Pollen Street Group (LON:POLN) Issues Earnings Results

Pollen Street Group (LON:POLN) posted its quarterly earnings data on Tuesday. The company reported GBX 33.30 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

Shares of LON:POLN opened at GBX 818 on Thursday. The company’s 50 day simple moving average is GBX 849.01 and its 200 day simple moving average is GBX 833.46. The stock has a market capitalization of £483.45 million, a price-to-earnings ratio of 8.73 and a beta of 0.02. Pollen Street Group has a 1 year low of GBX 690 and a 1 year high of GBX 972.

Analysts Set New Price Targets

Separately, Berenberg Bank reiterated a “buy” rating and set a GBX 1,320 target price on shares of Pollen Street Group in a research report on Wednesday. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average 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.