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Research Tree provides access to ongoing research coverage, media content and regulatory news on GROUPE BRUXELLES LAMBERT SA. We currently have 2 research reports from 1 professional analysts.
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GROUPE BRUXELLES LAMBERT SA
GROUPE BRUXELLES LAMBERT SA
Portfolio rotation successfully completed
15 Jul 16
During 2015 and the first months of 2016, the rotation of GBL’s portfolio was accelerated, with the aim to have greater geographic and sector diversification, in line with the strategy initiated since 2012 under the direction of the new managing directors, Ian Gallienne and Gérard Lamarche (see our Latest 19/03/2012 and the following ones). The strategy presented in 2014 (see our Latest dated 25/08/2014) was aimed at creating value in three core segments: Strategic investments (minority interests in large listed companies), Incubator investments (minority or majority stakes in small and medium companies with strong growth prospects) and Financial investments (through private equity and funds, mostly owned by the subsidiary Sienna Capital). It was also announced that the allocation of the investments had to reach the targets of respectively 75%-80%, 10-15% and 10% of the global value of GBL’s portfolio. At the end of 2015, the allocation disclosed the following break-down: 83% for the Strategic participations, 12% for the Incubator investments and 5% for the financial ones. Taking into account the continuation of the investments/divestments during the first months of 2016, we consider that GBL is well on the way to succeeding in the completion of its strategic plan.
Active portfolio rotation
05 Aug 15
The H1 15 net result increased to €720m for the Group share (compared with €502m at 30/06/2014), including a loss of €13m for the consolidated operating companies and associates due to negative non-recurring items in the net result of Lafarge. GBL’s net result benefited from the dividends received on investments (€192m) and from a high amount (€480m) of income from disposals, impairments and reversal of non-current assets: 1) a net capital gain made on the sale of 0.1% of Total’s capital (€42m); 2) the net income recorded on the conversion of bonds exchangeable into Suez Environnement shares (€21m); 3) the mark-to-market of the forward sales of Total (€38m), which will occur in Q4 15; 4) the mark-to-market of the derivatives components embedded in exchangeable convertible bonds (€66m); and 5) the partial reversal of the previously recorded impairment with regards to Lafarge (€403m), according to IFRS 5 about non-current assets held for sale and discontinued operations, and in anticipation of the merger of Lafarge and Holcim. Cash earnings amounted to €339m (compared with €319m yoy), thanks to the increase in unit dividends from Imerys, Lafarge and SGS. The level of the 2015 expected cash earnings could allow GBL to pay an increased dividend to its shareholders. The parent company’s net debt increased from €233m at 31/12/2014 to €777m at the end of June 2015, as a consequence of the investments made (€689m) and the dividend payment (€450m). For the calculation of GBL’s NAV, we increase the net debt with the amount of the company’s commitments in respect of the Financial Pillar, which reached €402m at 30/06/2015. GBL has also confirmed credit lines (€1,750m, currently undrawn for €1,550m) which were extended until 2020.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
N+1 Singer - Grainger - Final results in line, further progress on PRS investment pipeline
01 Dec 16
Grainger has reported FY16 final results this morning with key NNNAV and recurring PBT metrics in line with our forecasts. Sales performance and rental income growth was strong in H2, as previewed in the positive FY trading update driving our 19% PBT upgrade in early October (11/10). The PRS investment pipeline continues to grow now standing at £389m secured and £347m in legals as Grainger pursues an £850m investment target by 2020. A 3.05p final dividend is in line with the revised policy to distribute 50% net rental income. The shares continue to trade on a significant, and unwarranted, 20%+ discount to NNNAV. We reiterate our BUY recommendation.
Better Capital – A tale of two funds
05 Dec 16
Our gut feel on the results is that BCAP’s Gardner disposal feels viable (albeit as a late Q1 transaction). Post Gardner, the exit profile for BCAP’s portfolio is slanted towards the years 2018/19 and not earlier; we view the market’s current pricing as cautious (14% disc to our estimate of FV). In contrast, BC12’s more consumer facing portfolio remains a work in progress and may well offer further disappointment before turning a corner; the market valuation (51% discount to NAV) is cautious but probably fair given the difficulties.
Meeting near-term headwinds
06 Dec 16
In its trading update IFG reported that performance has been in line with management expectations. The cooling effect of market uncertainty on growth in James Hay and financial advice client numbers, together with the impact of low interest rates, remain a near-term head wind for revenues. Even so, with Saunderson House continuing to increase profits, IFG expects to match 2015 earnings. The long-term growth opportunity presented by an ageing population and pension freedoms remains in place and to address this IFG is continuing investment to enhance its service and increase operational gearing.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
05 Dec 16
As we mentioned in our 18 November 2016 note, a continuation vote was expected to be announced before the end of 2016. The announcement last Friday included details of the continuation vote, and in particular, a recommendation by the Directors to replace the June 2015 strategy of selling non-core assets and developing the core projects, with a new strategy of an orderly sale of the Company’s assets, with a target of selling all assets by 31 December 2019 and a distribution policy for returning monies to shareholders following disposals. Alongside these recommendations, there are proposed changes to the remuneration for the investment manager.