Curtis Banks Group PLC – CBP – Final Results

Curtis Banks Group PLC – CBP – Final Results

Curtis Banks Group PLC is pleased to announce its final results for the 12 months to 31 December 2020. These results represent the full 12 month period including the fundraising and refinancing activities in July 2020; 5 months contribution from Dunstan Thomas and 2 months contribution from Talbot and Muir.

 

Financial Highlights

  • Operating revenue increased by 10% to £53.9m (2019: £48.9m)
  • Adjusted profit before tax1 remained stable at £13.4m (2019: £13.4m)
  • Adjusted operating margin2 decreased to 26.0% (2019: 28.1%)
  • Profit before tax decreased by 32% to £7.4m (2019: £10.9m)
  • Adjusted diluted EPS decreased by 8% to 17.9p (2019: 19.4p)3
  • Gross organic growth in own Mid and Full SIPP numbers of 7.8% (2019: 7.5%) with total SIPPs, including third party administered, now 82,224 (2019: 76,541)
  • Attrition rate on Mid and Full SIPPs decreased to 4.6% (2019: 5.7%)
  • Assets under Administration ("AuA") increased by 11% to £32.4bn (2019: £29.1bn)
  • Proposed final dividend of 6.5p (2019: 6.5p) making a full year payment of 9.0p (2019: 9.0p)

Operational Highlights

  • The Group reduced its overall sensitivity to interest rates by increasing the annual SIPP administration fees payable on Mid and Full SIPPs with effect from February 2021
  • The acquisition of two high-quality businesses in Talbot and Muir and Dunstan Thomas supplemented the Group's core offering with additional scale and technology solutions
  • The Group made solid progress on its five year system strategy with the upgrade of the administration platform in 2020
  • The Group responded quickly to the COVID-19 pandemic to implement its business continuity plan and limit the severity of its impact on the business
  • Jill Lucas appointed to the Board as Independent Non-Executive Director and Chair of Dunstan Thomas to maximise technology-focused growth opportunities across the Group

 

 

 

Highlights and Key Performance Indicators:

20202019
Financial

 

Operating revenue£53.9m£48.9m
Adjusted profit before tax1£13.4m£13.4m
Profit before tax£7.4m£10.9m
Adjusted operating margin226.0%28.1%
Diluted EPS9.5p15.9p
Adjusted diluted EPS317.9p19.4p
Operational

 

Number of SIPPs administered82,22476,541
Assets under Administration£32.4bn£29.1bn
Total organic new own SIPPs in year4,1134,567
Attrition rates (Mid & Full SIPP)4.6%5.7%
Number of properties administered8,9056,352

Profit before tax, amortisation and non- recurring costs

2 The ratio of operating profit before net finance costs, amortisation and non-recurring costs to operating revenues.

Adjusted to reflect impact of bonus factor within shares issued during the year ended 31 December 2020.

Will Self, Chief Executive Officer of Curtis Banks, commented: "Curtis Banks made strong progress in 2020. The business effectively weathered the impact of the COVID-19 pandemic and made good progress on a number of strategic initiatives to provide us with a platform for future, long-term, sustainable growth. Operating revenue grew by 10% to £53.9m, reflecting acquisitive growth and steady performance in our core business of Mid and Full SIPPs, while Assets under Administration increased by 11% to £32.4bn."

"The business demonstrated a high degree of resilience in 2020. We completed the acquisitions of Talbot and Muir and Dunstan Thomas, two high-quality businesses which provide us with additional scale in our core line of business and the opportunity for technological innovation further down the line, respectively. We changed our fee model to ensure greater transparency to our clients and a more robust, consistent income stream which reduces our reliance on interest income. Our system strategy also continued to be delivered at pace, with the upgrades to our administration platform commencing last year."

"Looking ahead, we have a clear vision for long-term growth. Curtis Banks is evolving from a primarily focused SIPP administrator to a more holistic retirement group which provides technology and complementary services to the advised retirement market. We are confident that our efforts to diversify our core offering and revenue streams can reach new areas of an ever-increasing addressable market to provide the foundations for growth in 2021 and beyond."

Analyst Presentation

 

An analyst briefing is being held at 09:30 BST on 7 April 2021 via an online video conference facility.  To register your attendance, please contact [email protected]

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