Share

LN: SHRE

£48.1m market cap

33.5p 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 Q119 trading update in May signalled a resilient performance against the background of subdued London Stock Exchange trading (number and value of trades -27% and -24% respectively y-o-y). Share revenues were up 2% y-o-y while peers were down 3%. Market share vs peers increased from 3.54% to 3.70%: q-o-q this was down modestly from 3.90%. Following on from a profitable H218, Q119 also saw an operating profit as benefits of the spending on IT and acquisitions came through, as we have assumed in our estimate for the full year. On 3 May, Share announced that it had had a preliminary approach from Interactive Investor (II) and early-stage discussions took place. However, on 9 May a further announcement indicated that II would not make an offer for its own reasons (we note that it is still in the process of dealing with the Alliance Trust Savings acquisition), although discussion could be resumed with Share board approval.

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 0.27 124.1 40.7
2018A 21.0 0.5 0.7 0.45 74.4 112.9
2019E 22.3 1.7 1.3 0.75 44.7 29.6
2020E 23.0 1.9 1.5 0.86 39.0 22.4
Last updated on 17/06/2019
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 17/06/2019
Share price graph
Balance sheet
Forecast net cash (£m) 9.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 8.1 34.0 24.1
Relative* 8.3 32.4 30.0
52-week high/low 36.0p/22.8p
*% relative to local index
Key management
Gavin Oldham Chairman
Richard Stone CEO
Mike Birkett FD