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Sureserve Group (SUR)

Business description

Sureserve Group (previously Lakehouse) is engaged in asset and energy support services, focused on customers in the outsourced public and regulated services sectors in the UK. The group comprises two divisions: compliance and energy services.

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 181.5 9.0 5.4 2.8 11.9 N/A
2018A 190.8 9.2 6.6 3.4 9.8 N/A
2019E 202.3 10.1 7.7 3.9 8.5 N/A
2020E 212.5 10.8 8.3 4.3 7.7 N/A

Last updated on 28/01/2019

Investment summary

FY18 was a year of transition for Sureserve, as it divested its Contracts and Property maintenance operations to focus on Compliance and Energy support services. The prospective P/E of 6.7x warrants investor attention. The investment thesis is that the group will continue to benefit from being more focused, its remaining divisions have strong regulatory drivers underpinning revenue growth, and there remains potential to improve margins and scope for growth through consolidating a fragmented industry. The outlook statement references a strong order book and a strong start to FY19, performing ahead of management expectations.

Last updated on 01/02/2019

Industry outlook

Growing corporate and government awareness around safety and energy efficiency create an attractive backdrop to Sureserve’s compliance and energy services business, where strong regulatory drivers have the potential to deliver substantial medium-term EBITA growth. The management team appointed in July 2016 to reverse the decline in performance is taking bold decisions.

Last updated on 01/02/2019

Key management

Robert Holt, Executive Chairman

Company address

1 King George Cl
Romford
RM7 7LS
United Kingdom
01708 758 800
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