Interim results – Poised to perform

AUGM’s muted, but positive, result (+0.8% TR) disguises strong portfolio progress including the emergence of key investees (e.g. Tide, Grover & Zopa 42.7% of NAV) with scaled businesses and significant momentum. Our read is that the portfolio has naturally rebalanced around its winners. This bodes well for future returns. We believe that the fund is poised to perform - driven by revenue and earnings growth (not exits). Trading a c.47% discount to NAV, AUGM is in line with its peers (av. discount

Finals: NAV unch, clear evidence of value creation

NAV remained largely unchanged in the year (+2%) as valuation multiple contraction offset strong underlying growth in the portfolio (+117% revenue growth in Top 10). Post-period end, a further investment round adds c.2pps to NAV (161p pf) and the Cushon exit brings cash to £50m. Augmentum’s longstanding cautious approach to valuation has been validated and the impact on the portfolio minimised. As growth continues, and multiples stabilise, we see scope for value to accrue to NAV. Ultimately, the

Volt Series B $60m funding round drives NAV

Volt’s Series B fund round valuation implies an £11.4m uplift (6.3pps/4.1% on the September NAV) to the value of AUGM’s existing investment in the Company. However, since the transaction occurred post year end (31 March) it will not be included AUGM’s year-end valuation. Prior to the transaction Volta was not a top ten investee, following the transaction Volta will likely be a top five investee. We view the transaction as significant and a useful reminder of AUGM’s appeal ahead of the publicatio

Further investment in Zopa given impressive growth

Augmentum Fintech has announced that it has invested another £4m in digital bank, Zopa, as part of a £75m funding round alongside existing investors. The additional capital will be used to fund Zopas further growth by supporting capital requirements of its expanding balance sheet as well as provide flexibility for potential M&A activity. The bank continues to grow strongly (with >100% yoy revenue growth). Zopa marks one of AUGMs top investments and the additional provided growth capital is a pos

Portfolio update – good progress & new investment

AUGM has published a portfolio update this morning, including the news of the Group having led a funding round into Berlin-based cyber insurance platform Baobab (3m investment), bringing the Groups portfolio to 25 investee companies. AUGM continues to significant growth potential within its portfolio, despite a more challenging macro-backdrop, with its top 5 portfolio companies having generated an average 102% yoy growth rate. Overall a positive update with good progress across key investments.

1H23 – Stable NAV and Good U/Lying Performances

Augmentum Fintech has reported stable NAV per share at 155.0p during 1H23 (flat HoH, +5% YoY). The 19.3% IRR since IPO is marginally below the Group’s 20% Internal Target Return, unsurprising given a challenging market environment. Broadly stable portfolio valuations come as particularly encouraging with underlying investee performances (100% avg. revenue growth for Top 10 assets) largely offsetting multiple compression (EV/NTM Sales from 5.7x to 4.2x). Following the realisation of AUGM’s invest

2H22 – Good NAV Growth & Attractive Opportunities

Augmentum Fintech has delivered a strong finish to FY22, with NAV per share up 19% YoY and +9% HoH to 155.2p, driven by both investments and positive fair value changes across the majority of its portfolio companies. The 23% IRR since IPO is above the Group’s 20% Internal Target Return, demonstrating overall attractive investment performance. Post-period end The Group has invested £4.0m in new portfolio company Kenbi and the £43m proceeds from the sale of its stake in ii strengthens AUGM’s cash

Grover Funding Round as Next Step toward 250p

Augmentum’s portfolio company, Grover, announced the completion of a $330m Series C funding round. The transaction comes at a time during which macroeconomic and geopolitical uncertainty has adversely impacted markets, underpinning the robustness of high quality businesses in AUGM’s portfolio. In addition to the positive market read-across, the funding round as well as Abrdn’s acquisition of interactive investors (“ii”) are expected to positively impact AUGM’s year-end NAV per share, with the co

NAV +9% to 142p, a roadmap toward 250p

Augmentum Fintech (“AF”) has seen continued positive performance during H1, with a +£26m net investment return on the portfolio whilst deploying £45m. Successes include positive returns on Interactive Investor (“ii”), Tide, Grover and Zopa – as well as the maiden disposal (Dext). With ii appearing to be on the cusp of graduating, we look at the next cohort: assuming strategic execution, and with some already linked to IPOs, we see several £1bn+ valuations. We think that these four alone (out of

NAV grows to 130p as follow-on rounds drive value

Augmentum Fintech’s (“AF”) disciplined approach and diversified portfolio has delivered value uplift. A number of follow-on rounds and a maiden exit (Dext) added 14p to the NAV – now standing at 130.4p; +12% yoy and 9% in H2 alone. £31m capital has been deployed since Mar-20, including 4 new investments. There is a significant pipeline of new opportunities (£924m) with £144m (across 24 deals) in active development. In order to pursue these, AF has announced that it is seeking to raise at least £

