• Net result attributable to shares decreased from a profit of €145m for 2019 to a loss of €90m for 2020 • Loss allowances rose from €90m for 2019 to €344m for 2020 • DPS proposal of €1.50 for FY2020 as announced in January despite an EPS loss €-1.50 • Operating profit target range of €100-175m for FY2021 and €300m for FY2023
Companies: Aareal Bank AG
• Aareal Bank expects a consolidated operating loss in a double-digit €m amount for FY2020 • Dividend proposal of €1.50 per share in the current year for FY2020 in two tranches • Aareal Bank anticipates a clearly positive operating profit for 2021 and it envisages a consolidated operating profit in the range of €300m for 2023
• Net profit attributable to shares decreased from €35m for Q3 19 to a loss of €4m for Q3 20 • Loss allowances rose from €27m for Q3 19 to €61m for Q3 20 including €30m direct and indirect impacts of COVID-19 • Aareal targets a substantially positive consolidated operating profit, expected in the medium double-digit €m range for FY2020
• Aareal Bank sells a 30% stake in IT subsidiary Aareon to Advent International for €260-310m, which values total Aareon at €860m to €1.03bn compared to a total market cap of Aareal Bank of €1.1bn • No special dividend expected as the capital gain of €180m will be recognised directly in consolidated equity and not affect net income • Aareon’s business seems more attractive for shareholders than old-fashioned banking business
• Net profit attributable to shares decreased from €37m for Q2 19 to €5m for Q2 20 • Loss allowances rose from €23m for Q2 19 to €48m for Q2 20 including €39m direct and indirect impacts of COVID-19 • Aareal considers a substantially positive consolidated operating profit expected in the medium to high double-digit €m range for FY2020
• Net profit attributable to shares decreased from €35m for Q1 19 to €2m for Q1 20, which is below the consensus expectation of €5m • Loss allowances rose from €5m for Q1 19 to €58m for Q1 20 including €50m direct and indirect impacts of COVID-19 • Aareal considers a substantially positive consolidated operating profit should be achievable for FY2020
• Net profit attributable to shares was down by 30% to €145m • DPS proposal and net profit slightly above consensus expectations • Expenses of €50m at loss allowances for the accelerated reduction of risk exposures mainly in Italy in 2019 • Disappointing outlook for 2020 only on the 2019 level
• Net profit attributable to shares was unchanged at €37m for Q2 19 • RWAs decreased by 2% to €12.8bn at end June 2019 versus year-end 2018 • Aareal Bank confirmed its operating profit (pre-tax profit) target for FY2019
• Net profit attributable to shares decreased by 10% to €35m for Q1 19 • Total expenses rose stronger than revenues due to DHB and European bank levy. 2/3rds of the expected integration costs for DHB were already booked in Q1 19 • Aareal Bank confirmed its operating profit (pre-tax profit) target for FY2019
Preliminary net profit attributable to shares increased by 9% to €208m for FY2018 compared to FY2017. Net interest income was down by 8% to €535m for 2018 compared to 2017. Loan loss provisions declined by 12% to €72m in 2018. Commission income rose by 4% to €215m in 2018. The net derecognition result was down by 52% to €24m for 2018 compared to 2017. Administrative expenses declined by 10% to €462m in the same period. Pre-tax profit decreased by 4% to €316m for 2018 compared to 2017. Pre-tax profit includes a positive non-recurring effect of €55m from the acquisition of Düsseldorfer Hypotheken AG (DHB) in 2018 and of €50m in 2017 from a subsidiary’s reversal of provisions (Corealcredit Bank) which was partially offset by €24m in provisions. The tax ratio was 28.5% for 2018 compared to 35% for 2017. The RoE before tax was 11.6% for 2018 compared to 11.9% for 2017. The Basel 3 fully phased-in core Tier 1 ratio was 17.2% at end-December 2018 versus 19.6% at year-end 2017. The regular dividend proposal per share decreased from €2.50 for FY2017 to €2.10 for FY2018. Aareal Bank released target figures for FY2019. The operating profit (pre-tax profit) target is in a range between €240m and €280m and the EPS target is between €2.40 and €2.80 for FY2019. The Bank expects RoE before taxes of between 8.5% and 10% for the current financial year. Aareal said, assuming the full implementation of new capital requirements (finalising Basel III – also known as “Basel IV”), the CET1 ratio was 13.2% at 31 December 2018, and thus significantly above regulatory requirements. Given persistent regulatory uncertainty, Aareal Bank currently considers a target CET1 ratio of around 12.5% to be appropriate. The bank intends to decide upon the appropriation of existing excess capital during the course of this year.
