SANNE Group Plc A significant year of growth and evolution

SANNE Group Plc (LON:SNN), a leading global provider of alternative asset and corporate services, announces its results for the year ended 31 December 2018.

1. Restated for prior year adjustments detailed in note 15 of the financial statements and note 4 below

2. Underlying results for the year have been presented after the exclusion of non‐underlying items. Within operating profit and profit before tax, these items include, amongst other costs, acquisition and integration costs (2018: £1.2m), share based payments where linked to acquisitions (2018: £1.8m) and amortisation of intangible assets (2018: £15.7m). Further details can be found in note 9 of the consolidated financial statements

3. Constant currency represents the 2018 performance based on 2017 FX rates to eliminate movements due to FX

4. Underlying diluted earnings per share is presented with an adjustment to the tax charge for non-underlying items which is different to prior years (see the CFO Report and note 11 to the financial statements)

5. Luxembourg Investment Solutions S.A. (“LIS”) and Compliance Partners S.A. (“CP”)

Operational Highlights:

– Group revenue growth of 27.2%3 with organic revenue growth of 12.3%3

– Record new business wins with annualised revenue of approximately £24.5 million secured in 2018 (2017: £20.9 million)

– Strong performance for the year within the Group’s closed-ended Alternatives and Corporate Businesses (86% of Group revenues):

o EMEA and North America Alternatives segments delivered organic growth of 16.3%3 and 16.1%3 respectively

o Momentum continues to build in the Group’s Asia-Pac & Mauritius business with organic growth in the period of 12.2%3

– Targeted investment across the Group’s people, processes and systems strengthening the Group’s scalable global platform

– Underlying operating profit margin of 31.1% (2017: 34.3%) following the targeted investment, with the second half increasing by more than 100bps versus the first half

– Increased jurisdictional footprint in the year with the addition of Spain and France as well as Japan shortly after the year end

– Integration of the acquisitions of LIS5, CP5 and AgenSynd are progressing well

– Successful refinancing of the Group’s debt facilities increasing total committed facility to £150 million with a £70 million accordion facility

Outlook

– Good momentum in Alternatives and Corporate businesses positions SANNE well for further growth in 2019

– Strong market backdrop with continued addressable market growth

– Expectation of improvement in underlying operating profit margin

– We continue to review various potential acquisitions within a healthy pipeline of opportunities

– Board expects to deliver a strong performance in 2019 and remains confident in the medium and long-term prospects for the Group

Dean Godwin, Chief Executive Officer of Sanne Group plc, said:

“2018 was a significant year of growth and evolution for SANNE. Our core businesses continued to perform strongly, particularly in EMEA and the US, and we are encouraged to see the momentum building in Asia-Pacific Mauritius. Importantly, SANNE is now a business with a truly global platform and with a growing presence in the world’s most attractive regions.”

Martin Schnaier, Chief Executive Officer Designate of Sanne Group plc said:

“We are excited about the opportunities in our markets and are confident that the investments we have been making in our platform will further strengthen our competitive advantage and scale our business in the years ahead. These investments, and the strong momentum we are seeing in our business, give us confidence in our prospects and ambitious growth expectations.”