Record FY23 outturn; continued momentum into Q1

TPFG’s final results highlight another record performance, with the adj. PBT outturn 5% ahead of expectations at £11.2m (SCMe: £10.7m, FY22: £10.7m). Lettings continued to underpin its resilience, whilst TPFG outperformed a more challenging Sales market. Post period end, the transformational merger with Belvoir was completed, making TPFG the UK’s second largest network. Q1 has started well, with the Group trading ahead of expectations. Whilst we leave forecasts unchanged at this early stage of t

Benefits of scale set to materialise

Bigger and better

Database update- TPFG

Merger delivers UK’s second largest network

TPFG’s merger with Belvoir creates the second largest estate and letting agency network, with more than 930 franchise locations, c.152k managed properties, c.28k property sales p.a. and a leading Financial Services business. The merger doubles earnings - we forecast adj. PBT of £20.6m/£26.7m in FY24/FY25 vs. £10.7m in FY23, including £2.5m of cost synergies in FY25. We highlight the attractions of TPFG’s recurring revenues (47%), high margin (34%+ OM), strong earnings growth (25% p.a. LT avg. PB

Robust interims; small reductions to FY24 forecasts

Strong H1 outturn highlights resilience of the model

TPFG’s interim results were well flagged in the 2nd August update. Its franchise model, as well as its focus on Lettings has supported 3.5% growth in H1 adj. PBT despite a challenging market backdrop. Guidance for FY23 is reiterated, with the H1 outturn representing 50% of our FY23 adj. PBT forecast. We expect PBT to be stable in FY23 before a return to growth in FY24. TPFG is the only company in its peer group that has not downgraded its earnings forecasts, evidencing the resilience of its mode

Quality shines through in challenging housing market

TPFG is the UK's largest multi-brand lettings and estate agency franchise. It has been built up through strong organic growth, complemented by M&A. It has a resilient business model, underpinned by a strategic focus on Lettings and its franchise model. We estimate that 67% of revenues are recurring. This provides insulation against the housing market cycle. Despite a challenging housing market backdrop, we expect PBT to be stable in FY23 before a return to growth in FY24. Organic growth is compl

HY trading update in line

Reassuring AGM statement

High quality earnings; compelling valuation

FLASH: FY22 pre-close indicates profit beat

Morning Note – 22 April 2024

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

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

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

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.

Morning Note – 29 February 2024

Jupiter Green

Hardman & Co Insight - Asset managers had a poor 2022

Asset managers had a poor 2022: the S&P Composite 1500 Asset Management Index was down 22% and, according to the Investment Company Institute (ICI), worldwide mutual funds fell by 20%, from $76tr to $60tr. When bond and equity markets fall, the results are unlikely to be pretty: with revenues trending down and multiples contracting, there is a double whammy to contend with. So how do valuations shape up now, after a bullish start to the new year? The first chart is my favourite chart of asset m

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