Strong half-year performance with continued AuM and earnings growth
Highlights for H1 2025
· Assets Under Management ("AUM") increased by 35%[1] to
· Fee-paying AUM up 37% to
· Private Equity Fund V final close at
· Private Credit Fund IV commitments reached
· Active capital deployment with fee-paying AUM increased to
· Full year guidance reaffirmed
· Interim dividend declared of
· Strengthening commitment to
Commenting on the H1 2025 performance,
"Pollen Street delivered strong performance in the first half of 2025, supported by significant fundraising progress across both Private Equity and Private Credit. We have visibility of exceeding target in Private Credit Fund IV which, together with the out-performance on Private Equity Fund V, demonstrates the confidence our investors have in us and the appeal of our differentiated platform.
This, alongside good levels of deployment, has driven further growth in Fee-Paying AuM to
Looking ahead, we are encouraged by growing demand for mid-market alternatives and asset-based lending in particular. With our sector expertise, and strong track record, we are well positioned to capitalise on these trends and remain confident in delivering our strategic objectives.
We are also pleased to welcome
Financial Performance
· Management fees up 79% YoY to
· Fund Management income up 55% to
· Fund Management EBITDA increased by 112% to
· Income on Net Investments Assets of
· Operating profit increased by 28% to
· Earnings per share increased by 25% to
Fundraising
· Private Equity Fund V: Final close in
· Private Credit Fund IV:
Deployment
· Continued active capital deployment across both strategies, supporting further growth in Fee-Paying AUM and strong fund performance
· Two new platform investments and seven bolt-on acquisitions in Private Equity
· 14 new deals completed and
Strategic priorities for 2025
· Continue fundraising for Private Credit Fund IV
· Active deployment across both strategies
· Progressing the Private Equity realisation pipeline
· Strategic use of share buybacks within the capital allocation framework
Guidance Reaffirmed
H2 2025 Outlook
· Fee-paying AUM: rising with Credit IV deployment
· Management fees: Recurring management fees growing. No catch-up fees
· Performance fees: normalising towards lower end of long-term guidance
· Investment Company returns: Full year returns expected in line with FY24
Medium - long-term confidence remains
· AuM growth:
· Management fees: long-term average fee rate of c.1.25%-1.50%
· Performance fees: long-term average 15%-25% of total Fund Management Income
· Fund Management EBITDA margin: >50% in medium-term
· Investment Company returns: Rising to low double digits in medium term
Dividend
· The Board has declared an interim dividend of
The Interim Accounts can be found on the website https://ir.pollenstreetgroup.com/investors/financial-information/
About
Pollen Street is an alternative asset manager dedicated to investing within the financial and business services sectors across both Private Equity and Private Credit strategies. The business was founded in 2013 and has consistently delivered top tier returns alongside growing AuM.
Pollen Street benefits from a complementary set of asset management activities focused on managing third-party AuM (the "Asset Manager") together with on-balance sheet investments (the "Investment Company").
The Asset Manager raises capital from high quality investors and deploys it into its Private Equity and Private Credit strategies. The strong recurring revenues from this business enable delivery of scalable growth.
POLN is listed on the
LEI: 894500LP94M98N8CY487
For investors:
A presentation and Q&A will be held for analysts at
The full presentation is available for on the website www.pollenstreetgroup.com.
Register for the webinar: https://pollencap.zoom.us/webinar/register/WN_cL18YhOTTjqJ_IATgBiY3Q
For further information about this announcement please contact:
Pollen Street - Corporate Development Director
+44 (0)20 3965 5081
+44 (0)20 7623 2323
+44 (0)20 7597 4000
FGS Global
PollenStreetCapital-LON@fgsglobal.com
1. CEO Report
Chief Executive Officer
The first half of 2025 saw Pollen Street make strong progress against our strategic goals, resulting in continued growth in both AuM and earnings. This performance reflects the strength of our platform and the ongoing demand for our investment strategies and underpins our confidence in delivering the Group's medium-term targets, including our
We are proud that our investors - established relationships and new partners - continue to place their trust in us, committing
We continue to build on the progress made in 2024, with strong fund performance and platform growth demonstrating the effectiveness of our strategic plan.
Strong Fundraising
Across both
In Private Equity we completed the successful final close of our flagship Fund V in July, securing commitments of
Private Credit IV also achieved strong AuM growth with
Private Equity: Building Next Generation Leaders
We are continuing our mission of building the next generation of leaders across the European financial and business services landscape by making controlling-interest investments in middle-market companies across
So far during 2025 we have completed the acquisition of two additional platform investments - OrderYOYO, a provider of payment-enabled ecommerce solutions to restaurants; and
Private Credit: Controlled Risk
Our credit strategy provides asset-based lending facilities to non-bank lenders, leasing businesses, technology companies, and other firms with diverse portfolios generating contractual cash flows. Asset-based lending is the funding behind the everyday credit that powers our economy and society. Our experienced team invests in asset-backed facilities ranging from SME loans, mid-market residential family homes, government-backed receivables, and fleet financings, delivering superior returns with controlled risk and significant credit protection, achieved through both asset security and transaction structuring.
The high pace of deployment continued during the period with 14 new deals completed and
Investment Company: Delivering Returns and Growth
Our balance sheet is an important driver of income for Pollen Street. Our balance sheet delivers consistently strong performance with investments across our strategies but with a continued focus on our credit strategy. We have committed
Sector Outlook: Appetite for Alternatives and the Mid-market
The strong fundraising in H1 2025 is testament to sustained investor interest in our strategies as well as growing demand for Private Equity and Private Credit more generally. The alternative asset management industry continues to expand, generating over half of global AuM revenue despite accounting for less than a quarter of total AuM.
Growth in private markets is supported by long-term outperformance and increasing investor familiarity. In the
Looking Ahead: Momentum in Performance and Growth
As we look ahead, these trends and our positioning in the market gives us confidence in maintaining our momentum through the second half of the year and beyond. Notwithstanding uncertain macroeconomic and geopolitical conditions, our clear strategic direction and focus on performance continues to drive our delivery for our clients and shareholders.
Strategic Priorities:
· Continue fundraising for Private Credit Fund IV;
· Active deployment across both Private Equity and Private Credit strategies;
· Progressing the Private Equity realisation pipeline; and
· Strategic use of share buybacks within the capital allocation framework.
I am delighted to welcome
I would like to thank our fund investors and shareholders for their support; our team for all their hard work in achieving this strong start to the year; and the
Chief Executive Officer
2. CFO Report
Chief Financial Officer
Continuing Growth
The Group's Interim Results reflect continued progress on fundraising and strong execution against our strategic objectives.
This has driven an increase in total AuM to
We were pleased to announce the final close of Private Equity Fund V at
We are also pleased with the strong fundraising momentum for Private Credit Fund IV which drove
Deployment rates have been good across both parts of the business. In Private Equity, two new platform deals, and seven bolt-on transactions have been signed. In Private Credit, 14 new deals have been completed with
Strong growth in third party AuM across both Private Equity and Private Credit had the effect of temporarily diluting the Investment Company's returns on its investments in these funds through equalisation with new investors. The equalisation process aims to treat all investors as having come into the fund at the first close. To do so, gains initially allocated to earlier investors in the fund are re-allocated to later investors pro rata to the increased fund size. In return, newer investors pay interest to the older investors to compensate them for their cost of capital on funds which have previously been drawn. During H1, the Investment Company has also seen some seasonality in the recognition of returns on its equity positions, in part reflecting the phasing of underlying portfolio company budgets which are typically targeted to their own December year-ends. This has reduced reported annualised Net Investment Return for H1 2025 to 8.4 per cent. However, underlying portfolio performance remains robust and consistent with our full year expectations to deliver Return on Net Investment Assets in-line with 2024 (Full Year 2024: Income on Net Investment Assets of
Substantial management fee growth, combined with the benefits of the Group's inherent operational gearing, delivered a year-on-year increase in Operating Profit for the Group of 28 per cent to
Increasing Asset Manager Share of Earnings
As at
|
Total AuM |
H1 2025 (£ billion) |
(£ billion) |
H1 2024 (£ billion) |
|
Private Equity |
3.8 |
3.5 |
2.7 |
|
Credit |
2.3 |
1.9 |
1.8 |
|
Total |
6.1 |
5.4 |
4.5 |
Private Equity Fee-Paying AuM increased to
|
Fee-Paying AuM |
H1 2025 (£ billion) |
(£ billion) |
H1 2024 (£ billion) |
|
Private Equity |
2.9 |
2.6 |
2.1 |
|
Credit |
1.8 |
1.4 |
1.3 |
|
Total |
4.7 |
4.0 |
3.4 |
Fund Management Income consists of management fees, performance fees, and carried interest. Growth in revenue has been primarily driven by the increase in the Group's Fee-Paying AuM, alongside the positive impact of catch-up fees, as further detailed below. Total Income rose by 55 per cent to
|
Asset Manager Profitability |
H1 2025 (£ million) |
H1 2024 (£ million) |
|
Total Income |
41.4 |
26.8 |
|
Administration Costs |
(23.7) |
(18.4) |
|
Fund Management EBITDA |
17.7 |
8.4 |
|
Fund Management EBITDA Margin |
43% |
31% |
Fund Management Administration Costs increased by 29 per cent to
In previous reporting periods, including the interim financial statements for the six months ended
Fund Management EBITDA contributed 57 per cent of the Group EBITDA for the period, up from 35 per cent in H1 2024.
