Share

LN: SHRE

£35.9m market cap

25p 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

In Share’s H118 results assets under administration (AUA) were up 18% to £5bn and revenue was +15% compared with H117. The largest contributor to revenue growth was commission while interest income from client cash balances rose sharply from a depressed level. Costs were increased to address regulatory changes including particularly MiFID II. As a result, normalised post-tax profit was down from £0.255m to £0.05m but measures have been taken to mitigate the increase in costs giving a much more promising starting point for H218. FY18 results are due to be announced on 20 March.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2016A 14.6 (1.1) 0.0 0.0 N/A 70.8
2017A 18.7 (0.4) 0.4 0.27 92.6 30.4
2018E 20.5 0.5 0.8 0.44 56.8 316.4
2019E 21.6 0.9 1.1 0.63 39.7 24.7
Last updated on 15/03/2019
Industry outlook

While market volatility and uncertainty may affect near-term activity levels, on longer view the pressure for individuals to take greater responsibility for pension saving and asset allocation should help to create a favourable environment for the customer focused offering of the Share Centre. Growth could be accelerated significantly by acquisitions. Industry consolidation continued in 2018 with Alliance Trust agreeing in October to sell its ATS subsidiary to Interactive Investor for £40m implying a revenue multiple of 1.2x and value per account of £318 (Share equivalent figures 1.4x and £102).

Last updated on 15/03/2019
Share price graph
Balance sheet
Forecast net cash (£m) 9.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.0 1.0 (5.7)
Relative* (0.4) (5.0) (6.2)
52-week high/low 27.0p/22.8p
*% relative to local index
Key management
Gavin Oldham Chairman
Richard Stone CEO
Mike Birkett FD