Sureserve Group

LN: SUR

Market Cap£133.6m

Last Close 83p

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.

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Investment summary

Sureserve subsidiaries were well represented in the £800m Energy Efficiency and Associated Works framework announced in early November. The framework allows local authorities, social landlords and other public bodies to access specialist suppliers to install solutions that cut carbon in homes and public buildings. The framework is worth up to £500m in England, £200m in Scotland and £100m in Wales. We are aware that Sureserve has invested in its bid team and are encouraged by this framework win, adding to our hypothesis that Sureserve is well positioned to grow market share organically.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 190.8 9.2 6.6 3.4 24.4 N/A
2019A 212.1 10.5 8.3 4.5 18.4 23.8
2020E 200.7 15.2 9.3 4.7 17.7 5.5
2021E 219.8 15.2 10.0 5.1 16.3 23.2
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 17/06/2021
Content on Sureserve Group
Sureserve Group – Improving market position
Industrials | Update | 7 October 2020
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Share price graph
Balance sheet
Forecast net cash (£m) 9.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.2 13.7 88.6
Relative* (0.5) 7.6 60.5
52-week high/low 85.5p/42.0p
*% relative to local index
Key management
Peter Smith CFO
Robert Holt Executive Chairman