DAVY VIEW

The Volution machine powers on with the group reporting adjusted operating profit growth of 22% for the six months to end-January. The group’s consistent outperformance can be traced to the potent combination of vigorous organic growth and the stimulus from an active M&A strategy. The recent ACI deal continues the latter theme and a first-time six-month contribution in the second half of the current financial year and in H1 fiscal 2027 will help sustain the group’s earnings momentum. The recent pull-back has left the stock 12% below its recent peak after it went over 700p for the first time and clearly makes the valuation case more interesting.