A less-than-favourable self-invested personal pension (Sipp) market didn’t stop Curtis Banks (CBP) from reporting full-year numbers marginally ahead of analysts’ expectations after the pension scheme provider added more than 6,000 new Sipps last year. That led to a 6 per cent increase in revenues, while reported operating margins grew from 25.8 per cent to 27.1 per cent year on year following the launch of a new product, certain cost-cutting measures and an office closure.
Management is still focused on improving the quality of earnings, and is targeting a 30 per cent operating margin in the medium term. That’s despite industry-wide challenges such as tighter regulation around non-standard assets and defined benefit (DB) pension transfers. The market also remains ripe for consolidation, leading broker Peel Hunt to highlight the “potential” for future deals. Chief executive Will Self concurs, but says organic growth should still be the main driver of better earnings this year. To that end, the group is also exploring whether to provide additional services to its clients, specifically when it comes to commercial property assets.
For now, analysts at Peel Hunt still expect adjusted pre-tax profits of £13m in 2019, giving EPS of 19.1p, compared to £12m and 17.3p in 2018.
| CURTIS BANKS (CBP) | ||||
| ORD PRICE: | 291p | MARKET VALUE: | £157m | |
| TOUCH: | 290-304p | 12-MONTH HIGH: | 344p | LOW: 254p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 92p* | NET CASH: | £13.6m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 10.1 | 3.1 | 6.0 | nil |
| 2015 | 17.0 | 4.1 | 7.1 | 3.5 |
| 2016 | 29.7 | 4.5 | 7.2 | 4 |
| 2017 | 43.6 | 5.9 | 9.8 | 6.3 |
| 2018 | 46.1 | 10.1 | 15.3 | 8 |
| % change | +6 | +73 | +57 | +28 |
| Ex-div: | 25 Apr | |||
| Payment: | 23 May | |||
| *Includes intangible assets of £44.1m, or 82p a share | ||||
