2 August 2018
Sanne Group plc ("SANNE" or "the Group")
Trading statement and notice of results
SANNE, the global provider of alternative asset and corporate services, today provides a trading update for the six months ended 30 June 2018.
The Group's core business lines have continued to see both good growth in revenues on a constant currency basis as well as further momentum in securing new business. New business won in the first half from both new and existing clients totalled approximately £11.5 million (2017: £10.0m) on a projected annualised fee basis.
The Group's Alternatives businesses saw good organic performance in EMEA and North America. EMEA also benefited from the acquisition of LIS in Luxembourg which completed in February 2018 and is performing well. Continued investment in growth initiatives in our Asia Pacific and Mauritius region following the acquisition of IFS in 2017, has delivered organic growth (on a constant currency basis) in the first half of 2018. This business is performing in line with expectations and growth will increase as the benefits of these initiatives are realised.
The Group's Corporate and Private Client (CPC) business has been broadly flat on the same period in the prior year. The corporate and institutional businesses performed in line with expectations offsetting the impact of a decline in the private client business.
The first half performance across the Group's different businesses as well as the unusually high first half weighting of last year's results means that the Group's organic growth expectations for the full year will exceed the first half organic growth rate, on a constant currency basis. Overall, revenues for the full year are expected to return to the Group's traditional pattern of being second half weighted driven by continued organic growth momentum.
As previously announced, the Group continues to invest in infrastructure, strengthening our capabilities to address the global opportunities as the alternative fund management market expands. As with the second half results in 2017, this investment will result in lower reported margins in the first half of 2018, although the timing of this investment and the resultant benefits are expected to drive an improved result in the second half and for the full year. The Group has also experienced an effective tax rate in the period that was lower than expected.
Given the good performance in the first half, together with the Group's pipeline of new business wins, the Board continues to expect that results for the full year will be in line with its expectations.
The Group will announce its interim results for the six months ended 30 June 2018 on Tuesday 11 September 2018.
Sanne Group plc
Dean Godwin, Chief Executive Officer
James Ireland, Chief Financial Officer
+44 (0) 1534 722 787
Investec Bank plc
Garry Levin / David Flin
Edward Thomas / Neil Coleman
+44 (0) 20 7597 5970
Tulchan Communications LLP
+44 (0) 20 7353 4200
SANNE is a leading global provider of alternative asset and corporate services. Established for over 30 years and listed as a FTSE 250 company on the Main Market of the London Stock Exchange, SANNE employs more than 1,200 people worldwide and administers structures and funds that have in excess of £200 billion of assets.
Key clients include alternative asset managers, financial institutions, family offices, UHNWIs and corporates.
SANNE operates from a global network of offices located in leading financial jurisdictions, which are spread across the Americas, Europe, Africa and Asia-Pacific.
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