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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