Pacific Horizon (PHI) generated a very impressive uplift in its NAV over the course of 2020. This reflects its focus on growth, and technology and biotech stocks in particular. These performed well as we attempted to adjust to life under the pandemic, thereby accelerating a number of structural trends. PHI provided an NAV total return of 86.1%, which eclipsed the return on the MSCI AC Asia Pacific ex Japan of 21.2%, the broader MSCI AC World of 12.7% and the average of its Asia Pacific sector peer group of 25.3%. PHI is the top-performing trust in this sector by a significant margin. Despite this stellar growth, PHI’s manager is not resting on his laurels. Emerging Asia still remains a high-growth and underresearched region, and he continues to focus on those themes he expects to do well over the next five years. For example, EV continues to be a significant theme and the manager has been increasing exposure to the commodities needed to deliver a greener future, but which the world is structurally short of, following long-term underinvestment.
Companies: Pacific Horizon Investment Trust
Pacific Horizon (PHI) generated a very impressive uplift in its NAV over the course of 2020. This reflects its focus on growth, and technology and biotechnology stocks in particular. These performed well as we attempted to adjust to life under the pandemic, thereby accelerating a number of structural trends. PHI provided an NAV total return of 86.1%, which eclipsed the return on the MSCI AC Asia Pacific ex Japan index of 21.2%, the broader MSCI AC World of 12.7% and the average of its Asia Pacific sector peer group (see page 23) of 25.3%. PHI is the topperforming trust in this sector by a significant margin. Despite this stellar growth, PHI’s manager is not resting on his laurels. Emerging Asia still remains a high-growth and underresearched region, and he continues to focus on those themes he expects to do well over the next five years. For example, companies exposed to the growth in electric vehicles (EV) continue to be a significant theme. The manager has been increasing exposure to the commodities needed to deliver a greener future, but which the world is structurally short of, following long-term underinvestment.
Pacific Horizon Investment Trust (PHI) aims to generate long-term growth by identifying the companies developing and benefitting from our future ways of living and transacting. Managers Ewan Markson-Brown and Roddy Snell at Baillie Gifford have built a portfolio concentrated in internet-related and technology companies, as well as those benefitting from the shift to online consumption, the development of electric cars and the expansion of middle-class consumption into Asia – where 50% of the world’s population lives. The managers have a bias to small and mid-caps relative to their peers and the index, and own one unlisted stock. The approach is highly active, with an active share of 83%; individual companies are allowed to grow to a high weighting as long as the managers think the growth can continue. Ewan and Roddy believe that we are nearer the beginning of the technological revolution than the end, and so there are small companies which could revolutionise the world ready to be found. The relatively diversified portfolio of 78 stocks means the managers can accept that some of their stock ideas won’t pay off. PHI has one of the best long-term track records in the AIC Asia Pacific sector. As we discuss in the Performance section, the trust has performed strongly relative to peers over the past five years. During a particularly strong run in 2016 and 2017, it was trading on a significant premium to par and regularly issuing shares. As markets have become more choppy – particularly since the outbreak of the coronavirus pandemic – the shares have fallen onto a 12% discount. PHI does not pay a dividend.
Moves by Pacific Horizon’s (PHI) manager Ewan Markson-Brown to re-position the portfolio by lowering the allocation to technology, and excellent returns todate from stock picks made in 2018, are paying off. PHI is the best-performing Asia Pacific fund in net asset value (NAV) terms over the year-to-date. Coming off a poor 2018, which saw sentiment turn against China and technology, the portfolio is now more diversified with a greater focus on a newer wave of growth companies.
Moves by Pacific Horizon’s (PHI) manager Ewan Markson-Brown to re-position the portfolio by lowering its allocation to technology stocks, and excellent returns to-date from stock picks made in 2018, are paying off. PHI is the best-performing Asia Pacific fund in net asset value (NAV) terms over the year-to-date. Following a poor 2018, which saw sentiment turn against both China and technology (areas where PHI has significant exposures), the portfolio is now more diversified with a greater focus on a newer wave of growth companies.
After two years of strong performance, Pacific Horizon (PHI) has suffered a reversal of fortune over the last three months. Sentiment swung against both China and the technology sector, with savage share price falls in some areas. However, this reversal of fortune may prove to be short-lived if China and the US can agree a trade deal.
