SEC Newgate rallies 13% – results meet expectations following merger

Research, communications and advocacy group SEC Newgate SpA (LON:SECG) announced on Tuesday that it expected to post strong full-year results following its merger with Porta Communications in September 2019.

It said results for the joint group were expected to be in line with management expectations.

Forecast unaudited consolidated total turnover is EUR 47 million, alongside consolidated unadjusted Operating Profit of c. EUR 2.3 million and consolidated unadjusted PBT of c. EUR 1.6 million.

The company added that its net debt at the year’s end was expected to be c. EUR 9.0 million, excluding the impact of IFRS 16 adjustments.

SEC Newgate comments

Fiorenzo Tagliabue, Group CEO, stated:

“The unaudited consolidated figures reflect the significant progress we have made since the merger in September 2019. Our three-year Strategic Plan is being implemented, an example of which was our replacement €3 million banking facility secured with Deutsche Bank S.p.A., on preferable terms with no security or covenants, reflecting the improved financial stability of the Group.”

“Our agile teams are now working together across the communications spectrum building and protecting brands, reputations and business. We are committed to creating positive change for our people, clients and shareholders and have had a strong start to the new financial year.”

Investor notes

Following Tuesday’s announcement, the SEC Newgate shares were up 13.70% or 5.00p, to 41.50p per share 04/02/20 11:50 GMT. The Group’s p/e ratio is 4.71, their market cap stands at £9.70 million.

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.