|
Asset Manager Financial Ratios |
H1 2025 |
H1 2024 |
|
Management (% of Average Fee-Paying AuM) |
1.76% |
1.26% |
|
Performance (% of Fund Management Income) |
8% |
21% |
|
Fund Management EBITDA Margin (% of Fund Management Income) |
43% |
31% |
Private Equity funds generally charge management fees on committed capital. Investors who join after the first close are typically subject to catch-up fees, ensuring that all investors are aligned from the date of the initial closing. In contrast, Private Credit funds typically charge fees on net invested capital, with capital recycling permitted until the end of the investment period. Management fee rates remain fixed throughout the life of each fund.
The Group has provided long-term guidance for a blended management fee rate across Private Equity and Private Credit of between 1.25 per cent and 1.5 per cent. The rate for H1 2025 exceeded this range at 1.76 per cent (H1 2024: 1.26 per cent), primarily due to the high level of catch-up fees earned in relation to Private Equity Fund V. No further catch-up fees are expected in relation to Private Equity Fund V, with the final close of that fund having been completed in July. Excluding the
In addition to management fees, the Group earns performance fees and carried interest, enabling it to share in the profits generated by its managed funds. These amounts are variable and depend on performance exceeding specific return thresholds ("hurdles") over the life of each fund. The Group is entitled to 25 per cent of carried interest across all Private Equity funds from Private Equity Fund IV onwards, and all Private Credit funds from Private Credit Fund III onwards.
For FY25, carried interest from Private Equity funds is expected to be weighted toward the second half of the year, consistent with portfolio company budgets that align with December year-ends. Performance fees accounted for 8 per cent of Fund Management Income in the first half (H1 2024: 21 per cent), reflecting this seasonal effect, and are expected to normalise for the full year towards the lower end of the Group's long-term guidance of 15 per cent to 25 per cent of Fund Management Income on average.
Investment Company Returns in Line with Expectations
Income on Net Investments Assets of
|
Investment Company Segment |
H1 2025 |
H1 2024 |
|
Investment Assets |
|
|
|
Average Net Investment Assets |
|
|
|
Income on Net Investment Assets |
|
|
|
Reported Net Investment Return |
8.4 per cent |
9.7 per cent |
Operating Profit and Tax
Profit before Tax for the Group increased by 28 per cent to
The charge for depreciation and amortisation is
The corporation tax charge for the period was
As detailed in Note 5 to the financial statements, the Group has a lower effective tax rate than the
|
|
H1 2025 (£ million) |
H1 2024 (£ million) |
|
Operating profit of Asset Manager |
17.7 |
8.4 |
|
Operating profit of Investment Company |
13.3 |
15.8 |
|
Operating loss of Central segment |
(0.1) |
(0.1) |
|
Operating profit of Group |
30.9 |
24.1 |
|
Depreciation and amortisation |
(1.3) |
(0.9) |
|
Profit before Tax |
29.6 |
23.2 |
|
Corporation tax |
(1.7) |
0.4 |
|
Profit after Tax |
27.9 |
23.6 |
Earnings Per Share and Dividend
Earnings per share (basic and diluted) increased by 25 per cent to
The Board is pleased to confirm an interim dividend for the period ended
The interim dividend will be paid on
During H1 2025, we completed
Outlook
The Group remains in a strong position and is strategically well-placed and well-resourced for further growth through H2 2025 and beyond. Fund Management Income for H2 is expected to be lower than for H1 given the benefit of catch-up fees received in H1. Fee-paying AuM will continue to grow as a result of further capital raises in Private Credit Fund IV and their subsequent deployment. Investment Company investment returns for the full year are expected to be in-line with the returns delivered in FY24, continuing our long track record of delivering stable and robust performance from our balance of direct positions and investments in
Chief Financial Officer
3. Risk Management & Principal Risks and Uncertainties
The Directors do not consider there to have been any material changes to the principal risks and uncertainties since the 2024 Annual Report and Accounts were published and the Directors expect the principal risks and uncertainties not to change over the second half of 2025.
Details of the Group's approach to risk management is set out within pages 54 to 62 of the 2024 Annual Report and Accounts, which is available in the financial information section of the Group's website.
The principal risks within the 2024 Annual Report and Accounts include: economic & market conditions, fundraising, management fee rates and other fund terms, investment underperformance and financial risks, talent and retention, and information security and resilience.
4. Directors' Responsibilities for the Financial Statements
The Directors, being the persons responsible, confirm that to the best of their knowledge:
a) the condensed set of Financial Statements contained within the Interim Report have been prepared in accordance with
b) the Interim Report includes a fair review, as required by Disclosure and Transparency Rule 4.2.7R, of important events that have occurred during the first six months of the financial year, their impact on the condensed set of unaudited Financial Statements, and a description of the principal risks and perceived uncertainties for the remaining six months of the financial year; and
c) the Interim Report includes a fair review of the information concerning related parties' transactions as required by Disclosure and Transparency Rule 4.2.8R.
Signed on behalf of the Board by:
Chair
5. Condensed Consolidated Financial Statements
6. Condensed Consolidated Statement of Comprehensive Income
|
|
|
For the period ended |
For the period ended |
|
|
Notes |
£'000 |
£'000 |
|
Management fee income |
3 |
35,180 |
18,773 |
|
Carried interest and performance fee income |
3 |
1,955 |
3,814 |
|
Interest income on Credit Assets held at amortised cost |
3, 7 |
16,970 |
24,223 |
|
Gains on Investment Assets held at fair value net of equalisation |
3, 8 |
9,733 |
7,530 |
|
Total income |
|
63,838 |
54,340 |
|
Expected credit loss release / (charge) |
3, 7 |
762 |
(1,152) |
|
Third-party servicing costs |
3 |
(566) |
(499) |
|
Net operating income |
|
64,034 |
52,689 |
|
Administration costs |
3 |
(24,882) |
(19,579) |
|
Finance costs |
3, 14 |
(8,295) |
(9,045) |
|
Operating profit |
|
30,857 |
24,065 |
|
Depreciation |
3 |
(921) |
(555) |
|
Amortisation |
3, 10 |
(320) |
(320) |
|
Profit before tax |
|
29,616 |
23,190 |
|
Tax (charge) / credit |
5 |
(1,689) |
381 |
|
Profit after tax |
|
27,927 |
23,571 |
|
Other comprehensive income Foreign currency translation reserve |
|
(425) |
(32) |
|
Total comprehensive income |
|
27,502 |
23,539 |
|
Earnings per share (basic and diluted) |
6 |
|
|
The notes to the accounts form an integral part of these interim financial statements.
7. Condensed Consolidated Statement of Financial Position
|
|
|
As at |
As at |
|
|
Notes |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
Credit Assets at amortised cost |
7 |
313,037 |
309,423 |
|
Investment Assets held at fair value through profit or loss |
8 |
207,297 |
194,176 |
|
Fixed assets |
|
1,089 |
1,149 |
|
Lease assets |
9 |
4,301 |
4,860 |
|
|
10 |
226,780 |
227,100 |
|
Carried interest |
11 |
26,303 |
25,073 |
|
Deferred tax asset |
5 |
2,190 |
3,256 |
|
Total non-current assets |
|
780,997 |
765,037 |
|
Current assets |
|
|
|
|
Trade and other receivables |
12 |
38,875 |
35,542 |
|
Current tax receivable |
|
- |
561 |
|
Derivative financial assets |
13 |
863 |
- |
|
Cash and cash equivalents |
|
6,724 |
11,195 |
|
Total current assets |
|
46,462 |
47,298 |
|
Total assets |
|
827,459 |
812,335 |
|
Current liabilities |
|
|
|
|
Interest-bearing borrowings |
14 |
262 |
498 |
|
Trade and other payables |
15 |
24,794 |
29,249 |
|
Lease liabilities |
9 |
1,516 |
1,376 |
|
Current tax payable |
|
2,116 |
- |
|
Derivative financial liabilities |
13 |
- |
1,467 |
|
Total current liabilities |
|
28,688 |
32,590 |
|
Total assets less current liabilities |
|
798,771 |
779,745 |
|
Non-current liabilities |
|
|
|
|
Interest-bearing borrowings |
14 |
206,022 |
187,767 |
|
Lease liabilities |
9 |
3,098 |
3,756 |
|
Deferred tax liability |
5 |
5,636 |
8,866 |
|
Total non-current liabilities |
|
214,756 |
200,389 |
|
Net assets |
|
584,015 |
579,356 |
|
Shareholders' funds |
|
|
|
|
Ordinary share capital |
16 |
602 |
610 |
|
Share premium |
16 |
543,450 |
549,757 |
|
Retained earnings |
16 |
40,595 |
29,196 |
|
Other reserves |
16 |
(632) |
(207) |
|
Total shareholders' funds |
|
584,015 |
579,356 |
The notes to the accounts form an integral part of these interim financial statements.
