Severfield — Good, balanced UK trading, India orders growing

Severfield (LSE: SFR)

Last close As at 19/07/2024

GBP0.82

−1.00 (−1.20%)

Market capitalisation

GBP252m

More on this equity

Research: Industrials

Severfield — Good, balanced UK trading, India orders growing

Severfield’s (SFR’s) AGM statement retained management’s existing guidance for FY19. The year has started well in the UK – a more even profit profile is anticipated overall – and confidence in the Indian JV’s outlook is supporting plans for further investment. Overall, it is a very solid update with a consistent message to investors. The recent ex-dividend share price move has increased the attraction of earnings-based valuation multiples.

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Industrials

Severfield

Good, balanced UK trading, India orders growing

AGM update

Construction & materials

5 September 2018

Price

76.0p

Market cap

£231m

Net cash (£m) at end March 2018

33

Shares in issue

303.9m

Free float

100%

Code

SFR

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(7.9)

(3.8)

13.9

Rel (local)

(5.8)

(0.4)

12.4

52-week high/low

88.2p

59.8p

Business description

Severfield is a leading UK structural steelwork fabricator operating across a broad range of market sectors. An Indian facility currently undertakes structural steelwork projects for the local market and is fully operational.

Next events

H119 results

27 November 2018

Analyst

Toby Thorrington

+44 (0)20 3077 5721

Severfield is a research client of Edison Investment Research Limited

Severfield’s (SFR’s) AGM statement retained management’s existing guidance for FY19. The year has started well in the UK – a more even profit profile is anticipated overall – and confidence in the Indian JV’s outlook is supporting plans for further investment. Overall, it is a very solid update with a consistent message to investors. The recent ex-dividend share price move has increased the attraction of earnings-based valuation multiples.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS**
(p)

P/E
(x)

Yield**
(%)

03/17

262.2

20.3

5.7

2.3

13.3

3.0

03/18**

274.2

24.0

6.5

4.3

11.7

5.7

03/19e

279.2

25.0

6.8

2.8

11.1

3.7

03/20e

285.9

27.3

7.4

3.0

10.3

4.0

Note: *PBT and EPS are normalised, excluding pension net finance costs, intangible amortisation and exceptional items. **FY18 DPS includes a 1.7p special dividend.

Balanced UK performance

Favourable project completion timings resulted in a first half profit weighting last year. In FY19, management expects a more even H1/H2 operating profit split and, based on our existing estimates, this suggests a broadly similar profit outturn in H119. While the UK order book has reduced (to £210m) this largely appears to be a mix effect. Some larger contracts have substantially worked through, resulting in a rebalancing towards smaller project works that cycle through the order book more quickly and, hence, shorten the orders-on-hand position. Taking a wider view, pipeline stability and strength is again referenced, suggesting there have been no material outlook changes in individual sectors addressed since the FY18 results.

India investment approved

The Indian JV order book reached a record level at the end of FY18 and the latest reading of £128m represents a further £22m uplift. This reflects a cycling through of existing work on hand and a contract award on one of the significant commercial projects flagged in the year-end pipeline, improving the overall mix. In the light of this and other commercial prospects, the JV partners are to increase fabrication capacity at Bellary. This c £16m expansion (a 50% increase to c 90,000 tonnes) will be funded 50:50 debt:equity, requiring SFR to inject £4m cash, in line with previous illustrations that also suggested a 12-month project phase. Associated timings are to be firmed up and we will update our model when H119 results are announced in November; we anticipate some cash outflow this year and a P&L impact in FY21.

Valuation: Confident trading messaging

The favourable reaction to FY18 results in June was largely sustained in share price terms before SFR went ex-dividend (1.7p FY18 final plus a 1.7p special) in mid-August. At current levels, an 11.1x FY19 P/E and EV/EBITDA of 6.3x suggest a neutral market stance on prospects with evidence of trading confidence balancing out more bearish UK construction sector views. We believe the former should carry more weight; in our view, SFR’s recent record of successfully winning work across a range of subsectors and delivering improving margins looks set to continue.

