Net inflows strengthen again, but market falls reduce FUM

Two themes jump out at us at the close of FY22 (to 30 Jun 22). First, in the first full FY of CEO Andrew Shepherd’s tenure it has been a year of strategic strengthening, characterised by a return to consistent net inflows, following the ‘restructuring’ years of FY20 and FY21, which suffered net outflows. Most impressive now are the net inflows in Q3 and Q4, periods of sharp market falls, which can coincide with net outflows for investment managers. Second, in absolute terms, investment performa

FUM inflow momentum continues in turbulent markets

Amidst significant market volatility - which often coincides with net outflows for asset and wealth managers - BM impressively recorded £0.2bn of net Funds Under Management (FUM) inflows during Q3 of FY22 (Jan - Mar 22). This was its fourth consecutive quarter of positive net flows, and indicative of continuing strong momentum in the business. We have made a small ‘mark to market’ adjustment to our forecasts (FY22 estimate reduces from £17.2bn to £17.1bn, FY23 from £18.8bn to £18.7bn), but rema

Ambitious growth strategy builds on 30-year track record

We initiate today on Brooks Macdonald. Prospects for revenue and profitability growth look encouraging as we examine a number of key factors including: Management's ambitious organic and acquisitive growth plans. BM is operating in a huge market with substantial medium-to-long-term tailwinds. It has a track record of delivering superior investment returns, which is one of the most important factors used by financial advisers when selecting an investment manager.   FUM growth has been solid in r

Small Cap Feast

The FT reports that World Chess has announced plans for a novel “hybrid” IPO where it will first issue a digital token ahead of an AIM float The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No me

Small Cap Feast

Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

Small Cap Feast

Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings (AIM-EKF). Total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov. Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA Kropz PLC—an emerging plant nutrie

Morning Song

Brooks Macdonald Group (BRK LN) FuM +3% in Q1, core UK IM net inflows still running strong at 8% p.a.

Morning Song

Adept4 (AD4 LN) Successful resolution of legal dispute | Brooks Macdonald Group (BRK LN) Finals show benefits of growth held back by cost, but EPS in line | IndigoVision Group (IND LN) Losses narrowing and guidance reiterated | Safestyle UK (SFE LN) Improving risk profile – upgrade recommendation to Hold | Sigma Capital Group (SGM LN) Completed site sold to PRS REIT, further development site acquired | The PRS REIT (PRSR LN) Site acquisitions, forward purchases add five sites comprising 380 unit

Morning Song

ATTRAQT Group (ATQT LN) Interims show encouraging progress | Bodycote (BOY LN) Strong H1 growth, modest upgrade to guidance | Brooks Macdonald Group (BRK LN) FuM +6.5%: Better markets in Q4, net inflows sustained at 9% annualised | Findel (FDL LN) Strong start to the year with both divisions performing | Frontier Smart Technologies Group (FST LN) Trading in line with revised expectations | Howden Joinery Group (HWDN LN) Solid H1 results given circumstances + on track to meet FY forecasts | Renis

Morning Song

Brooks Macdonald Group (BRK LN) FuM -0.7% in Q3: strong net inflows sustained, unhelpful markets | dotdigital Group (DOTD LN) New feature launches highlight growth potential | Porta Communications (PTCM LN) Appointment of New Joint Chief Executive Officers

Morning Song

Brady (BRY LN) Full year results in line with downgraded expectations | Brooks Macdonald Group (BRK LN) Underlying progress, but alongside an increase in legacy provision | Burford Capital (BUR LN) Argentina case sold for $107m cash, $94m profit | Futura Medical (FUM LN) Supportive PK data for MED2002 | Goals Soccer Centres (GOAL LN) Positive underlying momentum temporarily derailed by snow hit | Gresham Technologies (GHT LN) Clareti-growth driving strong performance | PROACTIS Holdings (PHD LN)

Morning Song

Brooks Macdonald Group (BRK LN) +7% Q2 FuM, reiterating BUY on sustained growth | Domino’s Pizza Group (DOM LN) Strong Q4 resulting in a beat | dotdigital Group (DOTD LN) New CFO appointment | EMIS Group (EMIS LN) Loss of minor contract | Restore (RST LN) Y/E update confirms another year of strong growth | UDG Healthcare (UDG LN) Positive Q1 update

+7% Q2 FuM, reiterating BUY on sustained growth

Once again Brooks Macdonald has demonstrated the ability to deliver strong net inflows with a 17% annualised performance contributing to +7% growth in headline FuM during Q2. We update and adjust our model for a number of factors with no material changes (EPS: FY18e -5%, FY19e -1%), but highlight that we have further tempered our cost model yet we remain 10% above FY19e consensus. We adjust our 12m Target Price, still using 17x FY19e PER, to 2634p (from 2655p) and reiterate BUY.

So far so good

The group posted a strong set of results showing faster and stronger-than-expected net interest margin expansion and no signs of a deterioration and above all anxiety on the asset quality front. It remains to be seen if the UK government will allow banks to hold on to the benefit of interest rate increases and if the UK economy proves as resilient as expected.

Sustainably robust results which we expect to trigger distributions

Legal & General disclosed strong HY 22 results, albeit in line with the consensus’ expectations. With most of the metrics improving on a yoy and sequential basis, we believe that the strong solvency position, in an environment with (sustainable?) higher yields, should trigger capital distributions to shareholders at the year-end.

And another layer of distributions

Aviva unveiled a fair operating result. While, in line with the insurance industry, Aviva saw a strongly negative impact from financial assets revaluation, the solvency position improved materially, yielding additional capital distributions. Once distributions cease, we believe that Aviva could be a takeover target.

Review of Electricity Market Arrangements - REMA Could Bring Benefits

Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy

SHORE CAPITAL - H&T Group (HAT) - House stock at 411p

Cenkos:Duke Royalty Ltd -Record revenues keep on rolling

Cenkos:Duke Royalty Ltd -Record revenues keep on rolling

Hybridan Small Cap Feast 09/08/22

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports

LIBERUM: Plus500* - Increased share buyback momentum

H&T Group (HAT) - House Stock, 411p - Golden oldy … celebrating 125 years

LIBERUM: Alternatives Daily: CSH | RECI

Hybridan Small Cap Feast 21-07-2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export

Robust AUMs in a challenging environment

Great results posted by M&G, which recorded very resilient AUMs. The firm managed to outperform the consensus despite the tough environment. While the management avoided any capital plans comments, the resilient solvency position leaves great prospects while the current share buyback is still far from being completed.

Hybridan Small Cap Feast 16/08/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports to over 40 count

8AM Acquisition Completed – 2-4% EBITDA Upgrades

Tatton Asset Management has announced the completion of a 50% stake in 8AM, following regulatory approval. We update our model on the back of this, reflecting the positive financial impact of the investment. We see 2-4% EBITDA upgrades over the forecast period and 1-3% EPS upgrades, as the operating profit contribution more than offsets the higher sharecount as part of the share consideration. 8AM will provide TAM’s clients with access to an extended range of risk profiled investments, underpinn

Morning Note – 1 August 2022