9

24.2

1.0%

20.8%

24.9

28.4

14.0%

17.4%

Underlying operating profit margin*

6.2%

6.2%

0.0%

0.3%

6.2%

6.6%

0.5%

0.5%

Normalised operating profit

24.5

24.8

1.0%

20.2%

25.7

29.2

13.6%

17.8%

Normalised operating margin

6.3%

6.3%

0.0%

0.2%

6.4%

6.8%

0.4%

0.5%

Normalised PBT

21.6

21.6

0.0%

21.5%

22.9

25.0

9.1%

15.5%

Normalised net income

16.2

16.2

0.0%

19.5%

17.1

18.7

9.2%

15.5%

Normalised EPS (p)

21.6

21.6

(0.0%)

8.7%

22.6

24.6

8.9%

13.7%

Reported EPS (p)

13.6

12.1

(11.1%)

126.8%

17.7

13.9

(21.2%)

14.9%

Net (debt)/cash

(29.9)

(56.2)

87.9%

87.3%

(24.4)

(58.6)

140.3%

4.3%

Net debt/EBITDA (x)

1.0

1.7

0.8

1.7

Source: Edison Investment Research. Note: *Includes share-based payments.


Exhibit 2: Financial summary

£m

2013

2014

2015

2016

2017

2018e

2019e

Year end 31 March

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

177.4

211.6

271.1

287.7

338.2

391.0

427.6

Cost of Sales

(123.0)

(148.6)

(186.7)

(195.1)

(227.2)

(264.9)

(289.1)

Gross Profit

54.4

63.0

84.4

92.6

111.0

126.1

138.6

EBITDA

 

 

7.4

9.1

16.6

19.8

24.3

29.0

34.4

Operating Profit (before am, SBP and except.)

6.1

7.7

14.0

17.0

20.6

24.8

29.2

Operating Profit (before am. and except.)

 

5.5

7.1

13.4

16.3

20.0

24.2

28.4

Amortisation of acquired intangibles

(0.7)

(1.0)

(2.1)

(2.8)

(3.9)

(4.9)

(7.4)

Exceptionals

(3.4)

(0.9)

(5.2)

(2.1)

(8.4)

(3.9)

(3.2)

Share-based payments

(0.6)

(0.6)

(0.6)

(0.7)

(0.6)

(0.6)

(0.8)

Operating Profit

1.4

5.2

6.1

11.4

7.7

15.4

17.7

Net Interest

(0.5)

(0.8)

(1.6)

(1.8)

(2.8)

(3.1)

(4.2)

Profit Before Tax (norm)

 

 

5.6

6.9

12.4

15.2

17.8

21.6

25.0

Profit Before Tax (FRS 3)

 

 

0.7

4.2

4.3

9.4

4.8

12.1

13.3

Tax

1.4

(0.5)

(1.4)

(2.2)

(1.3)

(3.5)

(3.5)

Profit After Tax (norm)

4.6

6.0

10.0

11.8

13.6

16.2

18.7

Profit After Tax (FRS 3)

2.1

3.7

2.9

7.2

3.5

8.6

9.9

Average Number of Shares Outstanding (m)

39.2

43.1

57.6

63.3

65.4

70.7

70.9

EPS - normalised & diluted (p)

 

 

11.3

13.1

16.4

17.8

19.9

21.6

24.6

EPS - IFRS basic (p)

 

 

(4.8)

3.0

5.0

11.4

5.3

12.1

13.9

EPS - IFRS diluted (p)

 

 

(4.7)

2.8

4.8

10.9

5.1

11.4

13.0

Dividend per share (p)

6.2

6.8

7.6

8.1

8.5

9.0

9.5

Gross Margin (%)

30.7

29.8

31.1

32.2

32.8

32.2

32.4

EBITDA Margin (%)

4.2

4.3

6.1

6.9

7.2

7.4

8.0

Operating Margin (before am, SBP and except.) (%)

3.4

3.6

5.2

5.9

6.1

6.3

6.8

BALANCE SHEET

Fixed Assets

 

 