After two years of strong performance, Pacific Horizon (PHI) has suffered a reversal of fortune over the last three months. Sentiment swung against both China and the technology sector (both significant portfolio weights for PHI), with savage share price falls in some areas. However, it is possible that this reversal of fortune may prove to be short-lived, if China and the US can agree a trade deal.
Investors have become increasingly aware in recent years of the rich pickings which can be found among companies which are yet to see an IPO. Indeed, statistics show that the range of companies which have already listed on a stock exchange are less and less representative of all of the growth opportunities which exist in an economy. Investment trusts have been quick to respond to this trend, and an increasing number have come to market in recent years looking to invest into unquoted, private companies. Certainly, there are success stories – witness Scottish Mortgage’s investment in Alibaba way before it IPO’d. Naturally, examples like this can lead to investors worrying about missing out and, without addressing the private company investment universe, clearly investors are limiting themselves to only a sub-set of the complete opportunity set. For many investors the worry is that the companies they are ignoring, arguably, have the best long-term wealth creating characteristics. However, there are risks involved in unquoted stocks, and before getting carried away with the new trusts targeting them, it is worth bearing in mind that listed private equity sector, within which many trusts have demonstrated strong returns over various cycles, has for some time been focused exclusively on this area.
Companies: SMT PHI USA AUGM ICGT SLPE NMCN
Pacific Horizon is a highly active portfolio of Asian equities selected for their long-term growth potential. The managers, Ewan Markson-Brown and Roderick Snell, look for companies with sustainable competitive advantages, which are often embedded in intellectual properties or new technologies. The company invests half its assets in the technology sector, with significant weightings to other industries expected to benefit from growing middle-class consumption in China, in particular. China including Hong Kong is the largest country allocation and the trust is focused on North Asia, with South Korea and Taiwan also significant weightings. The trust had a barnstorming 2017 as its growth style came into favour and technology stocks in Asia led the markets. Over the long run it has now significantly outperformed its open- and closed-ended peers as well as the regional benchmark. Gearing is limited, and the managers aiming for long-term outperformance from long holding periods. They are prepared to hold on to stocks through rough macro-economic environments if they think the fundamental story is intact. The trust is now trading on a slight premium after sentiment towards the region and the strategy rapidly improved last year. The valuation metrics on the underlying portfolio are also high, although Ewan and Roddy believe this is because the numbers don’t reflect the growth potential in their portfolio.
Being a huge but emerging economy, China is a much larger part of global stockmarkets and GDP than is reflected in the main global indices. As a result, many investors are structurally underexposed to one of the fastest growing parts of the world. The inclusion of A-Shares into the main MSCI indices in May allows investors outside China to invest in Chinese equities easily for the first time, which may have consequences for this trend. The opening up of Chinese markets to foreign capital may lead to an increase in liquidity and interest in the stockmarket.
Companies: JCGI PHI FCSS ATR
Pacific Horizon (PHI) has benefitted strongly as both the Asia ex Japan region and technology stocks, to which PHI has a significant exposure, have rallied. This has seen it move up the competitor peer-group rankings so that it is first and second, in terms of NAV total return, over one and three years respectively.
EPE Special Opportunities saw a dramatic rise in its NAV as its largest holding, Luceco, IPOd. Alternative Liquidity’s discount narrowed a little as its share price rose after it announced an increase in its NAV. One of Polo’s investments won a court case and another’s gold mine commenced production. Menhaden’s discount narrowed. India Capital Growth had a good month, we published a note on it. It, like most of the funds on these lists, was a beneficiary of weak sterling. The Brazilian market hit a four year high during October as investors remain optimistic about a recovery in its economy. AXA Property said it hopes to sell its remaining portfolio in coming months.
Companies: HINT IGC PHI
Pacific Horizon’s (PHI)’s performance has started to improve over the past few months, yet the manager thinks that there is still considerable potential for the portfolio. He believes that some of the themes that he is focusing on could radically alter all our lives and that many Asian companies will be at the forefront of this change.
Pacific Horizon (PHI) is unashamedly a growth fund and its Asia-focused portfolio has significant overweight exposures to technology and biotechnology. However, it would appear that, investors are shying away from Asia because of weak Chinese growth and are seeking safety in defensive stocks for the same reason. Perhaps it is not surprising that PHI has underperformed both its comparative index and its peer group, and its discount has widened. PHI is a fund that may be out of fashion but could perform well in an environment where investors are less risk averse.
