Hardman & Co Research: 1pm (OPM): Group synergies coming through

Hardman & Co: Group synergies coming through

The FY'18 results delivered exactly what management promised. Loan origination was up 72%, revenue rose 78%, pre-tax profits increased 93%, while EPS grew 24%. The synergies from being a bigger group are emerging. Funding costs have fallen rapidly. Perhaps of greater importance, cross-group sales leads were £13m in 4Q FY'18. Not all will convert, but this represents nearly 10% of FY'18 origination. While we note a retiring director's 6% stake may be viewed as a stock overhang, the implied May 2019 P/E of 6.7x and price to book of 0.9x, appears an anomaly given the downside risk highlighted in our sensitivity analyses.

Please click here for the full report:

http://www.hardmanandco.com/docs/default-source/company-docs/1pm-plc-documents/12.09.18-group-synergies-coming-through.pdf

Hardman & Co Research can still be accessed for free after MiFID II. Please click here to read the statement.

About Hardman & Co: For the past 21 years Hardman has been producing specialist research designed to improve investors' understanding of companies, sectors, industries and investment securities. Our analysts are highly experienced in their sectors, and have often been highly rated by professional investors for their knowledge. Our focus is to raise companies' profiles across the world with high-quality research, investor engagement programmes and advisory services.

Hardman Research Ltd, trading as Hardman & Co, is an appointed representative of Capital Markets Strategy Ltd and is authorised and regulated by the Financial Conduct Authority; our FCA registration number is 600843. Hardman Research Ltd is registered at Companies House with number 8256259.

Our research is provided for the use of the professional investment community, market counterparties and sophisticated and high net worth investors as defined in the rules of the regulatory bodies. It is not intended to be made available to unsophisticated retail investors. Anyone who is unsure of their categorisation should consult their professional advisors. This research is neither an offer, nor a solicitation, to buy or sell any security. Please read the note for the full disclaimer.