As a validation of its maturing business model and strengthened corporate governance, Jackpotjoy plc (JPJ) has announced a proposed transfer of its entire share capital from a Standard to a Premium Listing on the Official List of the FCA. The transfer is expected to take effect on 26 July 2018 and the company hopes to be included in the FTSE UK Index at the next quarterly review. Concurrently, the company’s name will be changed to JPJ Group.
Following its London listing in January 2017, JPJ has proposed to move its entire share capital from a Standard to a Premium Listing. The transfer is anticipated to occur on 26 July 2018 and the company will also change its name to JPJ Group.
We believe this validates the company’s strengthened corporate governance and the move should provide exposure to a greater investor base. JPJ anticipates that its shares will be considered for inclusion in the FTSE UK Index series at the next quarterly review.
As we detailed in our May Update note, JPJ continues to trade at a meaningful discount to peers, at just 6.9x 2019e P/E, which appears undeserved given its consistent momentum and positive trading reports over the past 18 months. The final major earn-out payment was recently paid (18 June) and the company is now in a position to rapidly drive down debt, with yearly operating cash flow of c £100m.