Share

LN: SHRE

£43.5m market cap

30.25p 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

Share announced H119 results in August with a revenue increase of 9% from H118 to £11.1m despite trading volumes being 18% lower 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 vs a loss of £0.5m in H118. Statutory pre-tax profit was £0.2m vs a loss of £0.3m, while normalised pre-tax profit was £0.5m vs £0.1m. In October, the successful transfer of over 13,000 accounts acquired from J.P. Morgan was reported, extending the group’s track record of book acquisitions and partnerships with major institutions.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 18.7 (0.4) 0.4 0.27 112.0 36.8
2018A 21.0 0.5 0.7 0.45 67.2 101.9
2019E 22.3 1.4 1.3 0.75 40.3 22.0
2020E 23.0 1.8 1.5 0.86 35.2 18.4
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 15/10/2019
Share price graph
Balance sheet
Forecast net cash (£m) 9.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.8) (7.6) 19.8
Relative* 1.2 (4.8) 16.1
52-week high/low 36.0p/22.8p
*% relative to local index
Key management
Gavin Oldham Chairman
Richard Stone CEO
Mike Birkett FD

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