ALU +19.75%: The Printed Circuit Board (PCB) design platform reported FY22 results after market yesterday and they were above our expectations. Revenue delivered at $221m (+3% ahead) and EBITDA $81.1m (+8% ahead) while their FY23 guidance is also +8% better than consensus. They have a longer-term revenue target for $500m by FY26 and yesterday they said that the target is now on an organic basis versus the prior assumption that was supported by a 10-20% boost from acquisitions, so while M&A is still in play, that would add to that target – in other words, a further upgrade by stealth is the way we would describe it. The rest of the result was very solid, margins expanding and the broader trends here are good and growing – this is the best result we’ve seen in this period so far, plus they implied that guidance was conservative.
MM remains long and bullish ALU
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