GB : Sanne Group - Strong growth, but shares fair value

FY 20 results were in line with 5.8% organic net revenue growth in constant currency. EPS grew 19.3%, but benefited from a 7% FX tailwind. Our analysis confirms that industry revenue drivers remain strong, there is scope for accretion through deals and margins are high relative to peers. However, we estimate only c.8% organic revenue growth in FY 21 and new business wins have not grown in value since FY 18. The shares are fair value and we believe there are better opportunities elsewhere at cheaper multiples. We remain HOLD, TP 660p from 610p.