Sanne swings to loss as Apex takeover costs rise

1st Apr 2022 07:43

(Sharecast News) - Corporate services provider Sanne Group reported an annual loss as costs increased due to its yet-to-be-completed takeover by Apex.

The company on Friday reported a pre-tax loss of £2.2m, compared to a profit of £20.5m a year earlier. On an underlying basis pre-tax profit was £50.6m compared to £44.9m.

Turnover rose grew 16.5 percent to £203.7m, while underlying net revenue was £194.2m, up 14.4%.

Sanne booked non-underlying items of £50.8m including costs related to its takeover by Apex.

"Whilst the acquisition represents a good outcome for Sanne shareholders, it has resulted in a significant amount of additional transaction related costs in 2021," the company said.

Apex won a race to takeover Sanne, beating private equity rival Cinven with a 920p-a-share offer valuing its target at £1.51bn.

Looking ahead, Sanne noted that the significant new business momentum seen in the second half of 2021 has continued in 2022 positioning it well to deliver a strong financial performance for 2022.

The acquisition of the company by Apex is now expected to complete either late in the second quarter or early in the third quarter of 2022.