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Eurazeo’s Q1 trading statement showed solid top-line growth across the portfolio companies as well as the asset management activity. The latter was driven by the continued rise in AUM, buoyed by higher fundraising despite shakier markets. These same drivers, as well as the solid Q1 performance from the portfolio companies give confidence on a more upbeat FY outlook even if the current macro and geopolitical headwinds are a key risk.
Companies: Eurazeo (RF:EPA)Eurazeo SA (RF:PAR)
Eurazeo’s FY21 saw record results across the board and bigger ambitions for its asset management business, confirming that the company’s strategy delivers and supports shareholder returns (the proposed special dividend comes as a welcome surprise). Last year’s strong execution has Eurazeo in solid footing to face the current volatile market environment, even if a cool-down of private markets cannot be excluded given the tense geopolitical situation and its implications on the global economy.
Eurazeo posted a solid Q3 release, with fundraising over the quarter putting the ytd tally at a record €3.0bn, already ahead of the FY20 performance all of 2020. This supports the strong momentum in AUM which is reflected in rising fee revenues from its third-party asset management activity. High levels of investment and realisations should extend into 2022, pointing to an upbeat FY22 scenario.
Eurazeo published strong H1 figures with positive contributions coming from all activities, leading to the second highest H1 net result over the last 12 years. Moreover, rising valuations for its portfolio assets, record fundraising and a busy deal pipeline ahead show that Eurazeo is getting things done. The progress made on the strategic targets presented back in November support a brighter outlook.
Eurazeo released Q1 figures that signal another year of strong fundraising after a record 2020. While management fees only grew modestly due to higher balance sheet divestments, the company is rebalancing towards more third-party capital further developing its money manager pursuit. As for the outlook, Eurazeo points to a busy divestment schedule through 2021-22 concerning its more mature funds led by the favourable market environment.
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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Weekly round-up of AIM-listed healthcare news.
Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
Companies: ANIC RUA CREO GENI HEIQ IHC IXI IUG OPTI SBTX VAL VLG
Companies: H&T Group plc
Urban Logistics REIT (“ULR”) has delivered a solid FY22 performance – deploying capital apace and driving strong returns through active asset management. Earnings and dividend are both in line vs SCMe. EPRA NAV is 190p (+7% vs SCMe); as yield compression came as a bonus. Caution is being exercised in deploying remaining capital, which impacts FY23e earnings only. We upgrade EPRA NAV by 14-20% incorporating some (but not all) recent yield compression. We increase our Target Price to 210p (FY23e E
Companies: Urban Logistics REIT plc
Singer Capital Markets
Argentex Group (“AGFX” or the “Group”) is a regulated, commercial FX specialist, offering a range of service-led and technology-enabled FX products to corporate, institutional and HNW clients. The Group’s core business has a strong growth track record and we expect a normalising market environment post-COVID to support organic growth within this. Additionally, we see attractive opportunities across its newly launched platform with a range of technology-enabled products as well as its continuing
Companies: Argentex Group Plc
Companies: D4T4 NTQ FEN IOG PMG SAV SCE
Mercia Asset Management reported FY22 results, with a significant uplift in adj. operating profit to £8.4m, driven by strong management fee margins of >2% on stable FuM as well as strong finance income during the year. Group AuM has grown to >£1bn post period end, driven by fundraises across the Northern VCTs. The Group is well set to achieve its Mercia 20:20 Vision, with ~£27m (~46%) of its cumulative three-year PBT target delivered in year one. We increase our adj. EBITDA forecasts by 1-26% on
Companies: Mercia Asset Management PLC
Companies: Real Estate Investors plc
1 July 2022
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives
Companies: VTU ADME ARCM LVCG MANO NMT PGH SLE
Arrow Exploration (AXL LN)C; Target price of £0.45 per share: Another well delivers flow rate above expectations – The RCS-1 well was flow tested at oil rates of up 1,872 bbl/d (936 bbl/d net to Arrow) of 30 API crude from the C7B sands. The zone was tested for 33 hours at an average oil rate of 1,076 bbl/d (538 bbl/d net to Arrow) with no formation water. Production will start next week at ~1,000 bbl/d (500 bbl/d net) in order to mini
Companies: UKOG TXP SQZ BLOK AOI 88E ZPHR GPRK GPRK CEG AXL
Augmentum Fintech has delivered a strong finish to FY22, with NAV per share up 19% YoY and +9% HoH to 155.2p, driven by both investments and positive fair value changes across the majority of its portfolio companies. The 23% IRR since IPO is above the Group’s 20% Internal Target Return, demonstrating overall attractive investment performance. Post-period end The Group has invested £4.0m in new portfolio company Kenbi and the £43m proceeds from the sale of its stake in ii strengthens AUGM’s cash
Companies: Augmentum Fintech
Marlowe delivered an impressive set of FY22A results, with underlying organic revenue growth of 9%, Adj EBITDA margins up 240bps to 18.6%, and Adj EBITDA of £54.4m (ahead of our £50.7m forecast). We make minor updates to our FY23E forecasts (Adj Diluted EPS increases 1% to 49.6p) and release new FY24E forecasts. Given the strength of Marlowe's business model, its defensive nature (non-discretionary products and services; 85%+ recurring revenue), the group's continued positive momentum (including
Companies: Marlowe Plc
Dish of the day
Visum Technologies has joined the AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators).
No Leavers Today.
What’s cooking in the IPO kitchen?
Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Compan
Companies: VAST TSTL 7DIG AHT CMX JADE
Further to its strategic review, Palace Capital intends to focus on becoming an ESG driven, regional office market specialist. To that end the company has announced a new £46.5m property disposal programme including its entire industrial property portfolio with the proceeds to be reinvested into the office sector. Palace Capital has also announced a buyback for up to 5% of its shares and continues to review its cost base. The outcome of the strategic review is to sharpen the focus on themes mana
Companies: Palace Capital plc
The final decision on CRB III (see below) on streaming revenues is positive for Songwriters, Music publishing and Hipgnosis (SONG). The decision will result in addition revenues being paid to SONG over the coming periods. We view the ruling as positive and evidence of a continuing shift in the understanding of the value of a Songwriter’s contribution to a hit record and the willingness of industry stakeholders to recognise it. YTD SONG has de-rated significantly and currently trades on a 23.8% d
Companies: Hipgnosis Songs Fund Limited Shs GBP
Stocks in focus this week are Personal Group, Johnson Service Group, Capita and Mears
Companies: Personal Group Holdings Plc