Contract momentum

Underlying momentum remains healthy, with 24 new contract wins in the eight months to 31 August, up from 21 in the previous corresponding period. LendingTools (LT), which was acquired in April, has been performing well and management is increasingly buoyant on its prospects. We have eased our Corporate Treasury revenue forecasts, due to the lack of an abnormally large contract this year that would require a higher level of professional services. We are maintaining our forecasts for LT despite the 10% decline in the dollar against the euro. Our FY18 and FY19 EPS move higher on lower tax assumptions. Given the attractive growth opportunities, strong cash generation and healthy balance sheet, we continue to believe the shares are attractive on c 14x our FY18e earnings.