Net profit attributable to shares decreased by 13% to €41m for Q3 18 compared to Q3 17 and was up by 11% compared to Q2 18. Net interest income was down by 9% to €131m for Q3 18 compared to Q3 17. Loan loss provisions decreased by 46% to €14m in Q3 18. Commission income rose by 6% to €51m in Q3 18. Net derecognition result (early loan repayments) declined by 75% to €5m for Q3 18 compared to Q3 17. Operating income decreased by 16% to €191m for Q3 18 compared to Q3 17. Administrative expenses were down by 11% to €107m in the same period. Pre-tax profit decreased by 15% to €70m for Q3 18 compared to Q3 17. The tax ratio was down from 38% for Q3 17 to 34% for Q3 18. AT1 interests were stable at €4m for Q3 18. The Basel 3 fully phased-in CET 1 ratio was 20.8% at end September 2018 versus 19.6% at year-end 2017. Aareal Bank confirmed its operating profit forecast range of €312m and €352m for FY2018 (increased in September by €52m due to the planned Düsseldorfer Hypothekenbank acquisition).
Aareal Bank announced today that it has reached an agreement to acquire all the shares in Düsseldorfer Hypothekenbank AG for c. €162m from the Association of German Banks. The residual lending volume of Düsseldorfer Hypothekenbank amounted to €533m as at 30 June 2018. Aareal Bank will not pursue any further strategic objectives with the acquisition and wants to commence an orderly run-down. Closing of the transaction is subject to regulatory approvals and is currently expected to take place in 2018. Aareal Bank has increased its original operating profit forecast of €260-310m for FY2018 to be in a range between €312m and €352m and EPS between €3.47 to €3.87 assuming that closing will take place in 2018.
Net profit attributable to shares decreased by 40% to €37m for Q2 18 compared to Q2 17 which had benefited from a one-off gain of €50m. Net interest income was down by 10% to €136m for Q2 18 compared to Q2 17. Loan loss provisions declined by 24% to €19m in Q2 18. Commission income rose by 4% to €51m in Q2 18 compared to Q2 17. Administrative expenses were down by 16% to €109m in the same period. Other operating income was €3m for Q2 18 compared to €55m in Q2 17 due to a positive €50m one-off contribution from a subsidiary’s reversal of provisions (Corealcredit Bank) against income. Pre-tax profit therefore declined by 43% to €62m for Q2 18 compared to Q2 17. The tax ratio came down from 38.5% for Q2 17 to 34% for Q2 18. RWAs decreased by 10% to €10.6bn in H1 18. The Basel 3 fully phased-in CET 1 ratio was 19.9% at end June 2018 versus 19.6% at year-end 2017. Aareal Bank confirmed its operating profit (pre-tax profit) target of €260m to €300m for FY2018.
Net profit attributable to shares increased by 3% to €39m for Q1 18 compared to Q1 17. Net interest income was down by 14% to €133m for Q1 18 compared to Q1 17. New is the item “derecognition gains” of €6m for Q1 18 compared to €10m for Q1 17. This item was previously part of interest income but needed to be reported separately from 2018 onwards in accordance with IFRS 9. Loan loss provisions were zero compared to €2m in Q1 17. Commission income rose by 4% to €50m in Q1 18 versus Q1 17. Administrative expenses declined by 8% to €128m in the same period. Pre-tax profit declined by 6% to €67m for Q1 18 compared to Q1 17. The tax ratio was unchanged at 34% for Q1 18. The Basel (estimated) IV core Tier 1 ratio was 13.5% at end March 2018 versus 13.4% at year-end 2017. Aareal Bank confirmed its operating profit (pre-tax profit) target of €260m to €300m for FY2018.
