Equity Development

Time Finance plc

Results for H1 to end Nov ‘20 show Time’s recovery is well underway from an industry-wide, Covid-induced slump in good quality lending demand and spike in bad debt provisions. This coincides with a Group rebrand, which consolidates 5 years of buy-&-build success and offers a range of new competitive advantages. The share price of 25p is 30% off pre-pandemic levels with valuation multiples suggesting Time looks significantly undervalued in relation to peers.

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Jade Road Investments Ltd provides finance to Asia-based Small and Medium Enterprises (SMEs), a business segment materially underserved by the region’s traditional banks and investors. By targeting that broad subsector, Jade Road can access an immense market in which it can leverage both its capital, and its investment manager’s direct relevant experience. The proposition is at a relatively early stage of roll out, with cash in place to finance further investments from a burgeoning pipeline. The existing portfolio is reported to have navigated the challenges presented by COVID-19. New investment should enable Jade Road to ratchet up net returns and visible cashflows, which would support its plan to deliver progressive shareholder distributions.

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RUA Life Sciences Plc

On 30th December 2020, RUA reported that shareholders had approved resolutions regarding the placing along with a strongly oversubscribed Open Offer. RUA now start 2021 with the resources and mandate to accelerate the development of its products, where we anticipate reports of progress during the year. We have slightly increased our R&D and CapEx spend for FY 2022 to reflect this investment and the cash utilization. RUA’s issued share capital now comprises 22,184,797 shares and the increases in FY 2022 investment in its products, modestly change our valuation by about £2.0m to £113.2m for the Company, equating to 510p per share.

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