Sureserve Group


£86.1m market cap

54.5p last close

Sureserve Group is engaged in the provision of Compliance and Energy Services through two divisions, focused on customers in the outsourced public and regulated services sectors in the UK. It is the market leader in social housing gas compliance.

Investment summary

October’s trading update confirmed the work management has undertaken to transform Sureserve into a smaller, more predictable business has paid off. The performance through the challenges of COVID-19 has demonstrated the resilience of the business. We trimmed our 2020 revenue estimate from £210m to £201m, but the improving margins result in PBT being nudged up from £9.1m to £9.3m. The gradual re-rating of the shares this year suggests investors are starting to buy in to the turnaround and the improving market position.

Y/E Sep
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 190.8 9.2 6.6 3.4 15.9 N/A
2019A 212.1 10.5 8.3 4.5 12.0 15.5
2020E 200.7 15.2 9.3 4.7 11.5 3.6
2021E 219.8 15.2 10.0 5.1 10.6 15.1
Industry outlook

Growing corporate and government awareness around safety and energy efficiency creates an attractive backdrop to Sureserve’s compliance and energy services business, where strong regulatory drivers have the potential to deliver substantial medium-term EBITA growth. The management team appointed in July 2016 to reverse the decline in performance is taking bold decisions.

Last updated on 24/11/2020
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Share price graph
Balance sheet
Forecast net cash (£m) 9.4
Forecast gearing ratio (%) N/A
Price performance
Actual 6.9 20.0 86.2
Relative* (1.0) 14.1 110.5
52-week high/low 54.0p/29.0p
*% relative to local index
Key management
Peter Smith CFO
Robert Holt Executive Chairman