Earnings move higher at Sanne as it integrates recent acquisitions

Alternative asset and corporate administration services provider Sanne Group announced its results for the year ended 31 December on Thursday, with group revenue increasing 77% to £113.2m.

The FTSE 250 company said its underlying operating profit was up 76% year-on-year to £38.8m, while its underlying profit before tax improved 79% to £38.1m.

Operating profit increased 57% to £23.1m, and profit before tax was ahead 49% at £22.4m.

Sanne said its diluted earnings per share stood at at 12.7p at year-end, compared to 11.3p at the end of 2016, while its underlying diluted earnings per share were 23.7p, rising from 16.9p.

Its board recommended a final dividend per share of 8.4p, bringing the total dividend for the year to 12.6p, up from the 9.6p distributed for 2016.

On the operational front, Sanne said it had a “strong pipeline” of new business within its core alternatives business of debt, real estate, private equity and hedging, as well as its corporate and treasury business lines.

It said its projected annualised value of revenues for new business won in the year reached around £20.9m, compared to £13.8m in the previous year.

Acquisitions were completed in Mauritius during 2017 and Luxembourg post year-end, which the board said broadened its capabilities and geographic footprint with the integration of the Mauritian business.

“Sanne has had a successful year and highlights include the acquisition of our new Mauritian business, International Financial Services and IFS Trustees,” said Sanne chief executive Dean Godwin.

“After the year-end we also finalised the acquisition of Luxembourg Investment Solutions and Compliance Partners on 6 February.”

Godwin noted the businesses had expanded the company’s expertise and jurisdictional coverage.

“Strategic recruitment of talent and increased jurisdictional presence have helped us to deliver high quality professional services.”