Sanderson Group PLC Pitch (w/ DCF)
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Transcript of Sanderson Group PLC Pitch (w/ DCF)
Tamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Sanderson Group PLCPresentation
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Background
Software solutions (multi-channel retail and manufacturing)
Tailor made to cater for individual needs
Cater directly to individual needs
Efficiency for clients and savings for their consumers
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Performance
Shown growth over the long run
Falling income despite rising revenue due to rise in admin costs
DPS and EPS rising
Debt free
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Competitor analysis
Blur Group
- Owns and operates online exchanges
- Allows for the purchase/sale of business services
Ibex Global Solutions
- Provides contact centre services and other outsourcing solutions
- Customer care support, business/consumer telesales and technical support services
SCISYS
- Supplies bespoke software systems
- Media & broadcast, space, government and defence
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Competitor Analysis (Financials)
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Metric Sanderson Group PLC
Blur Group PLC SCISYS PLC Ibex Global Solutions PLC
Market capitalisation (on Oct. 24 2014) (£) 35.41m 34.95m 26.40m 46.50m
Revenue (FY 2013) (£) 13.83m 4.78m 42.60m 184.02m
Revenue (FY 2012) (£) 13.37m 2.81m 35.50m 141.51m
Profit before tax (FY 2013) (£) 1.94m (6.53)m 1.50m 0.72m
Profit before tax (FY 2012) (£) 1.48m (1.87)m 2.02m (17)m
P/E ratio 19.82 N/A 16.2 93.63
Tamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Financial Forecast
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Sale of Sanderson RBS
5yr revenue growth stat skewed by sale of ‘Sanderson RBS’ division
Sale proceeds were put towards paying off debt, building up cash reserves
We removed Sanderson RBS’ share of the pre-sale revenue for our forecast
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30 Sep '13 30 Sep '12 30 Sep '11 30 Sep '10 30 Sep '09
Revenue 13.83 13.37 14.06 27 24.9
Profit 1.97 1.91 1.71 1.69 -0.33
Jan 1
Share
Price
68.88 50.38 28 27.6 17.9
Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Historical Financial Data
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11.5
12
12.5
13
13.5
14
14.5
15
2009 2010 2011 2012 2013
Revenue
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2010 2011 2012 2013
Revenue Growth YoY (%)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2009 2010 2011 2012 2013
CoGS% of revenue
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2009 2010 2011 2012 2013
SG&A % of revenue
Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Historical Financial Data (cont.)
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Historical Financial Data (cont.)
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
DCF AssumptionsBased on past performance
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
FCF
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
DCF
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David WelterTamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
FCF Monte Carlo Sim
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Tamer Al Ghussein, Aruna Nilaweera, David Peat, David Welter
Questions?
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