AUGM’s two lead investees Tide and Zopa (37.4% NAV combined) are executing strongly on their respective roadmaps and have recently (within the last 12 months) undertaken 3rd party led funding rounds; which provides comfort on AUGM’s valuations. Both companies have profitable, cash generative businesses that are expanding their product range and/or geographies. The successful execution of their plans (over the next 12 months and beyond) will lead to a significant acceleration in their growth and profitability. Trading at a c45% discount to historic NAV, the market is signalling a lack of confidence in both AUGM’s NAV and its prospects. WE DISAGREE. In the current market, we believe that AUGM should trade at a 30-35% discount (20-30% upside) with prospects for further tightening over time. In our opinion, when the re-rating occurs it will be rapid and triggered by portfolio specific news flow that reestablishes NAV momentum. AUGM’s Interim results (30 Sept) results are scheduled to be published in late November.
