28 July 2021

Sanne Group plc

(Sanne or the Group)

Acquisition and half year trading update

Sanne, the global provider of alternative asset and corporate services, today announces the accretive acquisition of the European fund administration business (the Funds Business) of PraxisIFM Group Ltd (PraxisIFM) for £54 million.

The Group also provides a trading update for the six months ended 30 June 2021 in line with the Board's expectations.

Acquisition of PraxisIFM's European fund administration business

The Funds Business is one of the leading players in the European listed funds administration sector, which has consistently delivered double digit revenue growth in recent years. This strategically important acquisition augments Sanne's existing presence in this significant sector, especially for the UK market whilst also deepening its rapidly expanding footprint in Guernsey, the preeminent domicile for European private equity funds.  The transaction adds over 80 employees and more than £25 billion of assets under administration to Sanne, with offices in Guernsey, Jersey, London, Luxembourg and Malta.  Sanne and the Funds Business have a close cultural alignment, sharing a strong focus on delivering high quality client service.

The total cash consideration of £54 million is payable upon completion and will be funded from the Group's existing resources.  The Funds Business is expected to deliver revenues of c. £13 million for the year ending 30 April 2022. Once integrated, with the removal of current PraxisIFM group recharges, we anticipate the business delivering profit margins in-line with Sanne's own. For the year ended 30 April 2020 the Funds Business had profits before tax, after application of group recharges, of £1.1 million and gross assets of £4.5 million.  The acquisition is expected to complete during Q4 2021, subject to regulatory approvals and is expected to be immediately earnings enhancing.

This is Sanne's third acquisition this year with the Group continuing to pursue a healthy pipeline of potential transactions.  The Group remains disciplined in its approach to acquisitions, focusing on executing transactions that are accretive to the Group's long-term strategic vision and value.

Trading Update

Sanne has delivered another resilient performance in the half-year to 30 June 2021 and continued to see stronger growth returning to its core markets despite the ongoing COVID-19 pandemic conditions.  As such, the Board remains confident in delivering full year results in line with its expectations.

This improved performance included a significant increase in new business activity, with first half 2021 annualised total new business wins up c.38% on the second half of 2020 to £15.7 million.

The first half has also seen a robust improvement in half-on-half constant currency organic growth from a flat performance in the second half of 2020.  On a constant currency basis, the Group expects to report underlying operating profit margins broadly flat on the first half of 2020 but anticipates further second half improvement as the growth in new business wins is reflected in the results.  Both the PEA and STRAIT acquisitions, which were completed in the first half, have performed well in the period.

The half year has also seen another strong cash performance with underlying operating cash conversion, once more ahead of the 90% guidance.

Notice of 2021 Interim Results

The Group expects to announce its interim results for the six-month period to 30 June 2021 on 14 September 2021.

Potential Offer from Cinven

Sanne remains in discussions with Cinven regarding a possible offer for the entire issued and to be issued share capital of Sanne.  The date by which Cinven is required either to announce a firm intention to make an offer for Sanne in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies remains not later than 5.00pm on 6 August 2021. This deadline can be extended by the Board of Sanne, with the consent of the Takeover Panel.

Enquiries:

Tulchan Communications LLP                                                             +44 (0) 20 7353 4200

Tom Murray

Harry Cameron

Sanne Group plc                                                                                  +44 (0) 20 3327 9720

Martin Schnaier, Chief Executive Officer

James Ireland, Chief Financial Officer

Notes

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 over 2,000 people worldwide and administers structures and funds that have in excess of £465 billion of assets.

Key clients include leading alternative asset managers, global financial institutions, family offices 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.

This announcement may contain forward-looking statements. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook" or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of the Company. As a result, the actual future financial condition, performance and results of the Company may differ materially from the plans, goals and expectations set forth in any forward-looking statements. Any forward-looking statements made in this announcement speak only as of the date they are made and the Company does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, except to the extent legally required.

sannegroup.com

LEI Code: 2138005UBLKEZRITH576