Comparables for BTS’s Q1(24) are fairly easy. Q1(23) was a challenging quarter, with organic growth at 2%. In addition, profitability was poor and the margin came in at just 8.2%. Following this weak Q1(23), many measures were identified and implemented, leading to the company’s record-strong Q4 report. We expect the solid profitability seen in Q4(23) to have continued. We believe BTS will continue its progress towards its stated guidance. Of the past ten instances where BTS has issued guidance, it has maintained it seven times, raising it in conjunction with Q3 on six occasions. We thus see upside potential in our estimates. When it has lifted guidance with Q3, its EBITA growth has been 26% on average.

On the whole, we leave our estimates across our forecast period unchanged. We believe the company will see further margin expansion for the current year given the measures it undertook in 2023. We also believe it likely that growth will accelerate during 2024 and 2025.

In an interesting position