N+1 Singer - Harwood Wealth - Appointment of Nick Bravery as Chief Financial Officer
06 Oct 16
Nick Bravery, Harwood Wealth’s Finance Director, has been appointed to the board as Chief Financial Officer with immediate effect. Harwood Wealth is growing both organically and through consolidation of the fragmented financial advisory industry, capturing returns through integration of target businesses on to an efficient and comprehensive platform. HW currently has c.£3bn AuI/M.
N+1 Singer - Harwood Wealth - Acquisition prompts upgrades to outer years
30 Aug 16
Harwood Wealth Group (“HWG”) has announced the acquisition of Network Direct, a network of 107 financial advisers with £1bn client assets. The rationale is to convert assets under influence (“AuI”) into AuM capturing additional revenues. We assume modest conversion, resulting in unchanged FY16e forecasts and upgraded FY17e (+5%) and FY18e (+13%). If HWG was to deploy all free net cash on acquisitions and convert AuI specified by payout of full contingent consideration in NDL, there is c.£6m (annualised) upside to our EBITDA forecasts. A maiden dividend is expected in Q1’17.
N+1 Singer - Morning Song 30-08-2016
30 Aug 16
Verona Pharma will present three abstracts at the European Respiratory Society (ERS) 2016 International Conference with one ‘Late-Breaking abstract’ presentation providing detailed results from its Phase IIa ‘add-on’ trial with RPL554. Verona Pharma continues to announce positive results with its proprietary suspension formulation of its first-in-class dual inhibitor. RPL554 has demonstrated an attractive profile with its combined bronchodilator and anti-inflammatory properties, representing a novel approach to the treatment of respiratory disease. The recent £44.7m equity capital raise enables the group to progress its development of RPL554 through to a Phase III ready stage. If development goes according to plan, RPL554 could be in a position to commence Phase III trials by the end of 2018. We remain upbeat on Verona and look forward to the commencement of Phase IIb trials in H1 2017.
N+1 Singer - Morning Song 29-06-2016
29 Jun 16
OMG has announced the appointment of Roger Parry as Non-Executive Chairman. Roger is currently Chairman of two AIM listed companies (YouGov and Mobile Streams) and has held a number of Chairman roles previously, including Johnston Press from 2001-09. He brings extensive leadership experience and will succeed Anthony Simonds-Gooding with immediate effect. OMG continues to offer investors a combination of balance sheet strength, cash generation and consistent organic growth. We note that the group is likely to be a beneficiary of recent currency moves, further underpinning our full year forecasts. Our prudent SOTP valuation, with no value ascribed to OMG Life, results in an intrinsic value of 54p, offering plenty of upside to investors.
N+1 Singer - Harwood Wealth - Interims in-line, healthy acquisition pipeline
29 Jun 16
Harwood Wealth Group (“HW”) has reported interims – maiden results as a PLC – which are in line with our expectations. Revenues have continued to grow fuelled by underlying organic growth and the impact of a number of successful acquisitions. The acquisition pipeline is healthy with 7 prospects at non-binding heads of terms and having completed 13 YTD. We leave our forecasts unchanged at this point in time. We note £12.1m net cash post-IPO to be deployed on earnings enhancing acquisitions.
Profitable consolidation on an established platform
19 Apr 16
Harwood Wealth is a vertically integrated wealth management business with c.£1.25bn AuI/M. The business has a proven track record of selecting, completing and integrating acquisitions, with 48 completed to date. With 11 acquisitions made in FY16e to date, FY17e provides a more accurate representation of the current run rate performance. As our forecasts only capture organic growth, we see upside from the deployment of £10m new equity raised on IPO (at 81p) vs the current share price. The acquisition strategy will deliver earnings accretion creating shareholder value. The board will look to pay a dividend following FY16 final results (N+1Se 2.1p).