Mutares - PE investor focused on special situations

Mutares (MUX) predominantly invests in corporate carve-outs (80%+ of all deals) where it seeks to drive an operational turnaround, and often also executes a ‘buy-and-build’ strategy. MUX looks for companies with an annual turnover of €100–750m, with its ‘sweet spot’ in the range of €200–300m generated across multiple production sites. Its focus is on four major sectors: automotive & mobility (which is early-cycle), engineering and technology (project-driven, late-cycle), goods and services (cons

Mutares - MUX

Edison Investment Research is terminating coverage on Gamesys Group (GYG), Mutares (MUX) and MedservRegis (MDS). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Mutares - Thinking bigger

Mutares (MUX) closed seven acquisitions in H121 and another five were closed or announced after the reporting date. Management highlights that in the current uncertain environment, there are plenty of opportunities for turnaround investors and it reviews a high number of potential investments simultaneously. MUX also closed two larger deals that required it to provide capital to underlying companies – it secured funding for Lapeyre (€20m) and Light Mobility Solutions (€15m). Management expects m

Mutares - Capturing the opportunities

Mutares (MUX) reported an exceptional year in terms of portfolio expansion, ending 2020 with 20 platform investments (vs 13 in FY19). These companies generate €2.2bn revenues annually and MUX’s income from management and consulting increased 61% y-o-y to €66.5m. The proceeds from the recent record-quick exit from Nexive (closed in January 2021) allowed management to propose a 50% higher year-on-year dividend, which implies a 6.5% yield on the current share price.

Mutares - Rapidly expanding portfolio

Mutares (MUX) specialises in restructuring distressed companies and is taking advantage of the current economic downturn caused by the pandemic, as large capital groups are selling unprofitable divisions. Including announced but not yet finalised transactions, the portfolio grew to 18 companies vs 13 at end-FY19. While tough conditions in European industrials sectors weighed on MUX’s H120 results (it consolidates all its entities in full), management highlighted that the portfolio has returned t

Mutares - Opportunities in a distressed environment

Mutares (MUX) specialises in restructuring distressed companies and expects new opportunities to arise amid the current crisis caused by the coronavirus outbreak. STS’s plants located in China have returned to operations and MUX’s focus in terms of current restructuring actions is in benefiting from the end of lockdown and improved economic activity. In 2019, MUX was particularly active in M&A, with 10 investments announced, including six new platforms. These resulted in significant gains on bar

Mutares - Eight acquisitions so far this year

Mutares (MUX) specialises in restructuring distressed companies and has been very active in M&A this year, with eight deals announced to date. It has concluded two platform investments in the automotive and mobility segment and acquired three goods and services platforms. This provides additional diversification following the stronger focus on expanding the engineering and technology business in FY18. That said, the latter remains MUX’s key value driver for now (64% of NAV at end-June 2019) and

Mutares - Seven months, seven acquisitions

Mutares (MUX) specializes in restructuring distressed companies and has been very active in M&A this year, with seven deals announced to date. It has concluded two platform investments in the automotive and mobility segment and acquired two goods and services platforms. This provides additional diversification following the stronger focus on expanding the engineering and technology business in FY18. That said, the latter remains MUX’s key value driver for now (64% of NAV at end-June 2019) and wa

Mutares - New platform investments on board

After reporting c €9m of adjusted EBITDA in H118, Mutares expects FY18 earnings to reach €20–30m. This should be assisted by successful turnarounds and organic growth of portfolio entities, beneficial M&A activity and the deconsolidation of Zanders and Artmadis, which are currently being liquidated. Management expects one or two additional transactions (either acquisitions or divestments) to be initiated and completed in the remainder of 2018, on top of the Knorr-Bremse deal which is already in

Mutares - Buy-and-build strategy fuels expansion

Successful turnarounds supported by add-on acquisitions allowed Mutares (MUX) to post record FY17 results. Improvements across the P&L resulted from profitable exits as well as bargain purchases. The shift in strategy towards platform investments is expected to further validate the benefits of the buy-and-build approach originally introduced in STS Group. MUX is now trying to replicate the concept for Balcke-Dürr Group and La Meusienne. Despite the recent positive developments, MUX’s shares have

- High transaction activity adds momentum

Mutares continued to add new investments to its portfolio in H117, in particular enlarging the STS Group through add-on acquisitions. H117 earnings were supported by the disposals of EUPEC Germany and Fertigungstechnik Weissenfels (FTW). Consequently, portfolio NAV went up by 3.7% ytd to €319.4m as at end-June. Despite the positive FY17 outlook for key holdings and upward potential associated with ongoing restructuring projects, Mutares’s shares trade at a 36% discount to NAV.

