Smithson

SSON’s historically wide discount may offer a good entry point for long-term investors…

Smithson

SSON’s discount may offer an opportune entry point for quality focused, long-term investors…

Smithson - Overview

Smithson Investment Trust (SSON) offers investors a concentrated portfolio of global small- and mid-cap companies. Run by lead portfolio manager Simon Barnard and assistant portfolio manager Will Morgan, SSON follows a similar investment philosophy to many of the strategies managed by Fundsmith, focussing on companies that demonstrate strong returns on capital, and which through their sustainable long-term earnings growth and profitability can reliably convert these into cash. The trust’s small-

Smithson - Overview

Utilising the same investment approach as the well-known Fundsmith Equity OEIC, Smithson Investment Trust (SSON) focusses on opportunities in small and mid-caps across the globe. The trust targets companies with market caps of between £500m to £15bn, utilising the closed-ended structure to allow them to better access less liquid companies that an open-ended fund might struggle to hold at acceptable levels of portfolio liquidity. The lead manager of SSON, Simon Barnard, looks to build a concentra

Smithson - Overview

Utilising the same approach as the successful Fundsmith unit trust, Smithson (SSON) differs from the larger fund in focusing on global small and mid-caps, defined as those with market caps between £500m and £15bn. Smithson owns a concentrated portfolio of just 29 holdings, aiming to buy quality growth companies and hold them for the long run. The managers seek to only invest in what they deem to be ‘high quality’ companies, typically holding very strong market positions and high brand loyalty.

Class of 2018... Update

Last year set new records for the investment trust sector, with launches from Baillie Gifford, Fundsmith and Mobius Capital Partners amongst others adding to assets which reached a record of £189bn by the autumn. We look at the new funds which came to market and examine the progress of the most interesting so far…

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

Bluefield Solar Income Fund – Fundamentals shine despite discount

The manger comments that, in common with the other trusts in the renewable energy sector, the last six months have continued what has been a challenging period for the Bluefield Solar Income Fund (BSIF). It adds that the trust’s ongoing fundamental performance has failed to reverse a steady slide in its share price which began back in May 2023. Despite this, it says the company has continued to deliver solid NAV growth and market-leading shareholder distributions thanks to a range of contractual

LSL Property Services (LSL LN) - Transformation & market recovery

2023 results are, as indicated in its February pre-close update, “slightly ahead of market expectations”. Current trading continues to improve, with 1Q24 underlying operating profit up yoy, “reflecting the benefits of the Group’s transformation programme completed in 2023 as well as improving market conditions.” With net cash of £35m at end 2023, the Board approved 7.4p final DPS and £7m buy back.

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: PensionBee: Strong start to the new financial year

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

LIBERUM: NewRiver: Q4 trading update: Continued operational momentum

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.

Witan

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

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

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