Sequoia Economic Infrastructure Income

SEQI offers a high yield from a diversified portfolio of infrastructure loans…

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

Hardman & Co Insight: UK interest rates and “risk-free” gilts at their peak? Infrastructure stocks struggle

The share price performances of the nine Infrastructure Investment Companies (IICs) and of the 22 Renewable Energy Infrastructure Funds (REIFs) have been dire over the past year. Undoubtedly, the sharp rise in interest rates has presented the sector with serious challenges, especially since the yield on “risk-free” 10-year gilts has risen appreciably. Furthermore, the ongoing war in Ukraine and high inflation rates, from which many IICs and REIFs are partially ‒ if not wholly ‒ protected, contin

The Hardman & Co Monthly: August 2023

Feature article: UK interest rates and “risk-free” gilts at their peak? Infrastructure stocks struggle Executive summary Infrastructure/Renewable Energy Funds ► The share price performances of the nine Infrastructure Investment Companies (IICs) and of the 22 Renewable Energy Infrastructure Funds (REIFs) have been dire over the past year. Undoubtedly, the sharp rise in interest rates has presented the sector with serious challenges, especially since the yield on “risk-free” 10-year gilts has r

Hardman & Co Insight: Higher interest rates overshadow IIC/REIF prospects

Hardman & Co Research’s focus is on the nine quoted infrastructure investment companies (IICs) and on the 22 renewable energy infrastructure funds (REIFs), most of which saw their share prices fall during 2022, while the FTSE 100 rose by just 0.9%. In our Quoted UK Infrastructure and Renewable Energy – Prospects for 2023 publication, we have addressed the three key issues of recent months: higher inflation, extremely volatile power prices and rising interest rates.

First Quarter of 2020

We have knitted together the impact on the investment companies from what is now widely considered to be the most severe pandemic in a century. The collapse in asset prices over the latter part of March, brought the curtain down on an up-market that lasted more than ten years. In amongst this, there were pockets, such as the technology sector, that held up well. For many industries, the worst is still to come, as we brace ourselves for the sharpest contraction to global growth since the US great

Third Quarter of 2019

There was palpable shift in sentiment over the third quarter with the cautionary undertone perhaps best reflected by gold’s resurgence. Ongoing trade jockeying between the US and China did not help the mood and neither did the Argentine debt default in August. At the real economy level, manufacturing output has been trending lower across some of the major global economies.

Morning Note – 1 July 2024

A deeply undervalued specialist in private markets

Mercia is one of the largest investors in ‘regional’ (ex-London) UK growth businesses. Its primary focus is managing funds of around £1.6bn for third parties (FUM) in structures such as Venture Capital Trusts, EIS funds and funds for institutional investors. The business is scaling. FUM has more than doubled in two years. Record net flows exceeded £0.5bn in FY24. And growth is by far the highest among a London-listed peer group. FY24 revenue grew 18% y-o-y to £30.4m, EBITDA 7% to £5.5m, a margi

Chrysalis Investments (CHRY LN) - Interim results

Chrysalis Investments’ results for the six months to 31 March show good growth in NAV per share (up 9.5% to 147.46p) and highlight solid operational performance at the majority of its portfolio companies.

AEW UK REIT | Initiation: Proven record of value creation

AEW UK REIT plc (AEWU) is a UK real estate investment trust (REIT) with a difference: it is highly focused on value investment, acquiring mispriced assets and then maximising income and unlocking capital upside through asset management initiatives. Launched in May 2015, AEWU has paid dividends of 2p per quarter – the highest gross dividend payment in its peer group, equating to a current dividend yield of 9.2% – for the last 34 consecutive quarters (many peers cut their dividends during the pand

PANMURE LIBERUM: DF Capital: Cracking H1 with partial recovery on RoyaleLife to boot

Strong results, record AUM growth

Hardman & Co Monthly: July 2024

Feature article: UK life sciences needs more local institutional support to survive. For two years running, the Hardman & Co Healthcare index has declined, underperforming both the FTSE 100 and the FTSE All-Share indices. This is quite unusual for healthcare stocks. Apart from the general economic influences, which have made institutions more risk-averse, there was a common knowledge that several companies were in need of additional working capital; so, share prices were marked down in anticipa

DSW Capital+ (DSW, House Stock at 50p) - In line FY24A results

A sector growth-leader with an 8.5% yield

FY24 saw a 14% rise in AUM to £21.9bn on 31 Mar 24. This was the second highest AUM increase among a London-listed peer group. Post year-end, Polar has recorded a further 4% increase in AUM to £22.8bn on 14 Jun 24. Investment performance was the AUM booster in FY24, adding +£4.3bn or +23%, making Polar a runaway leader compared to other asset managers when it comes to investment returns. While its net flows were negative for the full year at -£1.6bn, this was around the median outflow rate of t

Target Healthcare REIT - Enhanced portfolio metrics and interest savings

Target Healthcare REIT has sold four of its care homes for £44.5m to the incumbent tenant, modestly ahead of the carried value. The homes have performed well since being acquired as part of the significant portfolio transaction in late 2021, but their sale enhances key portfolio average metrics such as age, floor space and unexpired lease term, has been completed at a lower yield than the portfolio average and enables the company to reduce exposure to more expensive debt.

Secure Trust Bank+ (STB, House Stock at 770p) - Focus on Real Estate Finance

The Merchants Trust - Termination of coverage

Edison Investment Research is terminating coverage on Oxford Cannabinoid Technologies (OCTP), Britvic (BVIC), Ultimovacs (ULTI), DFR Gold (DFR), The Merchants Trust (MRCH), PB Holding (PBH) and Biodexa Pharmaceuticals (BDRX). 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 website.

TR Property

TRY makes investing in real estate simple…

PCI Pal - Settlement of all patent litigation, net cash upgrade of +£0.8m

Following victory in the Court of Appeal and our net cash upgrade of +£1.1m on 22 May, PCI Pal has announced a confidential settlement that resolves the patent litigation with Sycurio and brings an end to all proceedings, which includes both the UK and US. Since the September 2021 allegations of patent infringement, PCI Pal has rigorously defended its position, and won a resounding victory in the UK High Court case in September 2023, followed by the Court of Appeal ruling in its favour in May 20

Private Equity: Stick or twist? Avoiding the ‘pig in the python'

After a period of record fundraising and with more than $1tn of ‘dry powder' on the sidelines awaiting investment, private equity (PE) has had a more difficult time in the past two years as inflation and interest rates have increased. The IPO market has been subdued following strong years in 2020 and 2021, challenging the traditional PE model, which relies on a steady cycle of exits in order to fund existing commitments and make new investments. One leading US private equity investor has likened