Legal publishing margins have fallen from an estimated 25 % in 2008 to 14 % in 2011, and organic revenue growth has seen two years of organic revenue declines followed by
anaemic growth in 2011.
From a Liberum Capital report highlighted by Jason Wilson at rethinc.k: Legal publishing margins have fallen from an estimated 25 % in 2008 to 14 % in 2011, and organic revenue growth has seen two years of organic revenue declines followed by
anaemic growth in 2011.
Not exact matches
For Ed Balls, the American experience had been the most useful comparison; President Obama's emphasis on stimulus had meant healthier
growth than the
anaemic version in austerity Britain.
Whilst these latest indicators reflect the scale of government retrenchment in the public sector,
anaemic economic
growth, a beleaguered consumer sector and the continuing reluctance of financial institutions to increase their exposure to the built environment, are all restricting the private sector recovery.
And in a world of
anaemic GDP
growth & stagnant consumer incomes, stocks which offer the promise of predictable and / or accelerated
growth can be priced even more stratospherically.
As long as revenue (& earnings momentum) is maintained,
growth investors will ignore
anaemic cash flow, potentially fudged accounting, dilution, any potential increases in leverage, and keep buying at almost any price... the optimistic outcome is for FDP to eventually grow into its valuation.
Continued investment & revenue
growth should see further operating margin improvement — but it promises to be a hard - won battle, as revenue
growth remains
anaemic.
In reality, most listed companies out there — many of which are ripe for disruption & boast
anaemic underlying
growth rates — trade for similar & even higher multiples!?