Preliminary net profit attributable to shares decreased by 4% to €191m for FY2017 compared to FY2016. Net interest income was down by 10% to €634m for 2017 compared to 2016. Loan loss provisions declined by 15% to €82m in 2017. Commission income rose by 7% to €206m in 2017. Administrative expenses declined by 7% to €511m in the same period. Pre-tax profit decreased by 10% to €328m for 2017 compared to 2016. The pre-tax profit includes a positive non-recurring effect of €50m in Q2 17 from a subsidiary’s reversal of provisions (Corealcredit Bank) which was partially offset by €24m in provisions. The tax ratio was 35% for 2017 compared to 36% for 2016. The RoE before tax was 11.9% for 2017 compared to 13.2% for 2016. The Basel 3 fully phased-in core Tier 1 ratio was 18.9% at end December 2017 versus 15.7% at year-end 2016. The regular dividend proposal per share increased from €2.00 for FY2016 to €2.50 for FY2017. Aareal Bank released target figures for FY2018. The operating profit (pre-tax profit) target is in a range between €260m and €300m and the EPS target is between €2.60 and €3.00 for FY2017. Aareal said, assuming the full implementation of new capital requirements (finalising Basel III – also known as “Basel IV”), the CET1 ratio was 13.4% at 31 December 2017, and thus significantly above regulatory requirements. Given persistent regulatory uncertainty, Aareal Bank currently considers a target CET1 ratio of around 12.5% to be appropriate. The bank intends to decide upon the appropriation of existing excess capital during the course of this year.
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In addition to highlighting the relatively attractive underlying conditions that prevailed in February, in this note we introduce our FY23 estimates. We believe that the latter helps to further highlight the attractive valuation and growth potential offered by the group, as well as the significant valuation discount that Plus500 trades on relative to its peers. We see the latter as inappropriate given the clear benefits of the group’s best-in-class platform, its scalable technology and agile marketing algorithms. We expect these factors to drive continued market share gains and superior financial returns, and as a result, we reiterate our BUY rating.
Companies: Plus500 Ltd.
Mercia has validated the model emphatically with the sale of Oxgene, the second-largest portfolio investment, for £30.7m. This is nearly double the carrying value and a £14.6m realised gain, equating to a 5x return/51% IRR. 3rd party funds also benefited. This underscores embedded value, prudent carrying values and the “Complete Connected Capital” model. An accompanying update points to strong underlying performance which drives a 56% FY21e adj. EBITDA upgrade and +13-15% in outer years. The shares trade at an unwarranted ~30% discount to our revised NAV (+12%) and a ~40% discount to our SOTP intrinsic value.
Companies: Mercia Asset Management PLC
UK railway privatisation, which was launched in the mid-1990s, has finally turned full circle: the Department of Transport has recently confirmed that its controversial railway franchise system will be scrapped. In this month's feature article, Nigel Hawkins, the Infrastructure analyst at Hardman & Co, examines the 25-year history of railway privatisation and chronicles its ups and its downs. The successes of railway privatisation, such as new rolling stock, are addressed, along with the many shortcomings, which included minimal vertical integration. With the winding up of the franchise system, the UK railway sector is effectively reverting to its former status as a nationalised industry, a shift started with the renationalisation of the collapsed Railtrack – later re-badged as Network Rail – in 2001.
Companies: ARBB BBGI CLIG DNL FLTA ICGT OCI PCA PIN PXC RECI SCE TRX SHED VTA YEW
Aviva released its 2020 figures, with an operating profit of £3,161m and an IFRS profit after tax at £2,910m up 9.2% yoy. The Board will propose a final dividend of 14p/share. The insurer announced new financial targets with at least $5bn of cumulative cash remittance, £300m of cost reduction and a debt leverage ratio <30%. This update was expected regarding the sale of many operations in 2020. Aviva plans also to become a net zero carbon emissions company by 2040.
Companies: Aviva plc
Regional REIT’s (RGL’s) Q420 DPS, in line with the company’s previous guidance, takes the aggregate FY20 DPS to 6.4p, and is supported by continuing strong rent collection. The company has previously indicated that it was targeting dividends to be fully covered by EPRA earnings and we expect this to be confirmed when detailed FY20 results are released on 25 March.
Companies: Regional REIT Ltd.
