Flow Trophy

  • With Hargreaves results yesterday the June reporting is complete so the flow trophy can be awarded for the best flows in the quarter to June. The picture is shown on the charts below.
  • Liontrust can step up onto the stage for the second quarter in a row having snatched the trophy back from Polar 6 months ago.  The other award can be collected later by Miton.

Equals Group – Acquisition

Share Price 117p

Mkt Cap £193m

Conflict Disclosure: No Holding

  • Acquisition Hermes FX is acquired for £2m in cash. The founder of Hermes is joining Equals group and subscribing for 1m shares at the current share price of 117.5p/share.  With revenue of £1.8m and PBT of £0.6m this represents 1.1X revenue and 3.3X PBT. Nice price.  The company provides FX to a predominantly corporate client base.
  • Estimates With £10m PBT forecast for Dec 19 and £14m the following year this looks to be c. 5% earnings enhancing.
  • Valuation FY 19 PER 18.4 before earnings enhancement. The company had cash of £7.9m at Dec 18.
  • Conclusion Very useful acquisition. This company will do well and for those that can’t bring themselves to pay 27X for AlphaFX it is a good alternative.  

jeremy@charltonillingworth.co.uk