LONDON (Alliance News) - Sanne Group PLC on Thursday said that momentum has been strong in its first few months as a listed company, as the company reported that it swung to pretax loss in the first half of 2015, with higher revenue more than offset by the costs of its initial public offering and other exceptional charges.
Sanne, which provides outsourced corporate and fund administration, raised GBP141.6 million when it listed on the Main Market of the London Stock Exchange on April 1. Its clients include alternative asset managers, financial institutions and corporates.
The company said it made a GBP5.0 million pretax loss in the six months to the end of June, compared with a pretax profit of GBP4.0 million in the corresponding half the prior year. Adjusted operating profit before tax, which excludes exceptional costs, increased to GBP6.2 million in the half, compared with GBP4.1 million in the corresponding half the prior year. Sanne said it is paying an interim dividend of 1.4 pence.
"There has been strong momentum in the business since the IPO and trading has been in line with the board's expectations. With a healthy pipeline of new business and with the full revenue impact of a number of recent client wins still to be realised in [the second half], the board remains confident on the outlook for the remainder of the year," Chief Executive Dean Godwin said in a statement.
A 26% increase in revenue, which amounted to GBP21.1 million in the half, was more than offset by the GBP7.0 million bill for its IPO, share based payments made as part of a restructuring ahead of going public that cost GBP1.8 million, and GBP2.3 million related to loan restructuring.
The restructuring at the time of the IPO saw the company settle its secured bank loan with Intermediate Capital Group, amounting to GBP45 million over seven years.
The GBP2.3 million in issue costs associated with the loan have been written off, having previously been capitalised for amortisation over the seven year term.
Sanne Group said it is funding the repayment through a replacement loan deal with HSBC PLC for GBP40 million. It has drawn down GBP18 million of that amount, with an additional GBP7 million undrawn and available on a revolving credit facility. The remaining GBP15 million is in the form of an undrawn accordion facility.
"Covenants attached to the loan monitor interest cover and leverage, with leverage defining the interest payable at a margin above LIBOR. GBP0.3 million of loan costs have been capitalised and are being amortised over the five year term," Sanne said.
Sanne shares were down 1.1% shortly after the open on Thursday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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