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Subject to EGM on 21st March. Rogue Baron plc have announced its application for admission to the AQSE growth market. Rogue Baron owns five subsidiaries, namely: Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC. The Company’s goal is to build each of its brands that makes them a buyout target. Deal size TBC an expected admission date 12th March 2021. Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE. Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers. Total revenues were US$64.3 million, US$81.9 million and US$102.0 million for the years ended 31 December 2018, 2019 and 2020, respectively. The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50 million to support Trustpilot's growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees. Timing TBC. In The Style, the e-commerce womenswear fashion brand with an influencer collaboration model, announces their intention to float on AIM. In The Style is a pure-play e-commerce fashion brand with a l customer base of women predominantly aged between 16 and 35. Founded in 2013, the group has delivered £35.4 million net sales and £3.6 million Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7 million for the nine months to 31 December 2019. Admission is expected to take place on or around 17 March 2021. Deal size TBC. Media reports video game firm, Catalis is mulling a London IPO, just over a year after being bought by a private equity firm. Catalis’s accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m. Deal details and timing TBC. tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo is expecting to release its IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: LND GDR GAMA SOLI SHED RLE CRU WRES SBI MNO
The £30.7m cash exit from Oxgene underlines management’s success in building a sustainably profitable specialist asset manager, delivering high levels of contracted revenue and providing a filtered pipeline of opportunities for Mercia’s direct investment portfolio. Based on progress to date, we believe Mercia will achieve its three-year strategic plan ahead of time (grow operating profitability, expand assets under management (AUM) to £1bn and ‘evergreen’ the balance sheet by end FY22). By the end of H121, AUM had risen to £872m (15% from FY22 target), with fee-earning funds under management (FUM) of £722m. Despite progress, Mercia’s shares continue to trade at a material 21% discount to net assets (0.79x) or a 30–35% discount when we include the third-party funds business (worth 4.9p at 3% of FUM). This is a substantial discount to its peers.
Exscientia has completed a $100m Series C financing, and Frontier IP has released a FY’21 trading update stating it remains “confident on the prospects” for FY’21 (June Y/E). Whilst, the pre-money valuation is undisclosed, Exscientia remains Frontier IP’s largest equity holding by value. Despite pressure for exits, the news clearly justifies Frontier IP’s strategy to maintain its holding in Exscientia, which has only been modestly diluted to 2.11% (from 2.27%). Fair value of Frontier IP’s portfolio last stood at £19.4m 30 June 2020, and today’s update is supportive of continued portfolio growth. We expect to see partial visibility of the financial impact of the fundraise, as with other recent fundraises PulsiV and Elute Intelligence, at interim results expected 24 March 2021. The Group currently trades on a NAV/share multiple of 1.2x. We think this multiple has room to expand with continued industry involvement, external funding and possible exit events. Shares continue to look compelling at this level.
Companies: Frontier IP Group Plc
SDLT Extension should support further sales at HQ
Companies: Palace Capital plc
tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: ADME NFC CHAR WHR MKA IXI MOS D4T4 ALS TERN
Urban Logistics REIT (“ULR”) has converted further pipeline with five new development assets across two sites in the Midlands secured for £23m GDC at 6.12% yield. Completion is not expected until late 2022/early 2023. This follows the acquisition of a distribution asset in Droitwich earlier this week (1/3) for £5.4m. This prompts no change to forecasts as we expect all capital to be deployed by Mar-21 year end. ULR trades at an attractive 3% discount to NAV with a 6% dividend yield – both FY22e, the first full year with all capital deployed.
Companies: Urban Logistics REIT plc
The Renewables Infrastructure Group - Proposed share issuance programme*Triple Point Social Housing REIT - 5.9% NAV total return in 2020GCP Student Living - Vaccines boost recovery prospects
Companies: Renewables Infrastructure Group
Today's news & views, plus announcements from SMDS, PSN, POLY, RIO, BIFF, SONG, HSX, PAGE, RLE, SHED
Companies: PSN RLE RIO
Today's news & views, plus announcements from BME, AV, SDR, RAT, MGGT, GFRD, SEIT, TYMN
Companies: Galliford Try Holdings PLC (GFRD:LON)SDCL Energy Efficiency Income Tst (SEIT:LON)
Today's news & views, plus announcements from MRW, BNZL, HICL, AGK, SEPL, SEIT, SDY, BGO, SHED
Companies: BGO SEIT SEPL
