Interim results are in line. Financials show the full impact from acquisitions completed in H2’20 whilst underlying fee income grew 9% yoy. Earnings were flat yoy from the well-flagged reduction in interest income and the FSCS levy (expensed in H1). Scheme growth momentum continued to build in core Full and Mid-SIPP products. We make no material changes to our forecasts. Following improvements to already resilient economics, we believe CB’s earnings quality is better than ever and deserving of a
Companies: Curtis Banks Group PLC
An in line HY trading update reports continuing organic growth in Curtis Banks’ core Full & Mid SIPP book. Recent acquisitions are enhancing the group’s client proposition and yielding new opportunities, whilst diversifying revenue – particularly Dunstan Thomas. We make no changes to our forecasts. We note a resilient model with no exposure to the underlying value of assets and an inflation-link in the charging structure. Alongside organic growth, we believe this long-dated income stream is dese
Earnings are in line with consensus £13.4m adj. PBT, albeit a little behind our upper end estimate. Organic growth continued despite headwinds; attrition was lower. Proactive measures have been taken to improve income quality, increasing fixed fees to target <7.5% income contribution from interest. +2-6% net organic growth is the goal, alongside complementary investment. We trim our earnings forecasts by 6-7% on FSCS Levy and PI cost pressures. We do not consider the 15x cal’21 PER demanding giv
We feel Curtis Banks (“CB”) is overlooked. Organic growth has continued and the challenges COVID has presented (namely interest headwinds) have been navigated with limited impact overall. Arguably, fixed fee increases alongside firm treasury refi rates have improved earnings quality yoy. We will look for colour on prevailing organic growth at Finals next week (18/3). Given strong revenue visibility vs sub-sector peers (no exposure at all to underlying asset values), we believe that the current 1
Curtis Banks (“CB”) has performed robustly throughout 2020 in less than ideal conditions. The FY update reiterates performance in line with our estimates. Growth in schemes continued, albeit lower than planned at the outset. We make no changes to our forecasts. Proactive measures have been taken to improve earnings quality: increasing fixed fees, thus a diluted interest contribution. CB’s earnings are insulated from equity markets, in contrast to sector peers, and we believe that the current 12x
Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one lo
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Two material updates: fixed fees are being increased, and also the recent treasury refi has underpinned our prior forecast for interest income. Fixed fees are being increased by c.20% which increases recurring income without eroding competitive advantage. It is also introducing formulaic interest to show clients that they will benefit from rising rates. Current year trading is in line. Higher fees drive a 10% earnings upgrade in outer years (FY20e unch). Earnings quality is increasing, but was a
Interims are in line and unchanged yoy. This masks a resilient performance which has seen organic new scheme additions maintained – a reflection of marketing efforts. Some uncertainty remains for H2, particularly around the key treasury refinancing, which may impact interest income. There is competitive advantage in the holistic fee structure. Long term growth may come at the expense short term returns on interest income. We leave forecasts unchanged and will review again around the year end.
Curtis Banks has raised £25m (gross) new equity to fund two accretive and strategically valuable acquisitions – Talbot & Muir and Dunstan Thomas – diversifying the group’s sources of income. Initial consideration totals £38m – implying a c.6.5x FY20e EV/EBITDA multiple for both - to be funded using placing proceeds and renewed debt facilities. There is an additional c.£15m deferred contingent on profitability. The group will remain net cash positive (FY20e £13m). The acquisitions are expected to
AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a highgrade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 o
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Palace Capital has released a good trading update of for the 6 months to 30 September. The Group has achieved good progress both across the portfolio and in sales achieved at Hudson Quarter. With cash reserves rising, the Group continues to look for value creative opportunities to recycle capital which should realise value for shareholders. Buy
Companies: Palace Capital plc
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
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The third quarter continued to enjoy record CIB revenues and loan provision recoveries. Consensus expectations have now largely aligned with our projections, thus leaving limited upside potential in our view.
Companies: Barclays PLC
Non-Standard Finance (‘NSF’), one of the leading providers of unsecured credit to UK adults, published interim results for the half year to 30 June 2021 on 28 September. Overall, these showed a significantly lower loss before tax due to improved operational performance and lower below the line charges. The group also reported that current trading was ahead of plan primarily due to strong collections performance. Discussions with the FCA regarding the redress programme for guarantor loans custome
Companies: Non-Standard Finance Plc
NextEnergy Solar Fund’s investment in NextPower III opens up geographic opportunities in Latin America, Asia and other parts of Europe much earlier than could have been delivered by direct project investment. Additionally, the JV announcement with energy storage system (ESS) developer Eelpower is also an attractive way to accelerate portfolio diversity as well as opening up the door to further asset growth. By working with partners experienced in different geographies and the energy storage segm
Companies: Nextenergy Solar Fund
What’s new: Tatton’s interims trading update confirm it has “delivered strong growth in all its key metrics during the period including revenue, profits and assets under management” (AUM). It is “trading in line with expectations”.
Companies: Tatton Asset Management Plc
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Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
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AuM pushed on in Q2, hitting £10.8bn – including the acquisition of the Verbatim funds (+13% in H1 organic only). Crucially, net inflows have remained strong through the whole of H1 at £109m avg pcm. This flow momentum underpins an encouraging outlook, both near and medium-term. We leave our forecasts unchanged although note risk to the upside heading into H2. We will review our model again at the Interims. Given the pace of growth and scale of opportunity from already established relationships,
Gore Street’s trading update confirms expectations of a strong trading environment for batteries in both the GB and Irish markets. Driven principally by high gas prices creating electricity market volatility and with tight capacity margins likely to remain, we see the company continuing to generate excess cash returns in this financial year at least.
Companies: Gore Street Energy Storage Fund PLC
Currently, Gore Street Energy Storage Fund (GSF) primarily relies on revenue from frequency response services, including Dynamic Containment (DC), to estimate near-term returns. The dislocation in the UK power market has led to a sharp rise in returns available from energy arbitrage leaving GSF’s assets well placed to benefit from this increased volatility. In September, those of GSF’s GB storage assets that participated in the actively-traded GB power markets generated revenues that were signif
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
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Companies: Chrysalis Investments Limited
Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
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TMT Investments PLC have provided a portfoloio update. We have published research on this which is attached and a snapshot of the research is below.
The venture capital company investing in high-growth technology companies has moved one step closer to its first IPO driven exit. In a portfolio update announced this week TMT noted that its portfolio company Backblaze, Inc. publicly filed with the SEC on 18 October 2021. TMT currently holds a 9.97% interest in Backblaze, Inc. (pre its expected fun
Companies: TMT Investments
Companies: Shaftesbury PLC