abrdn UK Smaller Companies Growth Trust - Relative performance getting back on track

abrdn UK Smaller Companies Growth Trust’s (AUSC’s) managers, Abby Glennie and Amanda Yeaman, are looking forward to further improvement in the trust’s relative performance, as investors’ focus is now more on company fundamentals rather than macroeconomic developments. The managers are continuing to use the Matrix, a proprietary screening tool, to search for companies exhibiting high-quality, growth and positive momentum features. Despite a difficult period of performance during 2022, when rising

abrdn UK Smaller Companies Growth Trust - Performance setback providing good entry point?

abrdn UK Smaller Companies Growth Trust (AUSC) is managed by Abby Glennie and Amanda Yeaman. The strategy of using the proprietary Matrix screening tool to search for stocks that fulfil strict quality, growth and momentum criteria has proved very successful over the long term but has been challenged since the start of 2022, as macroeconomic factors rather than company fundamentals have driven stock markets. Despite their frustrations, the managers are sticking with their tried-and-tested strateg

abrdn UK Smaller Companies Growth Trust - New lead manager, same proprietary process

abrdn UK Smaller Companies Growth Trust’s (AUSC’s) lead manager is Abby Glennie following the retirement of Harry Nimmo at the end of 2022. She had been the trust’s co-manager since mid-November 2020 and had worked closely with Nimmo since January 2016; Glennie manages the fund with investment director Amanda Yeaman. There is no change to the investment process, which has proved successful over multiple market cycles. Stocks are screened using the proprietary Matrix to highlight which companies

abrdn UK Smaller Companies Growth Trust - End of an era but successful strategy remains

abrdn UK Smaller Companies Growth Trust (AUSC) is managed by Harry Nimmo (since September 2003), who has announced his retirement at the end of 2022, and Abby Glennie (since November 2020). Glennie will become lead manager supported by existing team member Amanda Yeaman. There will be no change to the successful long-term process where stocks are screened using the proprietary Matrix, seeking companies that fulfil the managers’ strict quality, growth and momentum criteria. AUSC has experienced a

abrdn UK Smaller Companies Growth Trust - Sticking to the successful long-term strategy

abrdn UK Smaller Companies Growth Trust (AUSC) is managed by two of abrdn’s small-cap specialists: Harry Nimmo (since September 2003) and Abby Glennie (since November 2020). The trust has a long-term record of outperformance versus its reference index, with the managers following a clearly defined focus on quality, growth and momentum stocks, which means they consider that it is likely to underperform when cyclical/value stocks lead the market. There is a high level of economic uncertainty in th

Standard Life UK Smaller Companies - Success from delivering ‘what it says on the tin’

Standard Life UK Smaller Companies Trust (SLS) has two managers, Harry Nimmo and Abby Glennie at abrdn (formerly Aberdeen Standard Investments); therefore, a succession plan is in place should Nimmo choose to retire. They are positive on the outlook for UK smaller-cap stocks, which is reflected in the trust’s higher level of debt compared with an ungeared position 12 months ago. The managers are encouraged by SLS’s very strong relative performance in recent months as investors have once again gr

Standard Life UK Smaller Companies - Managers bullish on the outlook for the trust

Standard Life UK Smaller Companies (SLS) is managed by Harry Nimmo and Abby Glennie at Aberdeen Standard Investments (ASI). They are positive on the outlook for UK small-cap stocks given the start of a new economic cycle. The managers are encouraged that several investee companies are issuing positive trading statements and reinstating their dividends, and while valuation is a secondary consideration they note that several of the trust’s holdings are currently trading on inexpensive valuation mu

Standard Life UK Smaller Companies - Matrix driving continued outperformance

Standard Life UK Smaller Companies (SLS) manager Harry Nimmo is very bullish on the outlook for UK small-cap stocks, with the proviso that Brexit presents a near-term risk. He notes that despite current challenges due to the coronavirus, many companies are trading above expectations and there are now only a handful of SLS’s portfolio companies that are not paying dividends. The manager is comfortable with the trust’s ability to maintain its own dividend payments and is hopeful its valuation will

Morning Note – 22 April 2024

Benefits of scale set to materialise

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

International Public Partnerships - Consistently and responsibly delivering

International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from th

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.

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

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

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

Witan

Business as usual for WTAN’s executive team, while the board reviews investment management arrangements…

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.

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

H&T Group (HAT): Core franchise build, short-term retail noise

In our 15 March 2023 initiation, 'Pawnbroking royalty, with strong, profitable growth', and subsequent notes, we have highlighted the strong market for pawnbroking and why H&T, as the market leader, is uniquely placed to take advantage of these opportunities. These results reconfirmed both, with the pledge book up 28% and net pawnbroking revenue up 36%. Like many in the retail space, H&T faced the challenge of customers focusing on lower-value, lower-margin items in the key run-up to Christmas 2