Sanne Group – Robust Full Year Results

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Sanne Group – Robust Full Year Results
  • Underlying revenue growth of almost 8% to £170m
  • Profits up 16% to £45m
  • Dividend raised to 9.9p, taking the full year pay-out to 14.7p, an increase of 4%.

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Q4 2020 hedge fund letters, conferences and more

Sanne Group's Annual Results

Sanne Group PLC (LON:SNN), a leading global funds administration group released its annual results this morning. Despite the impacts of the coronavirus pandemic, Sanne Group saw underlying revenue growth of almost 8% to £170m, with profits rising 16% to £45m. The final dividend was raised to 9.9p, taking the full year pay-out to 14.7p an increase of 4%. The numbers were a shade light of market earnings expectations, but the dividend was raised by more than analysts had expected. The market focused on a confident outlook statement from the group and pushed the shares slightly ahead in early trading.

Commenting on the results, Steve Clayton, manager of the HL Select funds said:

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“Sanne is one of those elite businesses that made it through the pandemic without seeking government assistance, whilst growing revenues, profits and dividends at the same time. That’s a reflection of the durability of their business model. When clients hire Sanne to administer their funds, Sanne tend to stay in situ for the life of the fund, so revenues are highly recurring. Clients did slow down their fundraising efforts through the height of the crisis, but new business levels are now on the mend. Margins are rising too, up 100bp to 28.3% for the full year and backed by robust cash generation. Sanne keep growing their international footprint, with acquisitions in Ireland, Cayman and Tokyo, further diversifying the revenue base.

We hold Sanne in our HL Select UK funds because the group offers a rare combination of growth and strongly recurring revenues. The alternative funds industry that the group serves is a growth industry and offers plenty of scope for Sanne to continue consolidating smaller administration groups, driving revenues and earnings ahead of already attractive organic growth rates. Dividend growth ahead of inflation is a testament to managements confidence in the future”.


About Hargreaves Lansdown

1.5 million investors trust us with £120.6 billion (as at 31 December 2020), making us the UK’s largest direct-to-investor service.

For more information: www.hl.co.uk/about-us

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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