SSI [M-PF +1.8%] - Valuation boils down to interest spread modelling - Initiation

We initiate with a MARKET PERFORM recommendation on SSI shares due to the following. Brokerage business revolves around deploying margin lending book. SSI is a retail focused broker with peripheral business lines, some sizeable, of questionable value when incorporating the cost of capital. This report presents a different narrative from that presented in SSI’s financial accounts. Our narrative presents a brokerage operation that is costly to run because of its retail focused nature.