Published on: June 29, 2023
Trading in line; forecasts reintroduced
Aferian’s update yesterday, for the six months to May 2023, confirmed that trading remains in line with comments provided in the 31 May commentary. With demand in the 24i business remaining strong, earnings quality and visibility continue to improve. Furthermore, the release signals management’s expectation of a return to growth (sequentially) in devices in H2 23. The cost base has been significantly reduced, and the release also confirms that the group remains in compliance with its banking covenants. Overall, we believe this is a positive announcement from Aferian and we reintroduce forecasts on the back of renewed confidence.