Hits: 4

  • MorsesClub 20m shares printed in Morses Club last night at 138p. On a single figure PER and a yield of 6.3% I suspect the buyer will find a very satisfactory outcome.
  • Gresham House The Energy Storage fund announces a placing to raise £49.7m. Note that forecasts for the fund management group assume no increase in AUM this year.

Liontrust  – Trading Statement  

Share Price 772p

Mkt Cap £392m

Conflict Disclosure: No Holding

  • Statement AUM up 11% over the 3 months period to £14.1bn consisting of net inflows of 5.7% and 5.3% performance. 49% AUM is now economic advantage and 30% sustainable investment process. One year fund performance is generally strong too. Outlook is “well positioned”
  • Estimates Forecasts look for 10% PBT growth to March 2019 which looks rather too easy to achieve when you do 11% AUM growth in Q1.  
  • Valuation PER of 13.9X and yield of 4%. EV/AUM 2.5%.  
  • Conclusion The shares are cheap because of concentration risk. Opportunity.

Polar Capital – Trading Statement

Share price 580p

Mkt Cap £559m

Conflict Disclosure: No holding

  • Statement AUM up 6.4% over the 3 months comprising net inflows of 1.1% and 5.3% performance.
  • Estimates AUM is now back to where it was in September 2018 at £14.7bn. Pre performance fees to March 19 the company made £42.2m PBT which is forecast to be £53m for the year to March 20.
  • Valuation PER 13.6, yield 5.8%. EV/AUM 2.8%
  • Conclusion The shares are cheap on earnings forecasts that are about right. Liontrust has £14,097m AUM and can be bought for £392m while Polar has £14,712m and can be bought for £559m.

jeremy@charltonillingworth.co.uk