8. Condensed Consolidated Statement of Changes in Shareholders' Funds
For the period ended
|
|
Ordinary Share Capital |
Share Premium |
Retained Earnings |
Foreign Currency Translation Reserve |
Total Equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Shareholders' funds as at |
610 |
549,757 |
29,196 |
(207) |
579,356 |
|
Profit after taxation |
- |
- |
27,927 |
- |
27,927 |
|
Dividends paid |
- |
- |
(16,528) |
- |
(16,528) |
|
Buybacks |
(8) |
(6,307) |
- |
- |
(6,315) |
|
Foreign currency translation reserve |
- |
- |
- |
(425) |
(425) |
|
Shareholders' funds as at |
602 |
543,450 |
40,595 |
(632) |
584,015 |
For the year ended
|
|
Ordinary Share Capital |
Share Premium |
Retained Earnings |
Special Distributable Reserve |
Merger Reserves |
Foreign Currency Translation Reserve |
Total Equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Shareholders' funds as at |
642 |
- |
4,978 |
351,625 |
225,270 |
(269) |
582,246 |
|
Reallocation of reserves |
- |
576,895 |
- |
(351,625) |
(225,270) |
- |
- |
|
Profit after taxation |
- |
- |
49,598 |
- |
- |
- |
49,598 |
|
Reclassification of transaction costs |
- |
517 |
(517) |
- |
- |
- |
- |
|
Transaction costs in relation to the Reorganisation |
- |
(4,833) |
- |
- |
- |
- |
(4,833) |
|
Dividends paid |
- |
- |
(24,863) |
- |
- |
- |
(24,863) |
|
Buybacks |
(32) |
(22,822) |
- |
- |
- |
- |
(22,854) |
|
Foreign currency translation reserve |
- |
- |
- |
- |
- |
62 |
62 |
|
Shareholders' funds as at |
610 |
549,757 |
29,196 |
- |
- |
(207) |
579,356 |
The notes to the accounts form an integral part of these interim financial statements.
9. Condensed Consolidated Statement of Cash Flows
|
|
|
For the period ended 30 June 2025 |
For the period ended 30 June 2024 |
|
|
Notes |
£'000 |
£'000 |
|
Cash flows from operating activities: |
|
|
|
|
Cash generated from operations |
18 |
13,536 |
2,935 |
|
Investment in Credit Assets at amortised cost |
|
(63,073) |
(35,559) |
|
Distributions received on Credit Assets at amortised cost |
|
64,667 |
131,266 |
|
Dividends received from Investment Assets |
|
- |
368 |
|
Purchase of investments at fair value |
8 |
(19,082) |
(9,860) |
|
Proceeds from disposal of investments at fair value |
8 |
14,657 |
8,189 |
|
Tax paid |
|
(1,050) |
- |
|
Net cash inflow from operating activities |
|
9,655 |
97,339 |
|
Cash flows from investing activities: |
|
|
|
|
Purchase of fixed assets |
|
(296) |
(49) |
|
Net cash outflow from investing activities |
|
(296) |
(49) |
|
Cash flows from financing activities: |
|
|
|
|
Payment of lease liabilities |
9 |
(811) |
(782) |
|
Drawdown of interest-bearing borrowings |
14 |
64,205 |
97,000 |
|
Repayments of interest-bearing borrowings |
14 |
(47,000) |
(175,829) |
|
Transaction costs for financing activities |
14 |
385 |
(2,500) |
|
Interest paid on financing activities |
14 |
(7,766) |
(8,588) |
|
Share buybacks |
|
(6,315) |
(10,352) |
|
Dividends paid in the period |
17 |
(16,528) |
(8,347) |
|
Net cash outflow from financing activities |
|
(13,830) |
(109,398) |
|
Net change in cash and cash equivalents |
|
(4,471) |
(12,108) |
|
Cash and cash equivalents at the beginning of the period |
|
11,195 |
23,303 |
|
Cash and cash equivalents at the end of the period |
|
6,724 |
11,195 |
Interest received for the Group for the period ended 30 June 2025 was £15.3 million (H1 2024: £22.1 million)
The notes to the accounts form an integral part of these interim financial statements.
10. Notes to the Financial Statements
1. General information
The principal activity of the Group is to act as an alternative asset manager investing within the financial and business services sectors across both Private Equity and Private Credit strategies, as well as holding on-balance sheet investments consisting of both direct investments and investments in funds managed by Pollen Street. The principal activity of the Company is to be the holding company for two 100 per cent owned subsidiaries engaged in these asset management and investment activities.
2. Material accounting policies
Basis of preparation
These condensed consolidated interim financial statements ("interim financial statements") for the six months ended 30 June 2025 have been prepared in accordance with
The interim financial statements should be read in conjunction with the Annual Report for the year ended 31 December 2024 including the statutory accounts for the year to 31 December 2024 (the "2024 financial statements"). The Group's accounting policies, areas of significant judgement and significant accounting estimate, and the key sources of estimation uncertainty are consistent with those applied to the 2024 financial statements.
The information in these interim financial statements is unaudited and does not constitute statutory accounts within the meaning of the Companies (
These interim financial statements were approved by the Board of Directors on 15 September 2025. The unaudited interim condensed consolidated financial statements included in the interim financial statements have been reviewed by the Group's auditor, PwC, in accordance with International Standard on Review Engagements (
Going concern
The Directors have reviewed the financial projections of the Group, which show that the Group will be able to generate sufficient cash flows in order to meet its liabilities as they fall due within 12 months from the approval of these interim financial statements. These financial projections have been performed for the Group under stressed scenarios, and in all cases the Group is able to meet its liabilities as they fall due. The stressed scenarios included no new fundraising and late repayments of a number of structured facilities.
The Directors consider these scenarios to be the most relevant risks to the Group's operations. Finally, the Directors reviewed financial and non-financial covenants in place for all debt facilities within the subsidiaries of the Group with no breaches anticipated, even in the stressed scenario. The Directors are satisfied that the going concern basis remains appropriate for the preparation of the financial statements.
Related party transactions
All related party transactions that took place in the six months ended 30 June 2025 are consistent in nature with the disclosures in Note 25 to the 2024 financial statements. There have been no material changes to the nature or size of related party transactions since 31 December 2024.
3. Operating segments
The Group has two operating segments: the Asset Manager segment and the Investment Company segment.
The Asset Manager segment incorporates the activities of the Group that provide investment management and investment advisory services to a range of funds under management within Private Equity and Private Credit strategies. The primary revenue streams for the Asset Manager segment consist of management fees, performance fees and carried interest. Fund management services are also provided to the Investment Company segment, however fees from these services are eliminated from the Group consolidated financial statements. Fund Management EBITDA in the Strategic Report is the Operating Profit of the Asset Manager segment.
