Sureserve Group


£46.9m market cap

29.5p last close

Sureserve Group (previously Lakehouse) is engaged in asset and energy support services, focused on customers in the outsourced public and regulated services sectors in the UK. The group comprises two divisions: compliance and energy services.

Investment summary

Sureserve’s trading update in October confirmed that business is in line with management’s expectations for the year to end September. Net debt at 30 September was £7.6m, £4.0m of the revolving credit facility having been repaid and around £10.0m currently being used for trading; net debt was £12.9m at end March 2019 and £14.2m a year earlier. Chief Operating Officer Michael McMahon has decided to resign for personal reasons and Bob Holt will fulfil the role while the structure of the board is reviewed. Post the year end, the group received £0.93m from the buyer of Orchard Energy Services, a non-core energy consulting operation sold in late 2017, as final settlement of the deal consideration.

Y/E Sep
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 181.5 9.0 5.4 2.8 10.5 N/A
2018A 190.8 9.2 6.6 3.4 8.7 N/A
2019E 205.2 11.6 7.7 4.0 7.4 N/A
2020E 215.6 10.9 8.3 4.3 6.9 N/A
Industry outlook

Growing corporate and government awareness around safety and energy efficiency create 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 11/11/2019
Share price graph
Balance sheet
Forecast net debt (£m) 7.4
Forecast gearing ratio (%) 16
Price performance
Actual 5.4 1.7 (13.2)
Relative* 4.0 (0.2) (16.3)
52-week high/low 34.0p/20.0p
*% relative to local index
Key management
Robert Holt Executive Chairman