Sanne Group posts healthy rise in first-half numbers
Sanne Group
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16:23 04/08/22
Sanne Group posted a healthy improvement in revenue and earnings in its first half on Thursday, with revenue rising 104% to £56.3m and underlying operating profit up 109% to £21.5m.
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The FTSE 250 provider of trust and fund administration services said its operating profit was ahead 59% at £13.2m for the six months to 30 June, with its underlying profit before tax up 105% to £20.9m and profit before tax rising 54% to £12.5m.
Its underlying operating profit margin was 38.2% for the period, compared to 37.3% for the first six months of last year, while its underlying diluted earnings per share improved 60% year-on-year to 13p.
The company’s underlying operating cash conversion fell 18.4% to 98.9%.
Sanne Group’s board confirmed a 31% uplift in the interim dividend per share, when compared to that paid at the half-year last year, to 4.2p.
“We are pleased with the performance of the group in the first half,” said Sanne Group chief executive officer Dean Godwin.
“We have continued to see strong growth in new business wins, with the increase in cross-selling opportunities across our regional business segments particularly encouraging, and we have a healthy pipeline moving into the second half of the year.”
On the operational front, the board reported “continued strong performance” within each of the group's business segments.
It said new business with annualised fees of approximately £10m was won in the first six months, with a healthy pipeline continuing into the second half.
The integration of prior year acquisitions was said to be progressing “well”, with a continued focus into the second half.
Sanne confirmed the acquisition of IFS in Mauritius had now completed, broadening the company’s geographic footprint and “significantly increasing” its scale and expertise.
The board also claimed it had continued to strengthen its senior management team to deliver “strategic capacity”, and had also successfully implemented a new global operating structure.
Sanne explained that the development and expansion of its fund technology capability continued to be a key focus.
Larger office space had now been secured in Hong Kong, Shanghai and Singapore to support growth in the Asia-Pacific region, the board said, adding that due to a change in the group's expected effective tax rate, it now expected to deliver underlying earnings per share for the full year “marginally ahead” of its previous expectations.
“Our recent strategic acquisitions are being successfully integrated and already yielding benefits,” Dean Godwin added.
“As our business grows, during the second half of the year, we will continue to invest in our people, processes and technology.”