|Master Investor Magazine
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The price of shares in trust and fund administrator Sanne (LON:SNN) has plunged by 33.38% to 500.99p (as of 13:15 BST) after it posted results for the six months ended 30th June. While revenues grew healthily, margins dropped as the company failed to achieve expected operational efficiencies and overhead spend rose. As a result of this and a rise in effective tax rate due to a product mix shift, the company has cut its full year profit guidance.
CEO Martin Schnaier commented: “The Group has delivered a good revenue performance overall in the first half. Our core Alternatives businesses across our global platform operate in growing markets and are therefore well set to continue driving this revenue growth.
The first half margin is a disappointing outcome and well below the optimal margin for the business. We have taken action to address the increased spend and delay in operating efficiencies being realised.
We remain committed to investing in the significant growth opportunities that we are delivering on in our core markets and products. Although this investment is impacting our margin guidance for the current year, the priority is to ensure the Group is well positioned to deliver sustainable growth in the medium and long term“.