New Risk • Jul 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (3.0% increase in shares outstanding). Reported Earnings • May 16
First half 2023 earnings released: EPS: UK£0.032 (vs UK£0.022 in 1H 2022) First half 2023 results: EPS: UK£0.032 (up from UK£0.022 in 1H 2022). Revenue: UK£155.3m (up 23% from 1H 2022). Net income: UK£5.20m (up 47% from 1H 2022). Profit margin: 3.3% (up from 2.8% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Commercial Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improves as stock rises 42% After last week's 42% share price gain to UK£1.23, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 21x in the Commercial Services industry in the United Kingdom. Total returns to shareholders of 243% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.70 per share. Reported Earnings • Jan 24
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: UK£0.08 (up from UK£0.071 in FY 2021). Revenue: UK£275.1m (up 13% from FY 2021). Net income: UK£13.1m (up 15% from FY 2021). Profit margin: 4.8% (up from 4.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.5%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Commercial Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Chairman Nick Winks was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 18
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down UK£3.54m from profit in 1H 2021). Profit margin: (down from 3.1% in 1H 2021). The decrease in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 8.5%, compared to a 19% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 44% per year whereas the company’s share price has increased by 46% per year. Board Change • May 12
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Chairman Nick Winks was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 27
Price target increased to UK£1.21 Up from UK£1.12, the current price target is an average from 3 analysts. New target price is 42% above last closing price of UK£0.85. Stock is up 7.6% over the past year. The company posted earnings per share of UK£0.071 last year. Price Target Changed • Apr 20
Price target increased to UK£1.21 Up from UK£1.07, the current price target is an average from 3 analysts. New target price is 47% above last closing price of UK£0.82. Stock is up 2.5% over the past year. The company posted earnings per share of UK£0.071 last year. Reported Earnings • Jan 26
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: UK£0.071 (up from UK£0.04 in FY 2020). Revenue: UK£244.0m (up 25% from FY 2020). Net income: UK£11.4m (up 80% from FY 2020). Profit margin: 4.7% (up from 3.2% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.5%. Over the next year, revenue is forecast to grow 14%, compared to a 8.8% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 54% per year whereas the company’s share price has increased by 51% per year. Recent Insider Transactions • Jul 30
Independent Non-Executive Chairman recently bought UK£82k worth of stock On the 28th of July, Nicholas Paul Winks bought around 100k shares on-market at roughly UK£0.82 per share. This was the largest purchase by an insider in the last 3 months. This was Nicholas Paul's only on-market trade for the last 12 months. Reported Earnings • May 22
First half 2021 earnings released: EPS UK£0.022 (vs UK£0.013 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: UK£114.6m (up 4.6% from 1H 2020). Net income: UK£3.54m (up 72% from 1H 2020). Profit margin: 3.1% (up from 1.9% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Apr 16
CFO, Interim COO & Executive Director recently bought UK£79k worth of stock On the 15th of April, Peter David Smith bought around 96k shares on-market at roughly UK£0.82 per share. This was the largest purchase by an insider in the last 3 months. This was Peter David's only on-market trade for the last 12 months. Executive Departure • Mar 19
Chief Executive & Executive Chairman Robert Holt has left the company On the 18th of March, Robert Holt's tenure as Chief Executive & Executive Chairman ended after 1.5 years in the role. As of December 2020, Robert personally held 1.30m shares (UK£831k worth at the time). Robert is the only executive to leave the company over the last 12 months. Announcement • Mar 19
Sureserve Group plc Announces Directorate Change Sureserve Group plc announced that Bob Holt, has decided to step down from his position as Executive Chairman and leaves the Company's board ahead of the Annual General Meeting. For an interim period, Robert Legget, Senior Independent Director, will be appointed Chairman of the Company and Peter Smith, Chief Financial Officer, will be appointed as Interim Chief Operating Officer while the Board begins the formal process to appoint a new independent Non-Executive Chairman and a new Chief Executive. The Group will provide an update on this process as and when appropriate. Is New 90 Day High Low • Feb 12
New 90-day high: UK£0.68 The company is up 31% from its price of UK£0.52 on 13 November 2020. The British market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.71 per share. Price Target Changed • Feb 05
Price target raised to UK£0.80 Up from UK£0.71, the current price target is an average from 3 analysts. The new target price is 26% above the current share price of UK£0.64. As of last close, the stock is up 34% over the past year. Reported Earnings • Feb 03
Full year 2020 earnings released: EPS UK£0.04 (vs UK£0.027 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: UK£195.7m (down 7.7% from FY 2019). Net income: UK£6.31m (up 51% from FY 2019). Profit margin: 3.2% (up from 2.0% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 03
Revenue misses expectations Revenue missed analyst estimates by 4.3%. Over the next year, revenue is forecast to grow 16%, compared to a 3.8% growth forecast for the Commercial Services industry in the United Kingdom. Announcement • Feb 03
Sureserve Group plc, Annual General Meeting, Mar 18, 2021 Sureserve Group plc, Annual General Meeting, Mar 18, 2021. Agenda: To propose final dividend for 2020. Announcement • Dec 23
Sureserve Group plc to Report Fiscal Year 2020 Results on Feb 02, 2021 Sureserve Group plc announced that they will report fiscal year 2020 results on Feb 02, 2021 Is New 90 Day High Low • Dec 22
New 90-day high: UK£0.57 The company is up 14% from its price of UK£0.51 on 23 September 2020. The British market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£8.02 per share. Is New 90 Day High Low • Dec 07
New 90-day high: UK£0.55 The company is up 6.0% from its price of UK£0.52 on 08 September 2020. The British market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£6.68 per share.