Yesterday’s trading update from the provider of administration services to the alternative assets sector, indicated that full-year results would be in line with expectations, prompting Numis to nudge up its revenue forecast by 4%.
Shares up despite downgrade
Numis’s full-year assumption for organic revenue growth remains 12% but it expects the rate to be around 8-9% in the first half and the low-to-mid-teens in the second, partly because of last year’s comparatives.
“We hold our underlying operating profit assumption at £46mln, which continues to experience currency headwinds (c.50% of the business is US$-denominated). However, we expect c.£21.3m in H1 (implying a 46:54 H1:H2 split vs a 54:46 split in 2017, but consistent with the split in 2014-16). Accordingly, we expect reported 1H18 PBTA to be flat (£20.3m), and reported EPS to be modestly down, owing to a higher share count,” the broker said.
Shares in Sanne were up 2p at 678p.