Simon Thompson’s latest deep dive equity research report details the investment case for an Aim-listed financial advisory group with improving cash-flow performance, a progressive dividend policy and consolidation opportunities, too.
The company is on a roll: analysts have raised their earnings estimates three times since autumn, an upgrade cycle that looks far from over, as a raft of contract awards this year highlights. As the preferred financial adviser to large organisations, trade unions and affinity groups which have well over 6m members between them, this company has created a highly profitable distribution pipeline for its network of advisers – one that’s being significantly undervalued by investors.
Bear points include UK economic uncertainty amid a broader global slowdown as Brexit negotiations enter a critical phase; additional regulatory requirements for the financial advice industry (Mifid II) and generally around customer data (GDPR); and a tight professional indemnity market.
