Eurazeo’s H1 release was a mixed bag, given the sizeable impact of the COVID-19-driven crisis on the portfolio companies exposed to the Travel & Leisure sector. While the group’s tech-focused ‘growth’ investments have proved resilient from an operations and valuation perspective. Still, the WorldStrides’ restructuring is a major hit to Eurazeo’s earnings. The negative sentiment related to this matter (in addition to Europcar) risks weighing on the share price in the short term despite an otherwi
Companies: Eurazeo SA
Eurazeo released FY19 results that put into evidence the increasing importance of the company’s role as a manager for third-party money. The increasing dependence on this business will mean that Eurazeo’s capability to keep growing in AUM and maintaining these funds will become ever more crucial, especially in turbulent market conditions, where investors may aim to retreat from risky assets in the search for safe-havens.
Over the past few years, Eurazeo’s strategy has developed from a typical investment company into a multi-strategy private equity structure. In H1 19, the positive results from the asset management activity continues to confirm the successful shift to a strategic model that combines own equity capital and third-party management. While this move appears to be yielding results, reduced transparency remains a point of contention for minority shareholders.
Busy Q1 19 characterised by strong asset rotation. The holding company has acquired a 25% stake in a Spanish Private Equity fund and signed an agreement to create a €1bn investment fund. The (uncertain) discount to NAV stands at 16.2%.
Strong growth in the holding company’s economic revenues over 2018 but high impairment charges and non-recurrent items weigh on its profitability. Strong investment and divestment momentum during the year.
Almost all of Eurazeo’s divisions posted solid growth in their economic revenues, except for Eurazeo holdings & developments. Over 9M 18, the money manager was busy with heavy investments and divestment momentum.
Eurazeo shift gears into its new guise as a reborn money manager in non-listed equities.
Taking advantage of the presentation of the 2017 annual results, the new CEO, Virginie Morgon, used the implementation of new Eurazeo’s strategic model to explain how she intends to reorganise the group’s management and decision-making and how the modalities of the financial communication would be redefined.
The change in the reporting format with non-IFRS financial indicators and the summing by division of the financial figures related to the assets lead to the lack of information we had fear
Since 2015, Eurazeo’s strategic model has enhanced from a typical investment company into a multi-strategy private equity model, which combines own equity capital and third-party management. Nearing completion, the race for size in the managed assets was accelerated from June 2017 by the risk inherent in the raid committed by Tikehau on Eurazeo’s share capital. The fact of increasing the managed assets mainly through third-party management definitely leads to a complete lack of visibility on Eur
When Eurazeo announced that the Deputy CEO Virginie Morgon would replace the current CEO Patrick Sayer from March 2018, it was only half a surprise. With three members of the Executive Board being appointed for one year renewable, the end date of the term of their office is accordingly 2018. But Patrick Sayer is only 59 years old, he has worked for more than 15 years in the company and no specific reason has been given as to why he is replaced.
But it is true that, in the past two years, Virgin
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Agronomics is an investment company, making selective investments in early-stage alternative protein companies. We believe the combination of the conservative approach to calculating a reported net asset value (NAV) and growing interest in the broader alternative protein and cultured meat opportunities has resulted in Agronomics' shares trading at a c320% premium to its latest reported NAV per share value. Our analysis suggests that not only can this premium be justified but that upside exists b
Companies: Agronomics Limited
NextEnergy Solar’s NAV reflects a reduction in long term pricing offset by continued operating outperformance. While long term pricing remains an issue across the renewable yieldco sector, we continue to see NESF as better placed thanks to its non-amortising debt. It is also showing that its energy sales relationship with NextEnergy Capital is delivering strong hedging positions which should benefit the company going forward. On top of this the company has a range of opportunities to develop and
Companies: Nextenergy Solar Fund
NextEnergy Solar Fund’s (NESF) NAV has declined to 98.9p, as at 31 March 2021, from 100.7p as at 31 December 2020, after incorporating a further reduction in power price forecasts provided by NESF’s three independent consultants (-2.1p per share) and an expected rise in the UK corporation tax rate rising to 25% from 2023 (-1.8p per share). These were partly offset by NESF’s operating outperformance, the acquisition of the 100MW Camden portfolio which was financed by a drawdown on the existing cr
Gore Street continues to develop its portfolio with the acquisition of a 80MW project in the GB market and a 300MW expansion of its exclusive development pipeline. Extended revenue opportunity in Ireland and well optimised assets in the UK give us confidence that the company can maximise value from this larger portfolio.
