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

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

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 Pollen Street Group stock traded up GBX 6.83 on Friday, reaching GBX 825.83. 204,677 shares of the company traded hands, compared to its average volume of 258,721. The company has a 50 day moving average of GBX 848.33 and a 200 day moving average of GBX 833.49. Pollen Street Group has a 52 week low of GBX 690 and a 52 week high of GBX 972. The firm has a market capitalization of £488.08 million, a PE ratio of 8.81 and a beta of 0.02.

Analyst Ratings Changes

Separately, Berenberg Bank reaffirmed a “buy” rating and issued 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, Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of GBX 1,162.

Pollen Street Group Company Profile

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.