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Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April. Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Due early May, musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.
Companies: KIBO MTW GWI MTR DUKE ITM GDR MSMN CMCL PTRO
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are familiar. The belief that the roll-out of the vaccine and some relaxation of lockdown limitations will lead to a significant economic recovery, compared to the collapse seen in the first half of 2020, due to lockdowns. Indeed, the recent economic picture is becoming more optimistic than previous expectations. According to the ONS, the economy grew a little more than initially estimated in Q4 last year. This means GDP for 2020 as a whole contracted by 9.8%, revised up marginally but still the worst contraction on record. Markets, in general, have focused upon the potential scope and extent of the recovery. The sectors and stocks that have outperformed have been seen as ‘recovery’ plays with a rotation from stocks seen as ‘lockdown’ winners into those set to benefit from the ‘unlocking of society’ and/or exposed to the consumer. We expect 2021 will continue to be a “stock-picker’s” market. The sharp increase in the household savings ratio in Q4 highlights the scope for a recovery driven by expenditure. As further lockdown limitations are lifted, evidence of this growth will help to underpin the more optimistic outlook for Q2 and beyond.
Companies: AMYT ARBB BPC BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
In line with the goal to transition towards becoming a global, multi-asset fintech group, Plus500 has entered the fast growing, but under-penetrated, US retail trading market in futures and options on futures through the acquisition of Cunningham Commodities and Cunningham Trading Systems (CTS) for c.$30m in cash. Being a regulated Futures Commission Merchant (FCM) the deal gives Plus500 immediate access to a retail market that is estimated to be c.$2bn globally. We view the acquisition, which will be earnings accretive in its first full year, as extremely attractive that should deliver a substantial opportunity to leverage the group’s best-in-class technology in enabling market access to a large US retail investor base. We leave our estimates unchanged until the completion of the deal, expected in 3Q21, but clearly there is upside risk to our FY22 and FY23 forecasts. We also maintain our BUY rating and TP of 2090p, implying 40% upside.
Companies: Plus500 Ltd.
What’s new: Full year trading update reveals full year results on 15 June will be “ahead of all analysts’ forecasts”. Good momentum has continued into the year to 31 March 2022. 35% rise over last 12 months in AUM to £9.0bn on 31 March 2021; - Net inflows added £755m, with 2H net inflows of £427m 30% higher than 1H net inflows of £328m; annualised growth rose from 10% to 11%; - Market movements added £1.5bn or 22% (i.e. outperforming WMA); - From 31 March 2020 the WMA balanced index rose 19% to 4819; - Since 1 April 2021 the WMA balanced index has risen 3% to 4961; 3.3% rise in Paradigm Consulting member firms to 407 (2020: 394), with 2H rise higher than 2.5% in 1H; 4.4% rise in Paradigm Mortgage firms to 1,612 (2020: 1,544) with 2H rise higher than 3.0% in 1H; - increase in market activity in 2H helped by stamp duty holiday; - 10% rise in gross lending to £11bn (20% rise in 2H to £6bn); £16.9m of net cash (30 Sept 2020: £13.3m).
Companies: Tatton Asset Management Plc
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Darktrace plc. Announcement of Intention to Publish a Registration Document and Potential IPO on the main market of the London Stock Exchange. Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Timing TBA musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51m) will be used to fund the Acquisition. Due 19 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.
Companies: GAL AXS IDH GWMO AGL YEW INFA HE1 PPC CASP
We expect Real Estate Investors to return to growth in FY21 (+6% total accounting return), barring any major disruption to the roadmap out of lockdown. The majority of returns will be delivered by dividend income, underpinned by solid rent collection >90%. Vacancy may increase further near term, but any confidence returning to the West Midlands property market could see 2021 become a tale of two halves. Net LTV should reduce for completing sales, also helped by better sentiment and filling voids. A 31% discount to spot NAV looks attractive given the relative security of income that supports an 8% prospective dividend yield for FY21, and a business returning to TAR growth.
Companies: Real Estate Investors plc
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April. Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Due early May. musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.
