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Ah, diving into the world of DCF valuations, are we? Let's swing through the jungle of numbers and methodologies to help you ace this case study. Based on the most helpful WSO content, here's how you can approach this thrilling adventure:

1) Approaching the DCF Valuation:

• Start with the Basics: Given you have Revenue, EBITDA, and OpEx numbers, you'll first need to calculate the Free Cash Flow (FCF). Remember, FCF = EBITDA - OpEx - Taxes + Depreciation & Amortization - Capital Expenditures - Changes in Working Capital. Since some of these numbers might not be directly provided, you'll need to make reasonable assumptions based on industry standards or the information available from the company's balance sheet at Companies House.

• Forecasting Cash Flows: With the current financials in hand, project the company's FCF for the next 5-10 years. Given the company's ambition to grow revenues to £15/£20m, use this as a basis for your revenue growth assumptions. Adjust EBITDA margins according to expected operational efficiencies or expansions.

• Terminal Value Calculation: After the explicit forecast period, calculate the terminal value assuming the company continues to generate cash flow into perpetuity. This can be done using the Gordon Growth Model or an exit multiple approach based on comparable companies.

• Discounting Cash Flows: Once you have your projected FCFs and terminal value, discount them back to their present value using the WACC.

2) Calculating the WACC:

• Cost of Equity: Since there's no debt in the business, the WACC, in this case, would essentially be the cost of equity. You can calculate the cost of equity using the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate). For the risk-free rate, use the yield on UK government bonds. Beta can be estimated based on comparable companies in the industry. The market return can be the historical average return of a relevant stock market index.

• No Debt: As there's no debt, you won't need to calculate the cost of debt or adjust for tax shields in your WACC calculation.

3) Additional Questions for Better Valuation:

1. What are the company's plans for reinvestment in technology and R&D?
2. Can you provide details on current and projected market share in the Construction and Rail/Transportation sectors?
3. Are there any regulatory changes expected that could impact the business?
4. Could you elaborate on the scalability of the business model and specific strategies for global expansion?
5. What are the key drivers behind the expected revenue growth to £15/£20m?
6. Are there any significant partnerships or contracts in the pipeline that could influence future revenues?
7. How does the company plan to manage OpEx in line with its growth targets?
8. Can you provide more details on the competitive landscape and the company's positioning within it?
9. Are there any potential acquisitions or strategic investments planned?
10. What are the projected capital expenditures for the next 5-10 years?

Remember, the key to a successful DCF analysis lies in making informed assumptions and clearly articulating your rationale for those assumptions. Good luck with your case study, and may your valuation swing closer to the true value of this intriguing company!

Sources: Walk me through a DCF, DCF Modeling Course ~ Pre-training text.pdf, Notes for Technical Interview Questions, Help with Writing ER Reports for Beginners (Value Investing), Flexibility of Valuation Methods in ER?