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Summary
- Sanne Group PLC had registered a growth of 7.3% at constant currency in underlying net revenue to £169.7 million during FY20.
- SNN had a robust free cash flow of £33.6 million during FY20.
- The Board has declared a final FY20 dividend of 9.9 pence per share, taking the total FY20 dividend to 14.7 pence per share.
- SNN had completed five acquisitions during FY20.
Sanne Group PLC (LON:SNN) is the LSE listed financials stock. SNN’s shares have generated a return of approximately 22.81% in the last 12 months. It is listed on the FTSE 250 Index. SNN was incorporated in 2015.
Business Model
Sanne Group PLC is the FTSE 250 listed Company, which is the leading provider of outsourced alternative assets and corporate services. Moreover, SNN operates across four broader geographic segments –
- Europe, Middle East, and Africa (EMEA)
- Asia Pacific & Mauritius (APM)
- North America
- Channel Islands (CI)
Financial Highlights (for 52 weeks ended 31 December 2020, as of 19 March 2021)
(Source: Company result)
- SNN had reported a 7.3% growth at constant currency in the underlying net revenue to £169.7 million during FY20 despite various business challenges thrown by the Covid-19 pandemic. On a statutory basis, the turnover grew by 9.0% at constant currency to £174.9 million during FY20.
- Regarding the profitability, the underlying operating profit grew by 8.4% at constant currency during FY20, while on a statutory basis, it had shown a growth of 56.8% at constant currency.
- The underlying diluted earnings per share remained at 25.4 pence per share during FY20.
- The underlying operating margin rose by 100 basis points to 28.3% during FY20.
- The free cash flow was £33.6 million during FY20 in comparison to £35.1 million during FY19. SNN had experienced strong cash generation illustrating the underlying cash conversion of 99.5%.
- SNN had secured annualized new business revenue of around £22.5 million during FY20, while it was £24.5 million during FY19.
- Moreover, SNN has a progressive dividend policy of paying regular dividend payments. The Board has declared a final FY20 dividend of 9.9 pence per share, taking the total FY20 dividend to 14.7 pence per share.
- Meanwhile, SNN had completed the acquisition of Inbhear in Ireland and Cayman. It had also acquired Avalon in Cayman during the period.
- The Company had announced a minority investment in Alternative Assets Accounting Software Inc during the period.
- SNN had managed to show a 40% increase in refinancing facilities during the period. Now, it has £210 million of committed funding.
Share Price Performance Analysis of Sanne Group PLC
(Source: EODHD/Others, chart created by Kalkine group)
SNN’s shares were trading at GBX 623.00 and were up by close to 8.54% against the previous closing price as of 19 March 2021 (before the market close at 12:52 PM GMT). SNN's 52-week Low and High were GBX 476.50 and GBX 712.00, respectively. Sanne Group PLC had a market capitalization of around £852.84 million.
Business Outlook
The Company had shown resilient financial performance during 2020. Moreover, the Company had expected to carry the positive momentum of Q4 FY20 to continue in 2021, illustrating signs of market recovery. SNN remained confident regarding the business performance during FY21 and anticipated to show double-digit organic revenue growth during FY21. The Company had launched several new products during 2020 and accelerated its progress on strategic priorities. Furthermore, SNN had penetrated several new geographies and strengthened its global footprint through five key acquisitions made during 2020. Meanwhile, the long-term prospects of the alternative assets industry remain attractive.
Overall, the board remained upbeat regarding the Company’s medium and long-term prospects, driven by a sustainable business model and robust demand for private assets alternatives.