Maiden exit with 30% IRR, investing in Grover

Augmentum Fintech has sold its stake in Dext (fka Receiptbank) to private equity firm Hg for £10.5m, delivering a £3m gain on sale equating to a 30% IRR. This is Augmentum’s first exit. An additional €2m investment has been made into existing portfolio company Grover to support the continued roll out. The current Series B round implies a £3.2m uplift for Augmentum’s stake. Together, these gains represent c.4p/share in NAV terms. We see further value creation opportunity in Augmentum’s curated po

Resilient H1 performance, momentum maintained

Resilience throughout the COVID pandemic has driven positive portfolio gains and further capital investment. The 119p/share NAV does not come as a surprise given the £27.5m equity raise at 120p was only completed a month ago, and will be deployed to target a deep £120m pipeline – now underway. Trading momentum has been sustained in Augmentum's (“AUGM”) portfolio companies which are high growth, disruptive and innovative. There is (much) more value to play for as this continues. For public market

£28m new equity to target plentiful pipeline

Augmentum Fintech has confirmed the successful completion of the equity fundraise launched earlier this week. £28m (gross) has been raised through an oversubscribed placing at the fixed 120p price. This will allow the manager to target a plentiful £120m pipeline of opportunities; both new and in the existing portfolio. AF is carefully curating a diversified portfolio of investments which are innovating the future of financial services.

Embedded value materially higher than NAV

Venture capital returns take time to emerge. Augmentum Fintech (“AF”) is a relatively new fund, yet we already see material embedded value with some well-established, highly profitable investments – such as interactive investor. Its dedicated focus on Fintech eliminates distraction. Appraising several key investments individually, and using balance sheet carrying value for others, we calculate longer term fair value at 1.6x FY20 NAV – likely nearer 2x, with value outside the scope of our apprais

Mind the gap

Recent years have seen companies opt to remain private for longer; due to their ability to access capital from alternative areas and to remain free of the increasingly burdensome requirements of being listed. The implosion of the Woodford Equity Income Fund as a result of liquidity problems has shone a negative light on open-ended funds holding stakes in private companies. However, the capacity to hold illiquid assets is one of the key characteristics of the investment trust structure. In this a

Lowland Investment Company - Is the tide turning?

Lowland Investment Company’s (LWI’s) unconstrained, multi-cap investment policy differentiates it from most peers in the AIC UK Equity Income sector. It offers investors broad market exposure, outside of the large, traditional ‘income stocks’ at a 13% discount to NAV. The underperformance of small- and mid-cap companies versus larger peers has slowed and a turnaround would be very positive for LWI. Portfolio returns are already benefiting from acquisition activity, spurred by low valuations, and

Redde

Proposed share-for-share merger with Northgate

LIBERUM: Ramsdens Holdings: Reassuring AGM update

Record - Underlying growth and pipeline are attractive

In H124, Record posted steady management fee growth of 3% y-o-y to £19.6m as the company benefited from a higher assets under management equivalent (AUME) base. Total revenues, however, were down 3% as performance fees in H123 outweighed those earned in H124. Profit before tax was down 17% y-o-y to £6.3m as Record incurred costs related to its expansion and modernisation initiatives. In line with its progressive dividend policy, Record increased its dividend by 5% y-o-y to 2.15p per share. After

Initial Equity Trading Comments - 1 December 2023

Investment performance drives 6% H1 AUM growth

AUM was up by £2.2bn or 6% over H1-24, reaching £39.6bn on 31 Mar 24 (30 Sep 23: £37.4bn). This is slightly above the trajectory required to meet our FY24 AUM forecast of £41.1bn (+10% annual growth), but taking a cautious approach our FY24 forecasts remain unchanged. A very strong investment performance was the growth driver in H1, contributing +£4.9bn (+13%) while net outflows were £2.7bn. We maintain our strong conviction that medium-to-long term structural factors favour Impax, but also fla

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.

PCI Pal - +25% FY23 revenue growth, FY24 growth of +28% reiterated

PCI Pal’s FY23 results show revenue growth of +25% to £14.9m, gross profit growth of +31% to £13.1m at a margin of 88%, and an outlook confirming robust momentum in H1 24. The FY23 results are as expected following the August trading update, and FY23 Total Annual Contract Value (TACV) is +23% yoy to £16.4m, with ARR +14% yoy to £12.6m due to £3.1m of contracts in deployment. We expect ARR will increase +35% and +31% to £17.0m and £22.2m in FY24 and FY25, as management lands and expands following

TR Property

TRY: a unique way to capture a recovery in property valuations...

TRIG - Renewables Infrastructure Group

TRIG’s shares have dramatically derated over 18 months, yet prospective returns appear more attractive, not less…

LIBERUM: AEW UK REIT: A resilient quarterly performance

Target Healthcare REIT - DPS growth from a sustainable base

Target Healthcare REIT’s mid-year rebasing of DPS sought to establish a base for growth on a fully covered basis. With FY23 results in line with previous indications, and progress continuing, the company has increased the quarterly rate of DPS by 2% from Q124. With rent collection restored, we expect rental growth, development completions and fixed debt costs to support continued, progressive, fully covered dividend growth.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Strong H1'23 results; forecasts upgraded