DAVY VIEW

This morning’s statement marks the first step for Datalex in restoring the market’s confidence in its growth story. The swiftness of its response to January’s warning, in particular launching a cost restructuring programme to be carried out by end-H1 2019, highlights management’s ambition to rapidly address the issues. For investors willing to forego the short-term risks, the adjusted EBITDA guidance for 2020 ($12-13.5m) implies an attractive EV/EBITDA multiple of less than 5x.