Share

LN: SHRE

£43.8m market cap

30.5p last close

Share plc’s main subsidiary is The Share Centre, which is a self-select retail stockbroker that also offers share services for corporates and employees.

Investment summary

Share’s H119 revenue increased by 9% from H118 to £11.1m despite trading volumes down 18% in the period. Growth was provided by account fees and interest income reflecting account acquisitions and higher rates and average customer cash balances respectively. Cost growth was contained at 3% allowing an operating profit of £0.1m against a loss of £0.5m. Statutory pre-tax profit was £0.2m versus a loss of £0.3m, while normalised pre-tax profit was £0.5m compared with £0.1m. Adding back the effect of lower trading volumes and a change in the timing of the Euroclear dividend would have given a normalised profit of over £1m, underlining the turnaround in profitability that has been achieved.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 18.7 (0.4) 0.4 0.27 113.0 37.1
2018A 21.0 0.5 0.7 0.45 67.8 102.7
2019E 22.3 1.7 1.3 0.75 40.7 26.9
2020E 23.0 1.9 1.5 0.86 35.5 20.4
Last updated on 30/08/2019
Industry outlook

H219 will see some contribution from increases in Share’s fixed account admin fee and other charges. Longer term, and leaving aside thoughts of consolidation and market fluctuations, the full benefits of Share’s digital transformation and its acquisition strategy are set to become evident.

Last updated on 30/08/2019
Share price graph
Balance sheet
Forecast net cash (£m) 9.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.2) (11.6) 20.8
Relative* (1.1) (11.6) 26.6
52-week high/low 36.0p/22.8p
*% relative to local index
Key management
Gavin Oldham Chairman
Richard Stone CEO
Mike Birkett FD