Exhibit 1: Financial summary

£m

2011

2012

2013

2014

2015

2016

2017

2018

2019e

2020e

2021e

Year end 31 March

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

12m to Dec

12m to Dec

15m to Mar

12m to Mar

12m to Mar

12m to Mar

12m to Mar

12m to Mar

12m to Mar

12m to Mar

12m to Mar

PROFIT & LOSS

Revenue

 

 

267.8

256.6

318.3

231.3

201.5

239.4

262.2

274.2

279.2

285.9

292.5

Cost of Sales

(246.9)

(268.8)

(330.9)

(217.8)

(186.7)

(219.6)

(236.3)

(244.9)

(249.0)

(253.2)

(258.9)

Gross Profit

20.9

(12.2)

(12.7)

13.5

14.9

19.8

25.9

29.3

30.3

32.7

33.6

EBITDA

 

 

19.5

(13.6)

(13.6)

12.0

13.6

18.9

25.7

29.0

30.2

32.9

34.1

Operating Profit - Edison

 

 

15.0

(17.7)

(18.6)

8.4

10.0

15.2

22.1

25.4

26.1

28.3

29.0

Net Interest

(1.6)

(1.6)

(2.0)

(0.6)

(0.5)

(0.2)

(0.2)

(0.2)

(0.2)

(0.2)

(0.1)

Associates

(2.5)

0.2

(0.3)

(3.0)

(0.2)

(0.2)

0.5

0.9

1.1

1.2

1.3

SBP

(0.3)

(0.0)

(0.1)

(0.2)

(0.5)

(1.1)

(2.0)

(2.0)

(2.0)

(2.0)

(2.0)

Intangible Amortisation

(2.7)

(2.7)

(3.5)

(2.7)

(2.6)

(2.6)

(2.6)

(1.3)

0.0

0.0

0.0

Pension Net Finance Costs

(0.5)

(0.5)

(0.6)

(0.5)

(0.5)

(0.5)

(0.5)

(0.5)

(0.5)

(0.5)

(0.5)

Exceptionals

(0.6)

(1.0)

(3.8)

(5.3)

(5.9)

(0.9)

0.8

0.0

0.0

0.0

0.0

Profit Before Tax (norm) - Edison

 

10.6

(19.1)

(20.9)

4.5

8.8

13.7

20.3

24.0

25.0

27.3

28.1

Profit Before Tax (norm)

 

 

10.1

(19.6)

(21.5)

4.0

8.3

13.2

19.8

23.5

24.5

26.8

27.6

Profit Before Tax (FRS 3)

 

 

6.8

(23.3)

(28.9)

(4.1)

(0.2)

9.6

18.1

22.2

24.5

26.8

27.6

Tax

(0.9)

3.9

5.7

1.4

0.3

(1.0)

(2.7)

(4.1)

(4.4)

(4.8)

(5.0)

Profit After Tax (norm)

7.7

(16.2)

(17.9)

3.1

7.4

11.4

17.0

19.5

20.6

22.5

23.2

Profit After Tax (FRS 3)

5.8

(19.4)

(23.1)

(2.6)

0.1

8.6

15.3

18.0

20.1

22.0

22.7

Average Number of Shares Outstanding (m)

89.3

89.3

89.3

295.8

297.5

297.5

298.9

299.7

301.7

303.5

303.5

EPS - normalised (p) - Edison

 

 

4.51

(9.42)

(10.42)

1.05

2.47

3.84

5.70

6.52

6.82

7.40

7.64

EPS - normalised (p)

 

 

4.21

(9.72)

(9.45)

0.88

2.31

3.67

5.53

6.35

6.66

7.24

7.47

EPS - FRS 3 (p)

 

 

3.41

(11.33)

(13.49)

(0.89)

0.05

2.89

5.13

6.02

6.66

7.24

7.47

Dividend per share (p)

5.0

1.5

0.8

0.0

0.5

1.5

2.3

4.3

2.8

3.0

3.3

Gross Margin (%)

7.8

-4.8

-4.0

5.8

7.4

8.3

9.9

10.7

10.8

11.4

11.5

EBITDA Margin (%)

7.3

-5.3

-4.3

5.2

6.7

7.9

9.8

10.6

10.8

11.5

11.7

Operating Margin - Edison (%)

5.6

-6.9

-5.8

3.6

4.9

6.4

8.4

9.2

9.3

9.9

9.9

BALANCE SHEET

Fixed Assets

 

 

156.9

155.6

154.9

147.7

145.1

149.3

148.3

154.5

159.0

163.0

166.6

Intangible Assets

72.9

70.4

69.8

64.6

61.8

59.2

56.3

54.8

54.8

54.8

54.8

Tangible Assets

79.6

76.2

76.1

74.1

76.6

77.4

78.9

81.2

84.1

86.4

88.3

Investments

4.4

8.9

8.9

9.0

6.7

12.7

13.1

18.5

20.1

21.7

23.5

Current Assets

 

 