The following tables show the consolidated operating segments profit and loss movements for their respective periods:
|
|
For the period ended 30 June 2025 |
|||
|
Group |
Asset Manager £'000 |
Investment Company £'000 |
Central £'000 |
Group £'000 |
|
Management fee income |
29,564 |
- |
(2,759) |
26,805 |
|
Catch-up management fee income |
8,375 |
- |
- |
8,375 |
|
Carried interest and performance fee income |
3,424 |
- |
(1,469) |
1,955 |
|
Interest income on Credit Assets held at amortised cost |
- |
16,970 |
- |
16,970 |
|
Gains on Investment Assets held at fair value[5] |
- |
10,537 |
- |
10,537 |
|
Equalisation on Investment Assets held at fair value |
- |
(804) |
- |
(804) |
|
Total income |
41,363 |
26,703 |
(4,228) |
63,838 |
|
Expected credit loss (charge) / release |
- |
762 |
- |
762 |
|
Third-party servicing costs |
- |
(566) |
- |
(566) |
|
Net operating income |
41,363 |
26,899 |
(4,228) |
64,034 |
|
Administration costs |
(23,596) |
(5,390) |
4,104 |
(24,882) |
|
Finance costs |
(100) |
(8,195) |
- |
(8,295) |
|
Operating profit |
17,667 |
13,314 |
(124) |
30,857 |
|
Depreciation |
(921) |
- |
- |
(921) |
|
Amortisation |
- |
- |
(320) |
(320) |
|
Profit before tax |
16,746 |
13,314 |
(444) |
29,616 |
|
|
For the period ended 30 June 2024 |
|||
|
Group |
Asset Manager £'000 |
Investment Company £'000 |
Central £'000 |
Group £'000 |
|
Management fee income |
19,999 |
- |
(2,407) |
17,592 |
|
Catch-up management fee income |
1,181 |
- |
- |
1,181 |
|
Carried interest and performance fee income |
5,575 |
- |
(1,761) |
3,814 |
|
Interest income on Credit Assets held at amortised cost |
- |
24,223 |
- |
24,223 |
|
Gains on Investment Assets held at fair value[6] |
- |
7,681 |
- |
7,681 |
|
Equalisation on Investment Assets held at fair value |
- |
(151) |
- |
(151) |
|
Total income |
26,755 |
31,753 |
(4,168) |
54,340 |
|
Expected credit loss charge |
- |
(1,152) |
- |
(1,152) |
|
Third-party servicing costs |
- |
(499) |
- |
(499) |
|
Net operating income |
26,755 |
30,102 |
(4,168) |
52,689 |
|
Administration costs |
(18,311) |
(5,313) |
4,045 |
(19,579) |
|
Finance costs |
(94) |
(8,951) |
- |
(9,045) |
|
Operating profit |
8,350 |
15,838 |
(123) |
24,065 |
|
Depreciation |
(555) |
- |
- |
(555) |
|
Amortisation |
- |
- |
(320) |
(320) |
|
Profit before tax |
7,795 |
15,838 |
(443) |
23,190 |
4. Employees
The following tables show the average monthly number of employees and the Directors during the period:
|
Group - Average number of staff |
For the period ended 30 June 2025 |
For the period ended 30 June 2024 |
|
Directors |
6 |
7 |
|
Professional staff |
91 |
84 |
|
Total |
97 |
91 |
The following table shows the total staff costs for the period. This includes the seven Non-Executive Directors of
|
Group - Staff costs |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Wages and salaries |
15,466 |
12,460 |
|
Social security costs |
2,961 |
1,759 |
|
Defined contribution pension cost |
105 |
115 |
|
Total |
18,532 |
14,334 |
5. Corporation tax
a) Tax expense
The tax charge for the Group for the period was £1.7 million (H1 2024: £0.4 million credit).
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Current tax expenses |
|
|
|
|
3,622 |
1,503 |
|
Prior year adjustment |
231 |
(97) |
|
Total current tax |
3,853 |
1,406 |
|
Deferred tax expense |
|
|
|
Origination and reversal of timing differences |
(2,164) |
1,121 |
|
Relief from losses previously unrecognised |
- |
2,490 |
|
Recognition of losses previously unrecognised |
- |
(5,496) |
|
Prior year adjustment |
- |
98 |
|
Total deferred tax |
(2,164) |
(1,787) |
|
Total tax charge / (credit) |
1,689 |
(381) |
b) Factors affecting taxation charge for the year
The taxation charge for the year is based on the standard rate of
The effective tax rate for the period ended 30 June 2025 is 5.7 per cent (H1 2024: (1.6) per cent). The corporation tax charge for the period includes the benefit of a reduction in the deferred tax liability held at December 2024. The underlying tax charge for the period before this adjustment was £4.2 million, giving an underlying effective tax rate of 14.2 per cent. This is primarily due to timing differences on taxation of management fee income and the tax treatment of certain other forms of income.
Factors affecting taxation charge for the period
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Profit before taxation |
29,616 |
23,190 |
|
Profit before taxation multiplied by the blended rate of |
7,404 |
5,798 |
|
Effects of: |
|
|
|
Dividends not chargeable to |
- |
(92) |
|
Non-taxable and non-deductible items |
(3,292) |
(484) |
|
Origination and reversal of timing differences |
(2,605) |
(3,975) |
|
Recognition of previously unrecognised losses |
- |
(1,521) |
|
Group relief surrendered |
- |
66 |
|
Changes in tax rate for deferred tax |
(49) |
(76) |
|
Prior year adjustment |
231 |
(97) |
|
Total tax charge / (credit) |
1,689 |
(381) |
The following table shows the deferred tax asset and liability for the period:
|
|
For the period ended 30 June 2025 |
For the year ended 31 December 2024 |
||||
|
Group |
Deferred tax asset £'000 |
Deferred tax liability £'000 |
Total £'000 |
Deferred tax asset £'000 |
Deferred tax liability £'000 |
Total £'000 |
|
Opening balance |
3,256 |
(8,866) |
(5,610) |
- |
(3,093) |
(3,093) |
|
(Charge) / credit to profit or loss |
(1,066) |
3,230 |
2,164 |
3,256 |
(5,531) |
(2,275) |
|
Prior year adjustment |
- |
- |
- |
- |
(242) |
(242) |
|
Closing balance |
2,190 |
(5,636) |
(3,446) |
3,256 |
(8,866) |
(5,610) |
The deferred tax asset in respect of short-term timing differences and carried forward losses of £8.8 million is expected to crystallise fully in 2025. The deferred tax liability in respect of the recognition of fair value gains within the Investment Company and carried interest in the Asset Manager will crystallise as the realised gain from these begins to flow to the Group in the medium term.
6. Earnings per share
The following table shows the Group's earnings per share for the period ended 30 June 2025:
|
Group |
For the period ended 30 June 2025 |
For the period ended 30 June 2024 |
|
Profit after tax (£'000) |
27,927 |
23,571 |
|
Average number of shares ('000) |
60,649 |
63,909 |
|
Earnings per ordinary share |
46.0 pence |
36.9 pence |
7. Credit Assets at amortised cost
a) Credit Assets at amortised cost
The allowance for ECL movement during the period was a release of £0.8 million (H1 2024: charge £1.1 million).
The following table presents the gross carrying value of financial instruments to which the impairment requirements in IFRS 9 are applied and the associated allowance for ECL provision:
|
Group |
As at 30 June 2025 |
As at 31 December 2024 |
||||
|
|
Gross Carrying Amount £'000 |
Allowance for ECL £'000 |
Net Carrying Amount £'000 |
Gross Carrying Amount £'000 |
Allowance for ECL £'000 |
Net Carrying Amount £'000 |
|
Credit Assets at amortised cost |
|
|
|
|
|
|
|
Stage 1 |
288,736 |
(284) |
288,452 |
283,226 |
(596) |
282,630 |
|
Stage 2 |
13,767 |
(322) |
13,445 |
15,785 |
(368) |
15,417 |
|
Stage 3 |
18,676 |
(7,536) |
11,140 |
19,316 |
(7,940) |
11,376 |
|
Closing balance |
321,179 |
(8,142) |
313,037 |
318,327 |
(8,904) |
309,423 |
The following table analyses ECL by staging for the Group:
|
|
For the period ended 30 June 2025 |
|||
|
Group |
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
As at 1 January 2025 |
596 |
368 |
7,940 |
8,904 |
|
Movement from stage 1 to stage 2 |
- |
69 |
- |
69 |
|
Movement from stage 1 to stage 3 |
- |
- |
25 |
25 |
|
Movement from stage 2 to stage 1 |
- |
(30) |
- |
(30) |
|
Movement from stage 2 to stage 3 |
- |
(106) |
179 |
73 |
|
Movement from stage 3 to stage 1 |
- |
- |
(70) |
(70) |
|
Movement from stage 3 to stage 2 |
- |
22 |
(76) |
(54) |
|
Movements within stage |
(8) |
3 |
(241) |
(246) |
|
Decreases due to repayments |
(241) |
(13) |
(209) |
(463) |
|
Remeasurements due to modelling |
(63) |
9 |
(12) |
(66) |
|
Allowance for ECL as at 30 June 2025 |
284 |
322 |
7,536 |
8,142 |
|
|
For the year ended 31 December 2024 |
|||
|
Group |
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
As at 1 January 2024 |
693 |
576 |
7,042 |
8,311 |
|
Movement from stage 1 to stage 2 |
(2) |
90 |
- |
88 |
|
Movement from stage 1 to stage 3 |
(1) |
- |
280 |
279 |
|
Movement from stage 2 to stage 1 |
- |
(75) |
- |
(75) |
|
Movement from stage 2 to stage 3 |
- |
(101) |
173 |
72 |
|
Movement from stage 3 to stage 1 |
- |
- |
(104) |
(104) |
|
Movement from stage 3 to stage 2 |
- |
15 |
(66) |
(51) |
|
Movements within stage |
(12) |
(3) |
752 |
737 |
|
Decreases due to repayments |
(241) |
(38) |
(234) |
(513) |
|
Remeasurements due to modelling |
159 |
(96) |
97 |
160 |
|
Allowance for ECL as at 31 December 2024 |
596 |
368 |
7,940 |
8,904 |
b) Expected Credit Loss allowance for IFRS 9
Under the IFRS 9 expected credit loss model, impairment provisions are driven by changes in credit risk of instruments, with a provision for lifetime expected credit losses recognised where the risk of default of an instrument has increased significantly since initial recognition.
