£77.3m market cap
48.5p 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
Yesterday’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 had 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) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 190.8 | 9.2 | 6.6 | 3.4 | 14.3 | N/A |
| 2019A | 212.1 | 10.5 | 8.3 | 4.5 | 10.8 | 13.9 |
| 2020E | 200.7 | 15.2 | 9.3 | 4.7 | 10.3 | 3.2 |
| 2021E | 219.8 | 15.2 | 10.0 | 5.1 | 9.5 | 13.6 |
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 21/10/2020
Sector |
|---|
| Industrials |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net cash (£m) | 9.4 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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| *% relative to local index | |||||||||||||||
Key management |
|
|---|---|
| Peter Smith | CFO |
| Robert Holt | Executive Chairman |
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