100.5

69.8

80.5

72.2

76.3

75.1

107.1

99.2

104.2

116.6

129.4

Stocks

9.1

7.1

8.2

5.8

4.8

5.3

7.8

9.6

10.8

11.0

11.2

Debtors

89.2

61.2

71.6

60.8

64.6

50.7

66.5

56.4

58.1

60.0

62.0

Cash

2.3

1.4

0.7

5.5

6.9

19.0

32.8

33.1

35.3

45.6

56.2

Current Liabilities

 

 

(103.6)

(97.0)

(112.5)

(57.9)

(59.7)

(58.2)

(78.7)

(66.1)

(66.7)

(67.9)

(69.1)

Creditors

(70.3)

(66.1)

(70.9)

(52.7)

(59.5)

(58.1)

(78.5)

(65.9)

(66.5)

(67.7)

(68.9)

Short term borrowings

(33.3)

(30.9)

(41.7)

(5.2)

(0.2)

(0.2)

(0.2)

(0.2)

(0.2)

(0.2)

(0.2)

Long Term Liabilities

 

 

(21.6)

(21.7)

(20.4)

(18.5)

(21.1)

(17.9)

(22.5)

(18.7)

(18.7)

(18.7)

(18.7)

Long term borrowings

(0.3)

(0.3)

(0.2)

(0.0)

(0.6)

(0.4)

(0.2)

(0.0)

(0.0)

(0.0)

(0.0)

Other long term liabilities

(21.3)

(21.4)

(20.2)

(18.5)

(20.5)

(17.5)

(22.3)

(18.6)

(18.6)

(18.6)

(18.6)

Net Assets

 

 

132.3

106.6

102.4

143.4

140.6

148.2

154.2

169.0

177.8

193.0

208.3

CASH FLOW

Operating Cash Flow

 

 

(5.4)

12.9

3.1

2.1

11.4

24.8

27.4

22.9

27.7

31.1

32.4

Net Interest

(2.0)

(1.3)

(1.7)

(0.8)

(0.8)

(0.2)

(0.1)

(0.2)

(0.1)

(0.1)

(0.1)

Tax

(3.7)

(2.7)

(2.3)

0.4

(1.0)

(0.9)

(2.4)

(3.9)

(4.6)

(4.4)

(4.8)

Capex

(1.5)

(0.2)

(1.4)

(1.5)

(1.3)

(4.3)

(5.3)

(5.4)

(7.0)

(7.0)

(7.0)

Acquisitions/disposals

(0)

(2)

(3.0)

(3.5)

(1.7)

(4.1)

(0.4)

(5.5)

(0.5)

(0.5)

(0.5)

Financing

0

0

0.0

44.8

0

0

0

0

0

0

0

Dividends

(3.6)

(4.5)

(4.5)

0.0

0.0

(3.0)

(5.1)

(7.5)

(13.3)

(8.7)

(9.4)

Net Cash Flow

(16.3)

1.7

(9.7)

41.5

6.7

12.4

14.0

0.4

2.1

10.3

10.6

Opening net debt/(cash)

 

 

15.0

31.3

31.3

41.2

(0.3)

(6.1)

(18.4)

(32.4)

(32.9)

(35.0)

(45.4)

HP finance leases initiated

0.0

0.1

0.0

(0.2)

(0.3)

(0.2)

(0.2)

(0.2)

0.0

0.0

0.0

Other

(0)

(0)

(0)

0.2

(0.6)

0.2

0

0

0

0

0

Closing net debt/(cash)

 

 

31.3

29.7

41.2

(0.3)

(6.1)

(18.4)

(32.4)

(32.9)

(35.0)

(45.4)

(56.0)

Source: Company data, Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Severfield and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Severfield and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

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Atlantis Japan Growth Fund — Continuing to find attractive growth opportunities

Atlantis Japan Growth Fund (AJG) is advised by Atlantis Investment Research Corporation (AIRC). Lead portfolio adviser Taeko Setaishi aims to generate long-term capital growth from a portfolio of primarily smaller-capitalisation Japanese equities. AIRC’s philosophy is that over the long term, a company’s share price performance is driven by its earnings growth, especially for smaller companies. Setaishi notes that Japanese equities have experienced negative investor fund flows in 2018, which has had a large impact on the Japanese stock market. However, while overall economic growth in the country remains modest, the adviser is continuing to find companies with attractive fundamentals that are trading on reasonable valuations, particularly in small and mid-caps. While recent performance has been more challenging, AJG has outperformed its benchmark TOPIX index over the last one, three, five and 10 years.

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