The following table analyses Group loans by stage:
|
Group |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
As at 1 January |
8,904 |
8,311 |
|
Release for period - Stage 1 |
(312) |
(97) |
|
Release for period - Stage 2 |
(46) |
(208) |
|
(Release) / charge for period - Stage 3 |
(404) |
898 |
|
(Release) / charge for period - total[7] |
(762) |
593 |
|
Loans sold & write-offs |
- |
- |
|
Allowance for ECL |
8,142 |
8,904 |
8. Investment Assets at fair value through profit or loss
a) Investment Assets at fair value through profit or loss
The following table shows the total Investment Assets at fair value through profit or loss of the Group, which includes Equity Assets and Credit Assets:
|
|
For the period ended 30 June 2025 |
||
|
Group |
Equity Assets £'000 |
Credit Assets £'000 |
Total £'000 |
|
Opening balance |
83,384 |
110,792 |
194,176 |
|
Additions at cost |
3,614 |
15,468 |
19,082 |
|
Realisations |
- |
(14,657) |
(14,657) |
|
Unrealised gains through profit or loss |
3,385 |
(8,033) |
(4,648) |
|
Realised gains through profit or loss |
- |
14,657 |
14,657 |
|
Foreign exchange revaluation |
- |
(1,313) |
(1,313) |
|
Closing balance |
90,383 |
116,914 |
207,297 |
|
Comprising: |
|
|
|
|
Valued using net asset value |
50,915 |
89,514 |
140,429 |
|
Valued using an earnings multiple |
15,385 |
- |
15,385 |
|
Valued using a discounted cash flow |
1,360 |
27,400 |
28,760 |
|
Valued using a liquidity discount |
22,723 |
- |
22,723 |
|
Closing balance |
90,383 |
116,914 |
207,297 |
|
|
For the year ended 31 December 2024 |
||
|
Group |
Equity Assets £'000 |
Credit Assets £'000 |
Total £'000 |
|
Opening balance |
26,839 |
61,381 |
88,220 |
|
Additions at cost |
45,172 |
49,812 |
94,984 |
|
Realisations |
(168) |
(8,021) |
(8,189) |
|
Unrealised gains through profit or loss |
11,541 |
1,330 |
12,871 |
|
Realised gains through profit or loss |
- |
5,813 |
5,813 |
|
Foreign exchange revaluation |
- |
477 |
477 |
|
Closing balance |
83,384 |
110,792 |
194,176 |
|
Comprising: |
|
|
|
|
Valued using net asset value |
43,916 |
85,115 |
129,031 |
|
Valued using an earnings multiple |
15,385 |
- |
15,385 |
|
Valued using a discounted cash flow |
1,360 |
25,677 |
27,037 |
|
Valued using a liquidity discount |
22,723 |
- |
22,723 |
|
Closing balance |
83,384 |
110,792 |
194,176 |
b) Fair value classification of total Investment Assets
The Group Investment Assets at fair value through profit or loss are classified as level 3 assets with a value as at 30 June 2025 of £207.3 million (31 December 2024: £194.2 million). There were no movements for the Group (31 December 2024: no movements) between the fair value hierarchies during the year.
c) Sensitivity analysis of assets at fair value through profit or loss
The investments are in Equity Assets, Private Equity Funds and Private Credit Funds, which are valued using different techniques, including net asset value ("NAV"), earnings multiple, discounted cash flows ("DCF"), recent transactions and a market approach. Sensitivity to the quantitative information regarding the unobservable inputs for the Group's Level 3 positions as at 30 June 2025 and 31 December 2024 is given below:
|
Valuation technique |
Sensitivity applied |
As at 30 June 2025 £'000 Impact of sensitivity |
As at 31 December 2024 £'000 Impact of sensitivity |
|
Net asset value |
NAV changed by 10% |
14,043 |
12,903 |
|
Earnings multiple |
Earnings multiple changed by 1x |
1,296 |
1,296 |
|
Discounted cash flow |
Cash flows changed by 10% |
2,876 |
2,704 |
|
Liquidity discount |
Discount changed by 10% |
2,840 |
2,840 |
d) Assets and liabilities not carried at fair value but for which fair value is disclosed
For the Group as at 30 June 2025:
|
|
As Presented |
Fair Value |
|||
|
Group |
£'000 |
Level 1 £'000 |
Level 2 £'000 |
Level 3 £'000 |
Total £'000 |
|
Assets |
|
|
|
|
|
|
Credit Assets at amortised cost |
313,037 |
- |
- |
347,045 |
347,045 |
|
Carried interest receivable |
1,365 |
- |
- |
1,365 |
1,365 |
|
Trade and other receivables |
38,875 |
- |
38,875 |
- |
38,875 |
|
Cash and cash equivalents |
6,724 |
6,724 |
- |
- |
6,724 |
|
Total assets |
360,001 |
6,724 |
38,875 |
348,410 |
394,009 |
|
Liabilities |
|
|
|
|
|
|
Trade and other payables |
(24,794) |
- |
(24,794) |
- |
(24,794) |
|
Interest-bearing liabilities |
(206,284) |
- |
(206,284) |
- |
(206,284) |
|
Total liabilities |
(231,078) |
- |
(231,078) |
- |
(231,078) |
For the Group as at 31 December 2024:
|
|
Carrying Value |
Fair Value |
|||
|
Group |
£'000 |
Level 1 £'000 |
Level 2 £'000 |
Level 3 £'000 |
Total £'000 |
|
Assets |
|
|
|
|
|
|
Credit Assets at amortised cost |
309,423 |
- |
- |
317,629 |
317,629 |
|
Carried interest receivable |
1,365 |
- |
- |
1,365 |
1,365 |
|
Trade and other receivables |
35,542 |
- |
35,542 |
- |
35,542 |
|
Cash and cash equivalents |
11,195 |
11,195 |
- |
- |
11,195 |
|
Total assets |
357,525 |
11,195 |
35,542 |
318,994 |
365,731 |
|
Liabilities |
|
|
|
|
|
|
Trade and other payables |
(29,249) |
- |
(29,249) |
- |
(29,249) |
|
Interest-bearing liabilities |
(188,265) |
- |
(188,265) |
- |
(188,265) |
|
Total liabilities |
(217,514) |
- |
(217,514) |
- |
(217,514) |
Note 7 provides further details of the loans at amortised cost held by the Group.
The fair value of the receivable and payable balances approximates their carrying amounts due to the short-term nature of the balances.
9. Leases
The Group leases include office premises where the Group is a tenant which include fixed periodic rental payments over the fixed lease terms of no more than five years remaining from the reporting date. The total cash outflow during the period in relation to leases was £0.8 million (H1 2024: £0.7 million).