European restructuring expertise

mutares AG specialises in the acquisition and restructuring of unlisted companies in Europe and currently holds 13 investments. Shareholder value is created over time as profitable exits boost NAV and enable the company to pay special dividends. A successful realisation has already been achieved at the start of the year and the company intends to complete a further one or two exits this year. mutares’s shares have delivered a compound annual total return of 34% since listing in 2008. Trading at

H&T Group+ (HAT, House Stock at 420p) - Record lending continues

UK REITs: Building back better

UK commercial property has been a cornerstone asset for many income-seeking investors (both retail and institutional) in recent decades, particularly since the global financial crisis of 2007/8 and the resulting ultra-low interest rate environment. However, since rates began to rise in 2022 to tackle surging inflation, meaningful returns have once more become available on lower-risk assets such as cash and government bonds, which has led to a retrenchment from alternative income assets such as p

Record - AUME momentum and a sharper focus

Record’s Q424 trading update demonstrated continued growth in assets under management equivalent (AUME), which will support management fee growth into FY25. In FY24, AUME grew 17% to US$102.2bn, setting a new milestone in business scale. Net inflows for FY24 were US$6.8bn (FY23: US$9.1bn) or 8% of opening AUME. Performance fees of US$5.8m matched the record FY23 figure, and we expect this to offset the negative product mix in FY24. We have reduced our FY24e EPS by 1%, which is affected by £2.4bn

Vanquis Banking Group+ (VANQ, House Stock at 57p) - Q1 trading in line

DSW Capital + (DSW, House Stock at 55p) - Trading update

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Secure Trust Bank+ (STB, House Stock at 700p) - Steady progress, in line with plan

NextEnergy Solar Fund - Q4 Sees Capacity Over 1GW

The final quarter of the financial year has seen NESF take its total portfolio to over 1GW of operating capacity following the energising of its first stand alone battery storage project. International diversification has also grown with the energisation of two co-investments in Europe. While the NAV reflects softer short term power prices following the extreme highs of recent years, the fund remains well positioned with better terms on its debt and the Capital Recycling Programme underway.

LIBERUM: Amedeo Air Four Plus: Emirates aircraft upgrade plans imply the retention of almost all A380s

Upcoming Webinar - Schroder Real Estate Investment Trust

Attend our SREI Investor Webinar, 15th May 9-10am. Nick Montgomery, Head of UK Real Estate Investment, will provide an intro to the Trust and answer live questions.

NextEnergy Solar Fund - Q4/24 NAV and operational update, increased target dividend

NextEnergy Solar Fund has released a Q4 NAV and operational update and announced its 11th consecutive target dividend increase. NAV as at 31 March 2024 was £618.6m (31 December £636.4m), or 104.7p per share. The stand-alone 50MW energy storage asset has commenced commercial operations and two international solar co-investments (260MW) alongside NextPower III ESG have been energised. The total portfolio has increased to 103 operating assets, with a weighted average operating life of 25.9 years an

Finsbury Growth & Income Trust - Train puts his money where his mouth is

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Hardman & Co Research on NB Private Equity Partners: Wider operating company EBITDA margins in 2023

We reviewed NBPE’s business model in our initiation, Co-investments generating superior performance. We noted the high-secular-growth and downside-resilient investee companies, the value added by GPs, the good co-investing cashflow and return profile and the value added by the NB. The 2023 results confirmed all these trends. The key numbers were i) NAV p/sh $28.07 (£22.02), ii) private portfolio +5.3% in 2023 on a constant currency basis, iii) EV/LTM EBITDA 14.9x, and iv) debt/EBITDA 5.3x. The p

Postcard from Vodafone headquarters

NextEnergy Solar Fund – High- and growing-income opportunity?

NextEnergy Solar Fund (NESF) is almost 10 years old. Since launch, it has built a £1.2bn, 933MW portfolio of 100 operating solar assets, powering the equivalent of over 330,000 homes, declared dividends totalling £333m, and avoided the emission of about 2.2 Mt CO2e. NESF is on track to pay 8.35p in dividends, with forecast dividend cover of about 1.3x. Share price weakness that has afflicted the whole sector means that dividend translates to a yield of 11.1%, one of the highest in its sector, a