Pollen Street Group (LON:POLN) Announces Quarterly Earnings Results

Pollen Street Group (LON:POLN) announced its quarterly earnings data on Tuesday. The company reported GBX 33.30 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Pollen Street Group had a return on equity of 8.17% and a net margin of 47.90%.

Here are the key takeaways from Pollen Street Group’s conference call:

• Assets under management rose to £8.5 billion, while fee-paying AUM increased 18% to £5.5 billion. The £1.8 billion of raised but undeployed credit capital provides visibility for further fee-paying growth.
• Fund management revenue increased 22% on a like-for-like basis, and fund management EBITDA rose 73% to £16.1 million. Management said the asset manager remains on track to meet full-year consensus expectations.
• Private Credit Fund IV is nearly 50% deployed, with the credit pipeline doubling to £5 billion in the first half. The company said deployment momentum, borrower demand and resilient pricing remain strong despite changing macro conditions.
• The investment company’s return was only 3.4%, materially below target, primarily because the Shawbrook share-price decline created a 3.8% balance-sheet impact after its IPO-related mark-to-market accounting. Management characterized this as an exceptional issue, citing an underlying first-half investment return of 7.4% excluding Shawbrook and equalization effects.
• Pollen Street returned £25 million to shareholders in the first half, including £7 million of buybacks, and announced a further £17 million interim dividend. It also reported strong early support for the Hanover Square open-ended credit fund and expects to launch preparations for Private Equity Fund VI, targeted at €1.75 billion–€2 billion.

Pollen Street Group Price Performance

LON POLN opened at GBX 814.82 on Thursday. Pollen Street Group has a fifty-two week low of GBX 690 and a fifty-two week high of GBX 972. The stock’s 50-day moving average is GBX 849.01 and its two-hundred day moving average is GBX 833.46. The firm has a market cap of £481.57 million, a P/E ratio of 8.70 and a beta of 0.02.

Analyst Upgrades and Downgrades

Separately, Berenberg Bank reiterated a “buy” rating and issued a GBX 1,320 price objective on shares of Pollen Street Group in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of GBX 1,162.

About Pollen Street Group

Pollen Street was founded in 2013. It is a listed alternative asset manager dedicated to the financial and business services sectors. Pollen Street has complementary activities in managing third-party assets (as an asset manager) and on-balance sheet investments (as an investment company), delivering growth through dedicated private equity and credit strategies.