Companies: ADME RTC SAV DFCH HUW TEG ANIC KOO MIRI SPSY
Trident Royalties Plc (AIM: TRR) has, this morning, provided an update on the Lake Rebecca Gold Project over which it holds an uncapped 1.5% NSR. The owner of the project, Apollo Consolidated, has released an updated mineral resource estimate increasing the indicated resources by 50% to 815,000oz of gold. The combined optimised and pit-constrained Lake Rebecca resource now stands at 1.105 Moz.
Companies: Trident Royalties Plc
Tatton expects earnings to be ahead of market expectations: we upgrade FY21e adj. EBITDA by 10%. This is the result of strong FuM growth in H2 as well as sustained mortgage lending – contributing to the upgrade equally. FuM is touching £9.0bn with improving flows and positive performance. There is positive earnings momentum in outer years from higher FuM and we upgrade by +10% in FY22e, but remain more cautious further out (FY23e +4%). Tatton is sustaining an impressive trajectory, adding £2bn from net inflows in 2yrs. We see further penetration into the existing adviser base as a key opportunity and, given the size of this opportunity, believe the premium 22x Mar-22e PER rating is warranted.
Ahead of results for the year ended 31 March 2021 (FY21), due in June, Palace Capital (PCA) issued a trading update on continuing robust rent collection, further disposals of non-core assets, and perhaps most important of all, the completion of the flagship Hudson Quarter (HQ) development in York, on budget, later this month. We expect HQ to be a significant driver of returns and deleveraging over the next two years.
Companies: Palace Capital plc
AuM grew by 5.1% to £30.9bn (vs. N+1Se £31.5bn) in Q4. Net inflows were sustained at £958m, with complementary £543m positive performance. Sustainable hit the £10bn milestone. AuM is already up a further 5% to £32.5bn in the few weeks of Q1’22 so far. We leave our FY21e forecasts unchanged. Unwinding some excessive prudence in costs drives upgrades: +3% EPS in FY22e and +5% EPS in FY23e. A 14.8x FY22e PER reflects a sustained growth trajectory, but doesn’t reflect upside should LIO deliver distribution synergies in newer funds.
Companies: Liontrust Asset Management PLC
CLS has continued to achieve high rent collection rates across the business with 95% received for the current quarter. Overall for Q1 2020 CLS has now received 98% of rents due. This outturn is comfortably ahead of collection levels achieved by a number of office-focused peers. The shares trade on a c.25% discount to spot EPRA NDV, offering a prospective c.3.3% dividend yield, compared to the UK real estate sector at a c.9% spot NDV premium. In our view this is too cheap and we reiterate our BUY rating.
Companies: CLS Holdings plc
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April. Darktrace plc. Announcement of Intention to Publish a Registration Document and Potential IPO on the main market of the London Stock Exchange. Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Timing TBA musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51m) will be used to fund the Acquisition. Due 19 April. NFT Investments plc is an investment company that specialises in non-fungible tokens (NFT). Has applied for admission to the Access segment of the AQSE Growth Market. No funds being raised. Due 16 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April. 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. Due 27 April.
Companies: KIBO ROCK VRCI K3C TOU ADT PCA ATYM IOM MJH
In these six short videos Harworth CEO, Lynda Shillaw, discusses the Harworth business model, her impression of the Company since joining as the CEO in November 2020, how the investment portfolio has grown in recent years and the strategy behind the acquisitions, how the recovery in housebuilding activity has helped the sale of 'oven ready land', the major development schemes in the portfolio and what to expect from the review of the business.
Companies: Harworth Group PLC
The past year has been highly successful for Deltic. The key highlight was the irrevocable decision by the Shell/Deltic JV at the end of March to drill the Pensacola Zechstein prospect. This decision was an important validation of Deltic’s technical capabilities. We would also identify three other important developments. These are the upgrade to the chance of success on Selene, the de-risking of the Cupertino and potentially the Cortez prospects and the award of six licences under the UK’s 32nd Licencing Round, including one jointly with Shell. Deltic now believes it has the largest exploration acreage in the prolific Carboniferous sandstone and Permian Zechstein fairway of the SNS (Southern North Sea Basin). Over the next 18 months the potential for positive news flow is excellent. Pensacola is scheduled to be drilled by Shell in May 2022 and we believe Selene will follow shortly thereafter. Further farm-outs are possible.
Companies: Deltic Energy PLC
