(Alliance News) - Sanne Group PLC on Tuesday reported a first-half profit decline, though revenue rose, and it remains confident of seeing further organic growth in the second half of 2021.
Pretax profit fell 19% to GBP9.4 million in the six months to June 30 from GBP11.6 million a year earlier. Revenue grew 8.1% to GBP90.7 million from GBP83.9 million.
The London-based specialist alternative asset fund manager said structural changes in the last two years impacted profitability.
In the first-half, it reported a foreign exchange loss on acquisition restructuring of GBP610,000, compared to GBP237,000 for full-year 2020.
Market recovery and growth-focused investment during the pandemic caused "a very strong half year for new business wins", said Chief Executive Martin Schnaier. Sanne's new business wins totalled GBP15.7 million in the period, representing a 41% year-on-year increase.
The fund manager didn't propose an interim dividend due to the terms of its pending takeover by Apex Group Ltd, adding that it doesn't expect to pay a final dividend either. Sanne paid an interim dividend of 4.8 pence and final dividend of 9.9 pence in 2020.
Sanne is optimistic for the second-half and said it is confident it will continue delivering organic growth. Constant currency organic net revenue growth for the recent six months was 4.0% compared with the same period last year.
"The strong market recovery that we have seen during the first half of the year, demonstrating the high demand for private asset alternatives, is expected to continue during the second half of 2021," said Schnaier.
"This positive momentum means that the group is well-placed to deliver continued improvement to our organic growth rate for the year."
Sanne shares were down 0.3% at 907.00 pence in London on Tuesday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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