Interim results demonstrate the virtues of consistent fee-based income, as well as continued implementation of the target operating model. Headline growth in scheme numbers is flat, but there was solid growth in the key Mid SIPP product. The financial performance underpins full year expectations (H1’19 EBITDA 49% of FY19e) which we leave unchanged. At 15x cal’20 PER, we do not believe that the valuation is challenging for a business with strong recurring and uncorrelated income.
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Strong earnings quality, undemanding valuation
- Published:
05 Sep 2019 -
Author:
Andrew Watson -
Pages:
3
Interim results demonstrate the virtues of consistent fee-based income, as well as continued implementation of the target operating model. Headline growth in scheme numbers is flat, but there was solid growth in the key Mid SIPP product. The financial performance underpins full year expectations (H1’19 EBITDA 49% of FY19e) which we leave unchanged. At 15x cal’20 PER, we do not believe that the valuation is challenging for a business with strong recurring and uncorrelated income.