Pollen Street Group (LON:POLN) Releases Earnings Results

Pollen Street Group (LON:POLN) released 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 Trading Up 0.5%

POLN stock opened at GBX 818 on Thursday. The firm’s 50-day moving average price is GBX 849.01 and its two-hundred day moving average price is GBX 833.46. Pollen Street Group has a 12-month low of GBX 690 and a 12-month high of GBX 972. The stock has a market capitalization of £483.45 million, a price-to-earnings ratio of 8.73 and a beta of 0.02.

Analyst Ratings Changes

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