The following table shows the carrying amounts of lease assets recognised and the movements during the period:
|
Group - Lease assets |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
Cost |
|
|
|
Opening balance |
7,367 |
4,873 |
|
Additions |
192 |
- |
|
Remeasurement due to lease modification |
- |
2,494 |
|
Closing balance |
7,559 |
7,367 |
|
Accumulated depreciation |
|
|
|
Opening balance |
(2,507) |
(1,056) |
|
Depreciation expense |
(751) |
(1,451) |
|
Closing balance |
(3,258) |
(2,507) |
|
Net book value |
4,301 |
4,860 |
The following table shows the carrying amounts of lease liabilities and the movements during the period:
|
Group - Lease liabilities |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
Opening balance |
5,132 |
4,152 |
|
Remeasurement due to lease modification |
- |
2,309 |
|
Additions |
193 |
- |
|
Accretion of interest |
100 |
235 |
|
Payments |
(811) |
(1,564) |
|
Closing balance |
4,614 |
5,132 |
The following table below shows the lease liabilities by maturity:
|
Group - Lease liabilities |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
Current |
1,516 |
1,376 |
|
Non-current |
3,098 |
3,756 |
|
Closing balance |
4,614 |
5,132 |
The following table shows the amounts recognised in the Condensed Consolidated Statement of Comprehensive Income:
|
Group - Amounts recognised in profit or loss |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Depreciation expense |
751 |
422 |
|
Finance costs - Lease liability interest |
100 |
95 |
|
Total |
851 |
517 |
10. Goodwill and intangible assets
The following tables show the goodwill and intangible assets held by the Group for their respective periods:
|
Group |
For the period ended 30 June 2025 |
For the year ended 31 December 2024 |
||||
|
|
£'000 |
Intangibles £'000 |
Total £'000 |
£'000 |
Intangibles £'000 |
Total £'000 |
|
Cost |
|
|
|
|
|
|
|
Opening balance |
224,540 |
4,000 |
228,540 |
224,540 |
4,000 |
228,540 |
|
Closing balance |
224,540 |
4,000 |
228,540 |
224,540 |
4,000 |
228,540 |
|
Amortisation |
|
|
|
|
|
|
|
Opening balance |
- |
(1,440) |
(1,440) |
- |
(800) |
(800) |
|
Amortisation |
- |
(320) |
(320) |
- |
(640) |
(640) |
|
Closing balance |
- |
(1,760) |
(1,760) |
- |
(1,440) |
(1,440) |
|
Net book value |
224,540 |
2,240 |
226,780 |
224,540 |
2,560 |
227,100 |
In accordance with IAS 36 Impairment of Assets, goodwill is reviewed for indicators of impairment at each reporting date. As at 30 June 2025, management has undertaken a review to assess whether any indicators of impairment exist in respect of the goodwill recognised. No indicators of impairment have been identified during the period. Management has therefore concluded that no impairment testing is required as at the interim reporting date.
The key assumptions, methodologies, and valuation models used in the impairment assessment performed for the year ended 31 December 2024 remain unchanged. There have been no significant changes in the cash flow forecasts, discount rate, or other key inputs that would give rise to a revision in the carrying value of goodwill.
Management continues to monitor relevant internal and external factors and remains satisfied that there is appropriate headroom in the value in use model to support the carrying amount of goodwill.
Intangible assets
The intangible assets arose as part of the acquisition and represents existing customer relationships of PSCHL. The intangible assets have a finite life, which is estimated to be up to the end of 2028, and so the intangibles are amortised on a straight-line basis up to the end of 2028 and are included in Administration costs in the Condensed Consolidated Statement of Comprehensive Income.
11. Carried interest assets
The following table shows the total value of the carried interest held by the Group, which includes both the carried interest at fair value through profit or loss and the carried interest receivable:
|
Group |
As at 30 June 2025 £'000 |
As at 31 December 2024 £'000 |
|
Carried interest at fair value |
24,938 |
23,708 |
|
Carried interest receivable |
1,365 |
1,365 |
|
Closing balance |
26,303 |
25,073 |
Carried interest assets at fair value through profit or loss
a) Movements during the period
|
Group |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
Opening balance |
23,708 |
15,967 |
|
Net changes in fair value movement |
1,547 |
7,741 |
|
Realised proceeds |
(317) |
- |
|
Closing balance |
24,938 |
23,708 |
Gains through profit or loss are presented in the 'Carried interest and performance fee income' line on the Condensed Consolidated Statement of Comprehensive Income.
b) Fair value classification of carried interest at fair value through profit or loss
Carried Interest at fair value through profit or loss is classified as a level 3 asset with a value as at 30 June 2025 of £24.9 million (31 December 2024: £23.7 million). There were no movements between the fair value hierarchies during the period (H1 2024: no movements).
c) Sensitivity analysis of carried interest at fair value through profit or loss
The following table shows the sensitivity impact on the inputs applied to the carried interest assets at fair value. The sensitivity parameters are considered reasonable movements in the input assumptions:
|
|
|
As at 30 June 2025 |
As at 31 December 2024 |
||
|
Valuation Parameter |
Sensitivity applied |
Increase £'000 |
Decrease £'000 |
Increase £'000 |
Decrease £'000 |
|
Fund NAV |
+/- 10% |
5,116 |
(3,679) |
5,874 |
(4,886) |
|
Liquidity discount |
+/- 10% |
(2,395) |
2,395 |
- |
- |
|
Option volatility |
+/- 10% |
2,357 |
(2,235) |
1,696 |
(504) |
|
Option time to maturity |
+/- 1 Year |
2,189 |
(2,628) |
2,086 |
(1,819) |
|
Option risk free rate |
+/- 1% |
510 |
(501) |
829 |
(384) |
Carried interest receivable
d) Movements during the period
|
Group |
As at 30 June 2025 £'000 |
As at 31 December 2024 £'000 |
|
Opening balance |
1,365 |
1,365 |
|
Carried interest income recognised in the profit or loss |
- |
- |
|
Closing balance |
1,365 |
1,365 |
12. Trade and other receivables
The following table shows a breakdown of the Group's receivables:
|
Group |
As at 30 June 2025 £'000 |
As at 31 December 2024 £'000 |
|
Management and performance fees |
19,069 |
17,762 |
|
Amounts due from debtors |
49 |
50 |
|
Prepayments and other receivables |
19,757 |
17,730 |
|
Closing balance |
38,875 |
35,542 |
13. Derivative financial assets & liabilities
The following table presents the movement in the undiscounted notional values of the foreign exchange forward contracts for the Group:
|
|
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
||
|
Group |
EUR |
USD |
EUR |
USD |
|
Opening notional balance |
28,772 |
43,522 |
42,987 |
19,360 |
|
Movement in notional value |
5,201 |
946 |
(14,215) |
24,162 |
|
Closing notional balance |
33,973 |
44,468 |
28,772 |
43,522 |
The following table presents the mark to market of the foreign exchange forward contracts as at the end of the period for the Group:
|
|
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|||||
|
Group |
EUR |
USD |
Total |
EUR |
USD |
Total |
|
|
Opening balance |
28 |
(1,495) |
(1,467) |
(191) |
12 |
(179) |
|
|
Fair value movement |
(453) |
2,783 |
2,330 |
219 |
(1,507) |
(1,288) |
|
|
Closing balance |
(425) |
1,288 |
863 |
28 |
(1,495) |
(1,467) |
|
Fair value classification of derivatives
The Group derivatives are classified as level 2 in the fair value hierarchy with a GBP equivalent value of £0.9 million (30 June 2024: £1.5 million liability). There were no movements between the fair value hierarchies during the period. The derivatives are valued using market forward rates and are contracts with a third party and so they are not traded on an exchange.
14. Interest-bearing borrowings
The following table sets out a breakdown of the Group's interest-bearing borrowings:
|
Group |
As at 30 June 2025 £'000 |
As at 31 December 2024 £'000 |
|
Current liabilities |
|
|
|
Interest and commitment fees |
262 |
218 |
|
Prepaid interest and commitment fees |
- |
280 |
|
Total current liabilities |
262 |
498 |
|
Non-current liabilities |
|
|
|
Credit facility |
208,090 |
190,500 |
|
Prepaid interest and commitment fees |
(2,068) |
(2,733) |
|
Total non-current liabilities |
206,022 |
187,767 |
|
Total interest-bearing borrowings |
206,284 |
188,265 |
The following table shows the related debt costs incurred by the Group during the period:
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Interest and commitment fees |
8,195 |
8,951 |
|
Other finance charges |
100 |
94 |
|
Total finance costs |
8,295 |
9,045 |
The following table shows the movements in the Group's interest-bearing borrowings:
|
Group |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
Opening balance |
188,265 |
210,764 |
|
Drawdowns of interest-bearing borrowings |
64,205 |
240,500 |
|
Repayments of interest-bearing borrowing |
(47,000) |
(260,519) |
|
Origination and legal fees |
385 |
(2,880) |
|
Finance costs |
8,195 |
16,351 |
|
Interest paid on financing activities |
(7,766) |
(15,951) |
|
Closing balance |
206,284 |
188,265 |
The following table analyses the Group's financial liabilities into relevant maturity groupings:
|
|
As at 30 June 2025 |
|||
|
Group |
<1 year £'000 |
1 - 5 years £'000 |
More than 5 years £'000 |
Total £'000 |
|
Credit facility |
- |
206,022 |
- |
206,022 |
|
Interest and commitment fees payable |
262 |
- |
- |
262 |
|
Total exposure |
262 |
206,022 |
- |
206,284 |
|
|
As at 31 December 2024 |
|||
|
Group |
<1 year £'000 |
1 - 5 years £'000 |
More than 5 years £'000 |
Total £'000 |
|
Credit facility |
- |
187,767 |
- |
187,767 |
|
Interest and commitment fees payable |
498 |
- |
- |
498 |
|
Total exposure |
498 |
187,767 |
- |
188,265 |
15. Trade and other payables
The following table shows a breakdown of the Group's payables:
|
Group |
As at 30 June 2025 £'000 |
As at 31 December 2024 £'000 |
|
Staff salaries and bonuses |
10,344 |
16,282 |
|
Audit fee accruals |
477 |
953 |
|
Deferred income and other payables |
13,973 |
12,014 |
|
Closing balance |
24,794 |
29,249 |
16. Equity
a) Share capital and premium
The following table shows the movement in shares during the period:
|
|
For the period ended 30 June 2025 |
For the year ended 31 December 2024 |
||
|
No. Issued, allocated and fully paid ordinary shares of £0.01 each |
Ordinary shares |
|
Ordinary shares |
|
|
Opening number of shares |
60,987,340 |
3,222,257 |
64,209,597 |
- |
|
Number of shares bought back |
(798,844) |
798,844 |
(3,222,257) |
3,222,257 |
|
Closing number of shares |
60,188,496 |
4,021,101 |
60,987,340 |
3,222,257 |
b) Other reserves
As at 30 June 2025, the Group had a retained earnings reserve balance of £40.6 million (31 December 2024: £29.2 million).
