27 November 2019 – trading update

The cross border financial services provider has provided an update on trading, with 2019 revenue expected to be approximately £23.0m.  Reported profit before tax is expected to be approximately £3.8m, with underlying profit before tax of approximately £2.5m.  The outlook for 2020 will also be impacted by slower new product revenue and the additional ongoing costs.  New business levels at Carey, which was acquired in February, have been hit by rebranding taking longer than expected and the application of the Carey Master Trust to The Pensions Regulator being more complicated than anticipated.  This is a significant blow but given the current valuation of the company there must be scope for recovery.  We now rate the shares as a SPECULATIVE BUY.