TEAM has released a year-end trading update, revealing revenues and assets under management/advice (AUM/A) that exceed earlier forecasts, while underlying EBITDA is slightly below projections. The company described its performance as broadly in line with market expectations. However, the notable revenue increase—£2 million higher than the previously forecast £8 million for FY24—indicates that TEAM’s international distribution strategy is delivering promising results. With audited full-year results due early next year, it is anticipated that international AUA growth will surpass initial projections. These assets are expected to transition to being managed directly by TEAM, enhancing profitability by reducing reliance on third-party fund managers.
Market valuations currently position TEAM at 3.8x projected September 2026 earnings and 2.0x for 2027. Despite this, the current share price appears to reflect concerns over whether the company can attract sufficient assets to achieve profitability without requiring further dilution. TEAM has announced plans to raise additional capital to support its growth strategy.
A discounted cash flow analysis, using a 10% weighted average cost of capital (WACC) and factoring in a conservative 16% medium-term growth rate, yields a fair value estimate of 70p per share—more than six times the current share price. TEAM’s explicit revenue forecasts project a compound annual growth rate (CAGR) of 26% from 2023 to 2027. This growth, coupled with an efficient operational model that channels client assets into a largely fixed-cost investment management structure in Jersey, suggests significant positive cash flow impact in the years ahead.
TEAM’s latest results demonstrate the potential for sustainable growth as its international strategy continues to gain traction. With further developments in asset management and revenue growth, the company may achieve substantial gains in profitability and shareholder value.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