Companies: Gore Street Energy Storage Fund PLC
In addition to successfully executing a high volume of transactions for clients in the first half, Numis continues to plan investment to strengthen and broaden its capabilities to support longer-term growth through market cycles. With over 60% of transaction fee income in H120 coming from outside the retained client base there is evidence that the company is succeeding in building a wider reputation.
Companies: Numis Corporation Plc
Full-year results to 31 December 2020 show the value of recurring revenues amid the global pandemic, bolstered by technology investment permitting improved operational efficiency. The flexible annuity pipeline remains significant, though the pandemic has caused slow conversion of leads. A UK-focussed acquisition pipeline continues to form a key part of the investment thesis and a post-period exit from the trusts sector has freed up capital to allow the company to pursue this strategy with the re
Companies: STM Group PLC
Today's news & views, plus announcements from CPG, DGE, FLTR, MSLH, PHP, TUI, UDG, ULE, RQIH, VTU
Companies: Primary Health Properties PLC (PHP:LON)Randall & Quilter Investment Holdings Ltd. (RQIH:LON)
Canyon Resources (CAY AU) – Minim Martap bauxite project mineral resource upgrade (Altus Strategies is invested in Canyon Resources)
Marvel Gold (MVL AU) A$0.05, Mkt Cap A$27m – Chilalo Graphite Project spin out (Altus Strategies holds a JV agreement with Marvel Gold)
Metal Tiger (MTR LN) – Drilling Commenced at KML copper project
Serabi Gold* (SRB LN) – Drilling confirms lateral and depth extensions to mineralisation at Palito
Companies: ALS SRB MTR CAY MVL
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
Companies: ADME RTC SAV DFCH HUW TEG ANIC KOO MIRI SPSY
The key messages we take from RECI’s April’s quarterly investor updateand end-March 2021 factsheet are i) mark-to-market (MTM) writedowns in March 2020 proved overly conservative, and RECI has been making recoveries since, ii) with no defaults, RECI’s assets have proved highly resilient (this is no accident, but reflects the different way in which the assets are managed to other lenders, and iii) as expected, RECI’s bond portfolio provided significant liquidity at only a modest cost. Despite the
Companies: Real Estate Credit Investments
We initiate coverage of Parsley Box with a 220p share price target, implying 14% potential upside. Parsley Box is a small, dynamic, fast-growing company that delivers quality ambient ready meals direct to its customers, targeting the growing number of older and wealthy people in the UK. We expect Parsley Box to break into EBITDA profit and be cash-generative in 2022 and to grow rapidly thereafter. We would expect the valuation discount will narrow as it continues to deliver.
Companies: Parsley Box Group PLC
Primary Health Properties (PHP) has issued a trading update covering the three months to 31 March 2021 (Q121). The existing portfolio continues to perform well, as expected, and while acquisition activity has been light amid a highly competitive investment market, progress continues with rent reviews and asset management projects, forward-funded developments and the recently acquired direct development pipeline.
Companies: Primary Health Properties PLC
Today's news & views, plus announcements from SGE, CRST, AVAP, WRKS, ASTO,ETX, MBOX
Companies: Avation PLC (AVAP:LON)Crest Nicholson Holdings Plc (CRST:LON)
Brewin Dolphin’s strategy to broaden its range of propositions and distribution channels to reach wider demographics has resulted in the delivery of a strong performance in 1H21. Adj. PBT of £47.0m was up 29% YoY driven by strong income growth and ongoing cost savings, leading to Adj. PBT margin of 23.5% (1H20:20.8%). The interim DPS is also up by 5% to 4.6p.Total discretionary fund inflows hit a record of £1.0bn in 2Q21 helped by the recent launch of Voyager funds while strong retention rates o
Companies: Brewin Dolphin Holdings PLC
The past year has been highly successful for Deltic. The key highlight was the irrevocable decision by the Shell/Deltic JV at the end of March to drill the Pensacola Zechstein prospect. This decision was an important validation of Deltic’s technical capabilities. We would also identify three other important developments. These are the upgrade to the chance of success on Selene, the de-risking of the Cupertino and potentially the Cortez prospects and the award of six licences under the UK’s 32nd
Companies: Deltic Energy PLC