Secure Trust Bank PLC

Secure Trust Bank PLC

Anexo Group plc

DF Capital Holdings plc

finnCap Group plc

Oberon Investments Group is a wealth management & planning, private ventures and corporate advisory boutique. A recently acquired majority stake in a fintech/custody business is not yet reflected in the valuation, in our view. Oberon was established in 2018 and listed on the ASE in 2021. Intensive investment in challenging markets has created a differentiated business model, positioned well in a consolidating sector. Investment is driving impressive growth in funds under management & administration, and in revenue, which should convert to strong EBITDA growth in FY25E.

Initiating coverage: A unique proposition

Oberon Investments Group plc

Anexo has announced impressive H1 22 results, with 42% revenue growth and 53% PBT growth underpinned by strong demand in the Credit Hire business and a doubling of revenue and profit in the Housing Disrepair division. Continued investment in the Legal Services division resulted in 20% growth in cash collections. The Board has highlighted that the emissions opportunity warrants significantly increased investment and that shareholders’ interests would be better served by Anexo paying an annual dividend after announcement of FY22 results. Our 1.5p dividend forecast for FY22 is unchanged. Reductions in PBT and EPS for FY22 (-5%) and FY23 (-6%) reflect a lower year-end vehicle count in Credit Hire and higher finance costs, partially offset by revenue upgrades in Housing Disrepair.

A changing business model

Against a background of continued economic uncertainty, DF Capital has today published an encouraging trading update, demonstrating strong growth in new loan origination, loan balances and loan facilities. The company appears on course to achieve our 2022 forecast loan book growth of 80% to £449m. DF Capital will provide a full update in its interim results release scheduled for 20 September.

Trading update underpins 2022 loan book forecast

finnCap announced this morning a proposed new CEO and the appointment of new directors. Sam Smith, finnCap’s CEO, has announced her intention to step down from the position and move into an advisory role within the group. John Farrugia, currently Managing Partner of finnCap Cavendish, will become a director of the group and then CEO after Sam Smith steps down.

Change of CEO and appointment of new directors

Ahead of today’s AGM, Anexo has issued a confident trading statement covering the first four months of FY22. The update follows last month’s announcement of strong FY21 results, including a 53% growth in pre-tax profit to £23.7m, underpinned by a 36% revenue increase. The investment made by Anexo generated strong growth in 2021, which has continued into the first four months of 2022.

Investment continuing to pay off

Anexo has announced a strong set of results for FY21. Revenue of £118.2m was 8% above our forecast and underpinned 53% pre-tax profit growth to £23.7m. Management’s decision to invest in challenging markets is reaping rewards. The Credit Hire and Legal Services divisions produced strong results and the Housing Disrepair Team has had a strong start.

The rewards of investment

Following a positive trading update, finnCap has made an interesting move into a fast-growing advisory market, taking a 50% interest in Energise, a Net Zero and sustainability consultancy. The £2.1m consideration comprises £1.9m cash and 902,090 new finnCap shares. The shares will be admitted on or before 29 April, after which finnCap will have 180,818,177 shares in issue. Of the shares issued, 50% are subject to a 12-month lock-up and 50% to a 24-month lock-up. The impact of the investment will be incorporated in new FY23 forecasts when FY22 results are announced in July.