The Foreign Currency Translation Reserve reflects the foreign exchange differences arising on translation that are recognised in the Condensed Consolidated Statement of Comprehensive Income.
17. Dividends
The following table shows the dividends in relation to or paid during the period ended 30 June 2025 and year ended 31 December 2024.
|
|
Payment Date |
Amount per Share (pence) |
Total £'000 |
|
Interim dividend for the period to 31 December 2023 |
1 March 2024 |
13.0p |
8,347 |
|
Interim dividend for the period to 30 June 2024 |
11 October 2024 |
26.5p |
16,522 |
|
Second interim dividend for the period to 31 December 2024 |
2 May 2025 |
27.1p |
16,528 |
|
Interim dividend for the period to 30 June 2025 |
24 October 2025 |
27.0p |
16,251 |
The 30 June 2025 interim dividend of 27.0 pence was approved on 15 September 2025 and will be paid on 24 October 2025.
The following table show the total dividends declared and the total dividends paid:
|
|
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Total dividend paid in period |
16,528 |
8,347 |
|
Total dividend in relation to period |
16,251 |
16,522 |
18. Cash generated from operations
|
Group |
|
For the period ended 30 June 2025 |
For the period ended 30 June 2024 |
|
|
Notes |
£'000 |
£'000 |
|
Profit before taxation |
|
29,616 |
23,190 |
|
Adjustments for: |
|
|
|
|
(Release) / charge in expected credit loss |
7 |
(762) |
1,152 |
|
Gains on Investment Assets held at fair value |
8 |
(10,009) |
(7,502) |
|
Net interest from Credit Assets at amortised cost |
|
(1,622) |
(2,147) |
|
Finance costs |
14 |
8,295 |
9,045 |
|
Foreign exchange revaluation |
|
(1,558) |
649 |
|
Gains in carried interest |
11 |
(1,546) |
(3,791) |
|
Depreciation of fixed assets |
|
169 |
133 |
|
Depreciation of lease assets |
9 |
751 |
422 |
|
Amortisation of intangible assets |
10 |
320 |
320 |
|
Increase in receivables |
12 |
(3,333) |
(5,186) |
|
Decrease in payables |
15 |
(4,455) |
(13,106) |
|
Decrease in derivatives |
13 |
(2,330) |
(244) |
|
Cash generated from operations |
|
13,536 |
2,935 |
19. Subsequent events
On 15 September 2024 a dividend of 27.0 pence per ordinary share was approved for payment on 24 October 2025.
11. Shareholders' Information
12. Directors, Advisers and Service Providers
|
Directors |
Financial Advisers and Brokers |
|
|
Barclays Bank plc |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investec Bank plc |
|
all at the registered office below |
30 |
|
|
|
|
Registered Office |
|
|
|
|
|
Bulwer Avenue |
Registrar |
|
|
|
|
|
The Pavilions, Bridgewater Road |
|
|
|
|
Company Secretary |
|
|
MUFG Corporate Governance Limited |
Website |
|
19th Floor |
|
|
51 Lime Street |
|
|
|
Share Identifiers |
|
EC3M 7DQ |
ISIN: GG00BMHG0H12 |
|
|
Sedol: BMHG0H1 |
|
Independent Auditors |
Ticker: POLN |
|
|
|
|
7 More London Riverside |
|
|
|
|
Website
The Company's website can be found at www.pollenstreetgroup.com. The site provides visitors with Company information and literature downloads.
The Company's profile is also available on third-party sites such as www.trustnet.com and www.morningstar.co.uk.
Share prices and Net Asset Value information
The Company's ordinary shares of 1p each are quoted on the London Stock Exchange:
· SEDOL number: BMHG0H1
· ISIN number: GG00BMHG0H12
· EPIC code: POLN
The codes above may be required to access trading information relating to the Company on the internet.
Annual and half-yearly reports
The Group's Consolidated Annual Report & audited financial statements, half-yearly reports and other formal communications are available on the Company's website. To reduce costs the Company's half-yearly financial statements are not posted to shareholders but are instead made available on the Company's website.
Whistleblowing
The Company has established a whistleblowing policy. The Audit Committee reviews the whistleblowing procedures of the Group to ensure that the concerns of their staff may be raised in a confidential manner.
Warning to shareholders - share fraud scams
Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment. While high profits are promised, if you buy or sell shares in this way, you will probably lose your money.
How to avoid share fraud
· Keep in mind that firms authorised by the FCA are unlikely to contact you out of the blue with an offer to buy or sell shares
· Do not get into a conversation, note the name of the person and firm contacting you and then end the call
· Check the Financial Services Register from www.fca.org.uk to see if the person and firm contacting you is authorised by the FCA
· Beware of fraudsters claiming to be from an authorised firm, copying its website or giving you false contact details
· Use the firm's contact details listed on the Register if you want to call it back
· Call the FCA on 0800 111 6768 if the firm does not have contact details on the Register or you are told they are out of date
· Search the list of unauthorised firms to avoid at www.fca.org.uk/scams
· Consider that if you buy or sell shares from an unauthorised firm you will not have access to the
· Think about getting independent financial and professional advice before you hand over any money
· Remember: if it sounds too good to be true, it probably is!
5,000 people contact the Financial Conduct Authority about share fraud each year, with victims losing an average of £20,000.
Report a scam
If you are approached by fraudsters, please tell the FCA using the share fraud reporting form at fca.org.uk /scams, where you can find out more about investment scams.
You can also call the FCA Consumer Helpline on 0800 111 6768.
If you have already paid money to share fraudsters, you should contact Action Fraud on 0300 123 2040.
