Morning Note – 17 January 2023

LendInvest - Leveraging its tech platform to scale in property finance (10 for 23 extract)

LendInvest’s investment case is focused upon scaling its proprietary, cloud-based fintech platform. H1 23 AuM of £2.4bn compares to £150bn of lending in its three current segments, expansion into three adjacent markets will expand the TAM to £500bn, and white-labelling the platform to generate SaaS revenue in the £1.1tn UK mainstream homeowner market, and new geographies, would transform the group’s financials. After the volatility caused by the UK mini-budget in September, we expect the group w

Solid H1 amidst weakening macro environment

LendInvest continued to grow and gain market share in H1 of FY23 (to 30 Sep 22), with AUM closing on £2.43bn, 33% up y-o-y (30 Sep 21: £1.83bn) and 13% up over the half-year (31 Mar 22: £2.15bn). In the four years since the end of H1-19, when AUM stood at £546m, AUM has grown by a compounded annual growth rate of 45%. And despite a worsening macro-economic environment, half-year financial results were also solid. H1 revenue fell 8% y-o-y from £46.3m to £42.5m; adjusted EBITDA grew 7% from £13.

Morning Note – 30 November 2022

LendInvest - Strong H1 PBT and FCF as the platform strengthens

LendInvest has reported H1 23 PBT of £14.8m, H1 underlying FCF of £11.4m, and reiterated FY23 guidance. H1 AuM growth of +33% yoy is in line with the October trading update, with growth across all lending products, including +44% from Buy-to-Let. FuM growth of +20% to £3.4bn provides c£1bn of headroom for future expansion, and includes a £180m financial partnership with Lloyds Bank. Gross profit grew +17% to £31.1m, and including opex ahead of the launch of the specialist homeowner product, adju

H1 AUM in line, capital headroom up, outlook slows

AUM ended H1 of FY23 (30 Sep 22) on £2.43bn, 33% up y-o-y (30 Sep 21: £1.83bn) and 13% up over the half-year (31 Mar 22: £2.15bn). While market data is not yet available to 30 Sep, it is obvious that LendInvest is continuing to rapidly gain market share. Lending products also continued to prove attractive to institutional investors. Funds under management (capital committed by investors) stood at £3.44bn on 30 Sep, up 17% over H1, which provides ample lending capital ‘headroom’ of £950m to fue

Morning Note – 10 October 2022

Morning Note – 15 August 2022

Strong growth, surging profits and maiden dividend

LINV has delivered strong top-line growth with AUM up 36% to £2.1bn and revenue up 21% to £88m. But the standout feature of these results was operational gearing boosting profitability with adj. EBITDA jumping 90% to £20.3m and PAT up 187% to £10.9m. LINV is financially well-armed to pursue further growth with a strong balance sheet and ample lending capital from institutional investors. Indeed the Board has also recommended a maiden dividend of 4.4p per share: a sure sign of confidence in t

Morning Note – 29 June 2022

LendInvest - Leveraging its tech platform to expand in property finance

We initiate coverage of LendInvest with a target price of 300p. Its investment case is based on scaling its proprietary fintech platform, which efficiently connects borrowers and investors across UK property finance. Today’s FY22 results highlight an impressive +36% growth in the platform’s assets to £2.1bn, and there is ample scope to continue to scale into the £150bn of assets in its current three segments, a further £350bn in three adjacent markets, and through white-labelling its platform to

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from HIK, RKT, TPK, AO., SHI, LINV, & AEXG.

LendInvest - FY22 growth ambitions met: AUM +36%

AUM reached £2.15bn at the end of FY22 (31 Mar ‘22), 36% up y-o-y (end FY21 AUM: £1.57bn), 18% up in H2 (AUM on 30 Sep ‘21: £1.83bn), and almost exactly in line with our forecast of £2.17bn. Continuing the trend of H1, buy-to-let lending was the main driver of growth. FUM (‘funds under management’ i.e. capital committed by investors and available to lend out to borrowers) was largely unchanged from the end of H1 at £2.9bn (+2%), which was as expected, as LendInvest did secure a number of new or

Hot Off The Wires - The Day Ahead

Today's news & views, plus announcements from BHP, CMCX, FXPO, UTG, AVCT, PMI & LINV.

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%

Hybridan Small Cap Feast - 21 Feb 23

21 February 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 objec

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

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

Oakley Capital Investments Ltd (OCI): 2022: NAV returns driven by EBITDA growth

The January trading statement announced NAV (662p per share), total NAV return (24%), NAV growth driven by EBITDA growth (65%), modest multiple expansion (35%), investments (£271m), realisations (£244m), available finance, including cash (£210m), and commitments (£929m). The detailed results announcement highlighted i) 2022 exits, on average, 70% above carrying value, ii) 22% investee company average earnings growth, iii) weighted average EV/EBITDA of 15.9x, below listed market levels, iii) a PE