28 November 2019 – interim results

Interim results have been announced.  Total revenue for the six months ended 30 September 2019 was £56.3m (2018: £52.2m).  Pensions Administration revenue was up 19%, Pensions Investments up 11%, NPT up 56% but Pensions Actuarial and Consulting and SASS/SIPP revenues were flat.  Adjusted EBITDA was £13.3m (2018: £12.0m) due to higher revenue as well as the adoption of IFRS 16 – Leases.  Lease expenses which were previously included in administrative expenses are now included in depreciation and finance costs and therefore excluded from EBITDA.  Adjusted fully diluted earnings per share were 4.1p (2018: 4.2p).  The figure for 2019 includes the impact of adoption of IFRS 16 – Leases.  Cash of £2.6m was generated from operating activities.  As at 30 September 2019 net debt was £65.7m (2018: £48.0m).  The interim dividend was held at 2.3p per share.  We believe that this is a very interesting niche business.  BUY.