29 January 2020
Sanne Group plc
(SANNE or the Group)
Trading update, acquisition and notice of results
SANNE, the global provider of alternative asset and corporate services, today provides a pre-close update following the end of the Group's financial year to 31 December 2019.
SANNE continues to benefit from structural growth in demand for services to alternative asset managers. The Board expects to report full year revenue growth of c.16%, which was principally driven by strong double digit growth rates in the EMEA, Asia Pacific and Mauritius, and North America segments. The Channel Islands book delivered a broadly flat result following the previously announced headwinds in the Private Client and Corporate businesses. The Group continues to see good new business win activity, with full year annualised new business wins expected to be c.£24.5m for 2019 (2018: £24.5m) and good momentum continuing into 2020 with some significant wins falling into the New Year.
Good progress has been made in the second half in addressing the issues highlighted in the Group's July trading update with the second half underlying operating profit margin showing a significant improvement on the first half. As a result, whilst continuing to invest in growth initiatives, the Group expects to report a full year underlying operating profit margin in line with expectations.
SANNE has also continued to see strong cash conversion through the second half, with underlying operating cash conversion for the full year expected to be in excess of 100%.
The Board expects to report underlying earnings per share for the year to 31 December 2019 in line with its revised expectations, following the July 2019 trading update, and remains confident in the future prospects for the Group.
Acquisition and strategic review
SANNE is pleased to announce that it has entered into an agreement to acquire Inbhear Fund Service Limited and Inbhear Management Services Limited (together "Inbhear") for an upfront consideration of €6.6m and an earn-out over the next three years capped at €7.8m. Inbhear is a fund administration platform that establishes a physical presence in Cayman for the Group, as well as enhancing our existing Dublin capabilities and client base. The acquisition is expected to complete on 1 March 2020 following regulatory clearance. The transaction is expected to be earnings neutral in 2020 due to the increased investment in the Cayman business and earnings enhancing from 2021 onwards.
The strategic review of the Group's Jersey-based Private Client business remains ongoing and is now at an advanced stage.
Notice of 2019 Results
The Group will announce its full year results for the year to 31 December 2019 on Thursday 19 March 2020.
Sanne Group plc
Martin Schnaier, Chief Executive Officer
James Ireland, Chief Financial Officer
+44 (0) 1534 722 787
Tulchan Communications LLP
+44 (0) 20 7353 4200
SANNE is a leading global provider of outsourced alternative asset and corporate business 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 1,800 people worldwide and administers structures and funds that have in excess of £250 billion of assets.
Key clients include leading alternative asset managers, global financial institutions, family offices, UHNWIs and international 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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