13. Definitions and Reconciliation to Alternative Performance Measures
14. Definitions
|
Asset-Based Lending |
Collateralised financing where loans are secured by a company's assets with credit limits determined by the assets' liquidation value. |
|
Asset Manager |
The business segment of the Group that is responsible for managing third-party AuM and the Investment Company's assets. All activities of this segment reside in Pollen Street Capital Holdings Limited and its subsidiaries. |
|
AuM |
The assets under management of the Group, defined as: · investor commitments for active Private Equity funds; · invested cost for other Private Equity funds; · the total assets for the Investment Company; and investor commitments for Private Credit funds. |
|
Average Fee-Paying AuM |
The fee-paying asset under management of the Group, defined as: · investor commitments for active fee-paying Private Equity funds; · invested cost for other fee-paying Private Equity funds; · the total assets for the Investment Company; and · net invested amount for fee-paying Private Credit funds. The average is calculated using the opening and closing balances for the period. |
|
Average Number of Shares |
Average number of closing daily ordinary shares, excluding treasury shares. |
|
Co-investment |
A direct investment made alongside or in a Fund taking a pro-rata share of all instruments. |
|
Combination |
The acquisition of 100 per cent of the share capital of Pollen Street Capital Holdings Limited by Pollen Street Limited (formerly Honeycomb Investment Trust Plc) with newly issued shares in Pollen Street Limited as the consideration that completed on 30 September 2022. |
|
Credit Assets |
Loans made by the Group to counterparties, together with investments in Private Credit funds managed or advised by the Group. |
|
Equity Assets |
Instruments that have equity-like returns; that is, instruments that do not contain a contractual obligation to pay and that evidence a residual interest in the issuer's net assets. Examples include ordinary shares or investments in Private Equity funds managed or advised by the Group. Carried interest receivable by the Group is not classified as an Equity Asset. |
|
Fair Value |
The amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. |
|
Fee-Paying AuM |
The fee-paying asset under management of the Group, defined as: · investor commitments for active fee-paying Private Equity funds; · invested cost for other fee-paying Private Equity funds; · the total assets for the Investment Company; and · net invested amount for fee-paying Private Credit funds. |
|
Fund Management EBITDA |
Fund Management Income less Fund Management Administration Costs. |
|
Fund Management Income |
The income of the Group's Asset Manager according to IFRS reporting standards. |
|
Fund Management EBITDA Margin |
The ratio of the Fund Management Adjusted EBITDA and the Fund Management Income, expressed as a percentage. |
|
Group |
|
|
IFRS |
International Financial Reporting Standards as adopted by the |
|
Internal Rate of Return |
The discount rate that makes the net present value of all cash flows from a particular investment equal to zero, effectively indicating the annualised rate of return that the investment is expected to generate. |
|
Investment Asset |
The Group's portfolio of Equity Assets and Credit Assets. |
|
Investment Company |
The business segment of the Group that holds the Investment Asset portfolio and the debt facilities. The activities of this segment predominately reside within Pollen Street Limited, Pollen Street Investments Limited, |
|
Management |
The ratio of the Fund Management Income attributable to management fees and the Average Fee-Paying AuM, annualised and expressed as a percentage. |
|
Multiple on Invested Capital |
The return on an investment by comparing the total value realised to the initial capital invested, indicating how many times the original investment has been multiplied. |
|
Net Investment Assets |
The Investment Assets plus surplus cash, net of debt. |
|
Performance Fees |
Share of profits that the Asset Manager is due once it has returned the cost of investment and agreed preferred return to investors. |
|
Performance |
The ratio of the Fund Management Income attributable to carried interest and performance fees and the total Fund Management Income, expressed as a percentage. |
|
Private Credit |
The Group's strategy for managing Credit Assets within its private funds. |
|
Private Equity |
The Group's strategy for managing Equity Assets within its private funds. |
|
Registrar |
An entity that manages the Company's shareholder register. The Company's registrar is |
|
Reorganisation |
The reorganisation that was affected on 14 February 2024, to distribute the entire issued share capital of Pollen Street Capital Holdings Limited from Pollen Street Limited to the Company referred to as the Distribution. The Scheme and the Distribution are together referred to as the "Reorganisation". |
|
Reported Net Investment Return |
The ratio of the income from Investment Company to the Net Investment Assets, expressed as an annualised ratio. |
|
The Scheme |
The scheme of arrangement that was affected on 24 January 2024, to change the listing category of Pollen Street Limited's shares to that of a commercial company from an investment company and to introduce the Company as a |
|
SMA |
Separately Managed Accounts |
|
Sterling Overnight Interbank Average Rate ("SONIA") |
The effective overnight interest rate paid by banks for unsecured transactions in the British sterling market. |
|
Structured Loan |
Credit Asset whereby the Group typically has senior secured loans to speciality finance companies, with security on the assets originated by the speciality finance company and first loss protection deriving from the speciality finance company's equity. Corporate guarantees are also typically taken. |
|
Underlying Net Investment Return |
The annualised ratio of gross income on Investment Assets, adjusted to exclude equalisation effects and other non-recurring items, to Net Investment Assets. |
15. Reconciliation to Alternative Performance Measures
The alternative performance measures are used to improve the comparability of information between reporting periods, either by adjusting for uncontrollable or one-off factors that impact upon IFRS measures or, by aggregating measures, to aid the user to understand the activity taking place. Alternative performance measures are not considered to be a substitute for IFRS measures but provide additional insight on the performance of the business.
Management fee rate
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Management fee income for the Asset Manager |
37,939 |
21,180 |
|
Average Fee-Paying AuM |
4,312,085 |
3,369,152 |
|
Management fee rate |
1.76% |
1.26% |
The Management
Performance fee rate
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Carried interest & performance fee income for the Asset Manager |
3,424 |
5,575 |
|
Fund Management Income for the Asset Manager |
41,363 |
26,755 |
|
Performance fee rate |
8% |
21% |
The Performance
Fund Management EBITDA & Fund Management EBITDA Margin
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Operating profit of the Asset Manager |
17,667 |
8,350 |
|
Fund Management EBITDA[8] |
17,667 |
8,350 |
|
Fund Management Income for the Asset Manager |
41,363 |
26,755 |
|
Fund Management EBITDA Margin |
43% |
31% |
The Fund Management EBITDA is equal to the statutory operating profit of the Asset Manager. The Fund Management EBITDA Margin is calculated by dividing the Fund Management EBITDA by the Fund Management Income.
EBITDA
|
Group |
For the period ended 30 June 2025 £'000 |
For the period ended 30 June 2024 £'000 |
|
Operating profit of the Asset Manager |
17,667 |
8,350 |
|
Operating Profit of the Investment Company |
13,314 |
15,838 |
|
EBITDA |
30,981 |
24,188 |
The Fund Management EBITDA is equal to the statutory operating profit of the Asset Manager. EBITDA of the Group is calculated as the sum of the Fund Management EBITDA and the Operating Profit of the Investment Company.
Dividends per share
|
Group |
For the period ended 30 June 2025 £ pence |
For the period ended 30 June 2024 £ pence |
|
Interim dividend |
27.0 |
26.5 |
|
Dividend per share (pence) |
27.0 |
26.5 |
Reported and Underlying Net Investment Return
|
Group |
For the period ended 30 June 2025 |
For the period ended 30 June 2024 |
|
Investment Assets (£'m) |
520 |
430 |
|
Average Net Investment Assets (£'m) |
319 |
329 |
|
Income on Net Investment Assets (£'m) |
13.3 |
15.8 |
|
Reported Net Investment Return (%) |
8.4% |
9.7% |
|
Add back: Equalisation Impact (£'m) |
0.8 |
0.2 |
|
Underlying Income on Net Investment Assets (£'m) |
14.1 |
16.0 |
|
Underlying Net Investment Return (%) |
8.8% |
9.7% |
Tangible Net Asset Value, Debt-to-Tangible Equity Ratio & Net Debt-to-Tangible Equity Ratio
|
Group |
For the period ended 30 June 2025 £'000 |
For the year ended 31 December 2024 £'000 |
|
Net asset value |
584,015 |
579,356 |
|
|
(226,780) |
(227,100) |
|
Tangible net asset value |
357,235 |
352,256 |
|
Interest-bearing borrowings |
206,284 |
188,265 |
|
Debt-to-tangible equity ratio |
57.7% |
53.4% |
|
Cash and cash equivalents |
6,724 |
11,195 |
|
Net debt-to-tangible equity ratio |
55.9% |
50.3% |
The debt-to-tangible equity ratio is calculated as the Group's interest-bearing debt divided by the tangible net asset value, expressed as a percentage. The net debt-to-tangible equity ratio is calculated as the Group's interest-bearing debt less cash and cash equivalents, divided by the tangible net asset value expressed, as a percentage.
[1] Percentage movements are calculated using the underlying unrounded figures; consequently, they may differ slightly from percentage movements derived from the rounded amounts presented
[2] Investors in PE coming in after the first close pay management fees going back to the date of the first close. The out of period element of these are classified as catch-up fees (ie for H1 2025, fees relating to January 2025). No further catch-up fees are expected in Private Equity Fund V given the final close of the fund in July 2025.
[3] Equalisation is the process by which gains are reallocated between investors to treat all investors as if they had come in at the first close of the fund.
[4] Percentage movements are calculated using the underlying unrounded figures; consequently, they may differ slightly from percentage movements derived from the rounded amounts presented.
[5] The 'Gains on Investment Assets held at fair value' includes £277k from unrealised foreign exchange gains and realised & unrealised derivative gains, which are not included in Note 8.
[6] The 'Gains on Investment Assets held at fair value' includes £29k from unrealised foreign exchange gains and realised & unrealised derivative gains, which are not included in Note 8.
[7] The prior period comparative is for the year ended 31 December 2024, the equivalent charge for the six month period ended 30 June 2024 was £1,152k.
[8] In previous reporting periods, including the interim financial statements for the six months ended 30 June 2024, Fund Management EBITDA was adjusted to include the full cost of the office lease, which is accounted for as depreciation of a lease asset and financing cost under IFRS 16. For H1 2025 and moving forward, Fund Management EBITDA has not been adjusted for the cost of the office lease. The reported Fund Management EBITDA therefore now follows the accounting, with the office lease costs being charged below EBITDA.. The prior year comparatives have been updated to reflect this change in methodology resulting in a £0.4 million increase in the comparative Fund Management EBITDA compared to the interim financial statements for the six months ended 30 June 2024.
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