This Week's AIM Highlights 21st October 2022

finncap: Change of CEO and appointment of new directors

finnCap announced this morning a proposed new CEO and the appointment of new directors. Sam Smith, finnCap’s CEO, has announced her intention to step down from the position and move into an advisory role within the group. John Farrugia, currently Managing Partner of finnCap Cavendish, will become a director of the group and then CEO after Sam Smith steps down.

Hybridan Small Cap Feast 16/05/22

Dish of the day Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa intends to join the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021. Due 18th May 2022. EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specifi

Investment in a high-growth advisory market

Following a positive trading update, finnCap has made an interesting move into a fast-growing advisory market, taking a 50% interest in Energise, a Net Zero and sustainability consultancy. The £2.1m consideration comprises £1.9m cash and 902,090 new finnCap shares. The shares will be admitted on or before 29 April, after which finnCap will have 180,818,177 shares in issue. Of the shares issued, 50% are subject to a 12-month lock-up and 50% to a 24-month lock-up. The impact of the investmen

Further upgrade to FY22 revenue guidance

finnCap Group PLC has provided an impressive full-year (to 31 March 2022 year-end) revenue update, ahead of its July results announcement. Total revenue (unaudited) was £52.4m, 12% up on FY21, driven by a doubling of revenue in finnCap Cavendish to £24.1m. This is £1.4m above our previous forecast (£51m) and comfortably above management’s (pre-March update) £45-50m guidance. The company has guided to adjusted pre-tax profit remaining in line with market expectations.

Impressive trading update in a tough market

finnCap Group PLC has released a very encouraging and impressive trading update, ahead of its full-year results announcement in July 2022. Revenue (unaudited) for the financial year to 31 March 2022 will exceed the top end of its £45-50m guidance range. This demonstrates a strong performance in challenging markets where capital market transactions have been delayed or cancelled. We now forecast full-year revenue of £51m, a 5% uplift from our previous forecast of £48.5m. Management commented that

Increased dividend guidance

finnCap’s impressive H1 performance has enabled it to invest in the business, whilst further strengthening its cash position to £22.6m. Balance sheet strength and an encouraging outlook underpin improved dividend guidance to 1.75p per share for the current year – a prospective 4.8% gross yield. The strong performance and cash position provides further options for organic and inorganic growth. Management has reiterated revenue guidance of £45-50m for FY 2022. We have increased our revenue forecas

Very strong first half revenue confirmed

Following its positive AGM trading update on 23 September, finnCap has delivered its promised update on revenue for the six months to the end of September 2021. With a further four M&A deals closing between those two dates, H1 2022E revenue is £31.8m, up 55% on the prior year comparator of £20.5m. The Group has raised the lower end of its guidance range for full year revenue by £5m to between £45m and £50m. The most striking performance in H1 is that of finnCap Cavendish which has reported reven

Strong trading and a robust balance sheet

finnCap’s AGM statement reflects another strong period of trading. It confirms that the Group’s performance so far in its current financial year puts the trend for revenues slightly above the top of its guidance range of £40m - £50m for the full year. In particular, CEO Sam Smith highlights finnCap’s robust M&A performance both in private and public markets. Management remains confident of delivering a result consistent with its full year expectations. We also note that the Group continues to ta

Record results in an extraordinary year

Investment in growth bears fruit finnCap has delivered FY 2021 revenue in line with guidance and adjusted EBITDA 3% ahead of our twice-upgraded number. This financial year just reported was dominated throughout by the pandemic. Initially, it saw swift action by the management team to contain costs and conserve cash. Subsequently, the Group delivered a performance which far surpassed expectations this time last year, positioning it with a strong balance sheet heading into FY 2022E. The 1.5p divi

Strong end to FY 2021E brings further upgrade

When finnCap issued a very positive trading update in early March, it noted that it retained a good pipeline with deals still to close in the remaining weeks of its financial year to the end of March 2021. The post-close update confirms that the Group did, indeed, secure further revenue following stronger performances than expected across all its businesses. It states that Total Income will be around £47.3m – well ahead of the previous view of ‘in excess of £43m’ and an 83% increase on the prior

Uncertain outlook comes as no surprise

We take a positive view of Legal & General’s FY 22 results. Despite the tough environment, the Group managed to outperform expectations – something which was hardly a given for such a large asset manager. With L&G being widely exposed to the UK economy, it might be a call one does not want to make but the firm’s business remains one of spreads – as long as a default does not occur. We remain positive but concede that L&G embeds more risk than we had assumed.

Very strong CY22 - CY23 upgraded 10%

LIBERUM: Alpha Group International* - Highly attractive global growth opportunity

Ambitious winds of change

M&G’s FY 22 results were strong. It was also the opportunity for new CEO Andrea Rossi to depict clearly his strategy for the upcoming months. While the impetus is clear and the objectives are ambitious, we rather believe in a structural improvement of the business (driven by the higher rates environment) than a commercial one.

Hybridan Small Cap Feast - 06 Mar 23

6 March 2023 @HybridanLLP 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 objective

Belvoir Group - Debt free, entrepreneurial and diverse

2022 followed on from the strongest year for property in recent history, but Belvoir has, nevertheless, reported a robust set of full-year results further evidencing the power of its franchised model and strategy. FY 2022 revenue was up +14% (+2% like-for-like), gross profit up +6% and adj. PBT down -1% as the resilient Lettings income and expanding Financial Services business continued to grow (both +4% LFL), while housing Sales fell (-15% LFL) as market conditions weakened and administrative c

Morning Note – 27 March 2023

Hybridan Small Cap Feast - 14 Mar 23

14 March 2023 @HybridanLLP 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 objectiv

Critical Metals Plc - Initiating Coverage - 20th March 2023

Critical Metals is a British company that has acquired a 70% interest in a producing Molulu copper mine in the Katanga region of the DRC. The focus of the company is in the natural resources sector in Africa focused on the strategic or critical metals as defined by the United States Government Survey list in Open-File Report 2018-1021 and the Critical Raw Minerals as defined by the European Commission. The main catalysts for 2023 will be the announcement of the first sales of copper ore. This i

LIBERUM: Pollen Street * - Clear fundraising momentum

LIBERUM: Real Estate Investors* - Profitable sales drive valuation increase and NTA outperformance

NAHL Group - Finals

NAHL generated growth in both its Personal Injury (PI) and Critical Care divisions, the former despite a continuation of subdued market conditions – hence market share gains. Results were in line with our forecasts but with a significant reduction in net debt which is especially welcome in the current high interest rate environment. Group strategy remains intact and in PI that means building the embedded value of future cash flows in NAL while flexing enquiry placements to maximise cash generati

Positive update - EPS upgraded by 5% p.a.

H&T (initiation of coverage): Pawnbroking royalty, with strong, profitable growth

Founded in 1897, H&T is the UK’s leading pawnbroker, with 269 stores, and it has gained a strong pawnbroking market share in recent years. While it is growing ancillary gold buying and forex products, its core is pawnbroking and related retail services. As other small-sum, short-term lenders have withdrawn, H&T’s well-capitalised, low-risk proposition has unique growth opportunities, with the pledge book up over 50% in 2022. The lessening of legitimate competition at a time of heightened demand

Interims in line, undervalued high quality income stream

Income quality stands out here: lfl rental growth continues, occupancy is full and rental collection is strong. The asset class is demonstrating the ability to perform in challenging conditions, reflecting the structural undersupply of high quality PRS homes in the UK. Pre-announced, EPRA NAV was largely unchanged at 117p in H1 with no yield compression and all rental earnings distributed. We make no changes to forecasts at this stage. We see an attractive total return with the shares trading at