The January wobble in markets has extended to a whole quarter, and the red pen is out as a result. Forthcoming quarterly updates will show to what extent investors have reacted to market wobbles, of course, but one quarter is no way to judge performance, as we are sure readers can only too happily agree with. The decline in share prices in the quarter was inevitable from a sector with a very high short term beta, but such moves throw up opportunities for investors willing to look through the noi
Companies: ASHM ICP JUP LIO REC SDR ABDN EMG
The inaugural full year results from Standard Life Aberdeen plc are accompanied by the announcement of the proposed sale of the majority of the company’s life and pensions business to Phoenix in return for £2.3bn of cash and a 19.99% stake in the enlarged Phoenix business. This is a welcome move, we believe, cementing the SLA business as a capital-light asset management business rather than a capital intensive life one. The business will be simpler to understand and value; it will retain the own
Companies: Abrdn plc
Markets have hit some turbulence, in the view of many long overdue perhaps. There will be consequences for earnings estimates across the sector if the weakness continues, firstly from lower market levels and subsequently from reduced flow expectations. PERs have to take the initial strain as earnings revisions inevitably are a lagging indicator. Fortunately valuations are not, generally speaking, overly stretched to start with we believe. The wobbly start to 2018 will take some of the gloss off
Companies: ASHM JUP LIO REC SDR ABDN EMG
Aberdeen last reported AUM with its interim results to March 2017, and Standard Life with its interims to June 2017. There had been no update since then. The scope for some estimate error, therefore, was somewhat greater than average to say the least. Allowing for that, the outcome for Assets Under Management and Administration (AUMA) of £646.2bn (31 December 2016 £647.6bn) was pretty close to our estimate with slightly greater outflows in Q3/17 being offset by a better than expected influence f
We initiate coverage of Standard Life Aberdeen (SLA) with a BUY recommendation. The merger of Aberdeen Asset Management and Standard Life creates a strong, global, diversified asset manager and savings provider which is well placed to benefit from the powerful industry driver provided by demographics while also being able to better negotiate the numerous headwinds which the industry faces. We believe that the company will be able to generate profit growth over the medium term which will be more
We have repositioned the portfolio, price targets and ratings to allow for accentuated regulatory risk from on-going capital market volatility.
Companies: AGN ALV AV/ CS G LGEN PRU ZURN ABDN
Standard Life is expected to report a fairly uninspiring set of results as the decline in UK annuity spread business continues to drag on headline results. Attention will likely focus on the release of the group’s Solvency II level which should benefit significantly from the group’s shift in business mix to fee-based liabilities.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Abrdn plc.
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We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
The third quarter continued to enjoy record CIB revenues and loan provision recoveries. Consensus expectations have now largely aligned with our projections, thus leaving limited upside potential in our view.
Companies: Barclays PLC
Companies: Plus500 Ltd.
Updating at the end of H1, Urban Logistics REIT (“ULR”) continued to deploy capital, with 2 further transactions in the last weeks of H1 bringing the total to £103m since the last raise (£109m in Jul-21). There is a further £50m in advanced stages and a £400m pipeline beyond that. Yields are in line with expectations and assets are pregnant with active management opportunities, which ULR thrives on. The board is seeking to move to Premium List to facilitate future growth. We leave forecasts unch
Companies: Urban Logistics REIT plc
Non-Standard Finance (‘NSF’), one of the leading providers of unsecured credit to UK adults, published interim results for the half year to 30 June 2021 on 28 September. Overall, these showed a significantly lower loss before tax due to improved operational performance and lower below the line charges. The group also reported that current trading was ahead of plan primarily due to strong collections performance. Discussions with the FCA regarding the redress programme for guarantor loans custome
Companies: Non-Standard Finance Plc
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What’s cooking in the IPO kitchen?
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
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ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.
Devolver Digital to join AIM, an award-winning digital video games pu
Companies: SAE HMI MNO MSMN NSCI OMG PCA
Gore Street’s trading update confirms expectations of a strong trading environment for batteries in both the GB and Irish markets. Driven principally by high gas prices creating electricity market volatility and with tight capacity margins likely to remain, we see the company continuing to generate excess cash returns in this financial year at least.
Companies: Gore Street Energy Storage Fund PLC
Palace Capital has released a good trading update of for the 6 months to 30 September. The Group has achieved good progress both across the portfolio and in sales achieved at Hudson Quarter. With cash reserves rising, the Group continues to look for value creative opportunities to recycle capital which should realise value for shareholders. Buy
Companies: Palace Capital plc
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
Currently, Gore Street Energy Storage Fund (GSF) primarily relies on revenue from frequency response services, including Dynamic Containment (DC), to estimate near-term returns. The dislocation in the UK power market has led to a sharp rise in returns available from energy arbitrage leaving GSF’s assets well placed to benefit from this increased volatility. In September, those of GSF’s GB storage assets that participated in the actively-traded GB power markets generated revenues that were signif
Anglo American (AAL LN) – On track to achieve 2021 production guidance following continuing production recovery in Q3
Antofagasta (ANTO LN) - US Forest Service proposed a 20-year ban on mining in the watershed of the Boundary Waters in Minnesota
Bushveld Minerals* (BMN LN) – BUY - Valuation 33p - Bushveld back on track with solid Q3 production and cost report
Condor Gold* (CNR LN) - Valuation 102.5p – Infill drilling completed ahead of PFS/FS at the La Mestiza Open Pit
TMC the Metals Comp
Companies: TMC ANTO BMN CNR WRES PXC RMM SHG
TMT Investments PLC have provided a portfoloio update. We have published research on this which is attached and a snapshot of the research is below.
The venture capital company investing in high-growth technology companies has moved one step closer to its first IPO driven exit. In a portfolio update announced this week TMT noted that its portfolio company Backblaze, Inc. publicly filed with the SEC on 18 October 2021. TMT currently holds a 9.97% interest in Backblaze, Inc. (pre its expected fun
Companies: TMT Investments
The quarter enjoyed record provision recoveries and strong fee income generation. The coming quarters should remain supportive. The accelerated capital accumulation enabled management to announce a new $2bn share buyback.
Companies: HSBC Holdings Plc
What’s new: Tatton’s interims trading update confirm it has “delivered strong growth in all its key metrics during the period including revenue, profits and assets under management” (AUM). It is “trading in line with expectations”.
Companies: Tatton Asset Management Plc