30.9

33.1

88.6

108.4

122.2

147.9

141.5

Intangible Assets

24.2

25.5

69.9

88.2

100.7

126.6

118.8

Tangible Assets

3.1

3.5

13.8

14.7

16.0

15.8

17.3

Deferred tax assets

3.6

4.1

4.9

5.5

5.5

5.5

5.5

Current Assets

 

 

81.8

92.7

127.3

128.3

149.6

164.6

170.7

Stocks

19.3

19.4

39.8

42.9

50.1

57.8

63.3

Debtors

44.7

48.3

60.2

65.5

77.3

86.8

94.9

Cash

17.8

18.1

26.7

19.9

22.2

20.0

12.6

Current Liabilities

 

 

(50.9)

(58.3)

(62.1)

(61.7)

(78.4)

(95.2)

(101.6)

Creditors

(46.6)

(51.5)

(61.9)

(60.9)

(77.1)

(89.9)

(96.3)

Short term borrowings

(4.3)

(6.8)

(0.2)

(0.8)

(1.3)

(5.3)

(5.3)

Long Term Liabilities

 

 

(10.3)

(19.0)

(61.1)

(73.1)

(69.6)

(93.3)

(86.5)

Long term borrowings

(1.7)

(9.5)

(45.5)

(57.2)

(50.9)

(70.9)

(65.9)

Other long term liabilities

(8.6)

(9.5)

(15.6)

(15.9)

(18.7)

(22.4)

(20.6)

Net Assets

 

 

51.5

48.5

92.7

101.9

123.8

124.1

124.2

CASH FLOW

Operating Cash Flow

 

 

5.7

6.1

6.6

14.6

20.3

19.2

27.1

Net Interest

(0.6)

(0.8)

(1.6)

(1.8)

(2.8)

(3.1)

(4.2)

Tax

(1.4)

(0.9)

(3.3)

(4.3)

(3.0)

(5.4)

(6.3)

Capex

(1.3)

(1.4)

(2.5)

(2.3)

(3.4)

(3.7)

(6.2)

Acquisitions/disposals

(0.5)

(9.2)

(37.3)

(19.8)

(11.8)

(27.0)

(6.4)

Financing

5.7

0.1

52.7

0.0

13.6

0.0

0.0

Dividends

(2.3)

(2.7)

(3.6)

(4.9)

(5.2)

(6.2)

(6.5)

Net Cash Flow

5.3

(8.8)

11.0

(18.5)

7.7

(26.2)

(2.4)

Opening net cash/(debt)

 

 

6.3

11.8

1.8

(19.0)

(38.1)

(30.0)

(56.2)

HP finance leases initiated

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.2

(1.2)

(31.8)

(0.6)

0.4

0.0

0.0

Closing net cash/(debt)

 

 

11.8

1.8

(19.0)

(38.1)

(30.0)

(56.2)

(58.6)

Source: discoverIE, Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by discoverIE Group and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

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Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by discoverIE Group and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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TMT

discoverIE Group — Orders stabilising, EPS & margin targets on track

TMT

discoverIE Group — Moving into the next growth phase

TMT

discoverIE Group — FY25 earnings expectations maintained

TMT

discoverIE Group — FY24 demonstrates resilient business model

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Filtronic — On track to meet FY25 expectations

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Verve Group — Strong momentum sustained through Q3

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Freelancer — Escrow drives strong volume growth in Q324

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Softcat — FY24 shows the strength of Softcat’s model

SNP Schneider-Neureither & Partner — Focusing on organic growth in FY18

SNP recorded c 14% organic growth in Q4 and a c 6% EBITDA margin. FY17 group revenue of around €122m was €2m ahead of our forecasts while EBITDA, at €2m, was €1m below our forecast. We have edged up our revenue forecasts while maintaining profit forecasts. After a hectic FY17, with multiple acquisitions, fund-raisings and significant corporate change, we understand that management intends to focus on organic growth in FY18. Given the attractive industry drivers and the potential for margin recovery, the shares look attractive on c 21x our FY19e earnings.

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