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To realise value through exiting the investments over time, the Company invests in early (but not seed) or later stage investments in unquoted fintech businesses.
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My understanding is that IRR represents the internal rate of return. 87% is the return each year that the investment provided or £3m. The return is thus 9 x initial investment plus the increase of 87% annually on the internal return. In essence represents a 9 bagger in 3 years.
Few investors have a 9 bagger ever, let alone in a short time
It seems that Aberdeen (or whatever the new ridiculous spelling is) has bought Interactive Investor fo £1.5bn.
Looks like another AUG exit. Anyone know the value of AUGs stake?
https://tech.eu/brief/londons-seedrs-snapped-up-by-republic-in-75-million-deal/
The value attributed to II is reported in todays news. Since there are rumours either for an IPO or a bid, the book value and the realise value might be different. My figure of £47.7m was based on the hint of placing.
Very satisfactory to note the price rise today. Buy the rumour and sell the facts rings a bell.
Fintech has served me well for the last few years…. Adyen, Boku and Augmentum are in my portfolio which is structured for growth with risk set to High.
Fintech's going from strength to strength with govt support (CFIT funding just announced). Big Ron (and indeed AUGM) supportive.
https://www.standard.co.uk/news/uk/government-treasury-fintech-tech-nation-b964895.html
err I don't think so, more like all time high
It was also in the Sunday Times. FWIW, I suspect that the SP in AUGM will fall as a consequence/
I've been in this game a long time and more often than not, the total opposite happens from expectation. Think of things like an exploration company - the worst thing to happen is that they find whatever they are looking for..... game over.
The FT is reporting that Abrdn is going to make a £1.5bn takeover of ii. Current value of ii in Aug latest results was approx £850m. Very positive upside to Aug NAV.
News today of investment in Zopa.
A couple of days ago an investment in WeMatch was made. Not much in terms of cash, but odd not to have triggered a brief statement
Some fairly chunky sells last few days....
No idea at all, sorry. My guess would be that with the prospect of inflation, new startup businesses tend to put off from opening and in turn financial technology companies which provides vital cashflow for those business tend not to grow. Markets react harshly in bringing the share price for fast growing companies back to have caution which in turn is seen as removing froth even though none might be there.
Anyone have any thoughts about the catalyst for the latest dip? Seems to be quite a violent swing down.
Personally I am seeing this as a buying opportunity. There are plenty of companies in the portfolio which should imminently provide a catalyst for NAV uplift: ii (IPO), Onfido (IPO), Tide, Zopa (IPO).
I afded to my holding on Tuesday. SP has benn pretty perky this week
The most recent information I have is that Interactive Investor is the largest holding in AUGM portfolio and represents about 17%. As the mcap for AUGM is £280m in round figs, my back of fag packet maths, suggests the value of stake in II to be about £47m which is a 50% premium to the stated book value that you note.
The proposed float may mean that some of the seed capital is freed up for new investments but I would hope that it attracts investors in the same way that Hargreaves Lansdown did and becomes a cash cow.
I think it was valued at about 30m, they have 3.8% so 2b would be about 80m
Article in The Times today (below). A value of £1.5-2bn would be a huge boost to Aug. I think the carrying value in the latest Aug results was close to £900m. Interesting to see little market reaction today. Definitely plenty of upside still in Aug shares.
Interactive Investor holds audition for float adviser
August 20 2021, The Times
Interactive Investor has moved closer to a stock market flotation that could value it at £1.5 billion or more after asking bankers to pitch to advise it.
The platform, which counts 400,000 private investors among its clients, has held a beauty parade before appointing advisers to a float probably to take place next year, according to Sky News.
The Manchester-based company is one of the big three platforms for DIY stockpickers alongside Hargreaves Lansdown and AJ Bell and has made no secret of its ambition to float.
It would be the company’s second time on the London market. It listed on Aim, the junior market, at the peak of dotcom mania in February 2000, quickly fizzled out and was rescued by Australian Mutual Provident a year later. It then became the subject of a buyout backed by the private equity group JC Flowers, which still owns a 50 per cent stake.
Interactive has been a big beneficiary of both lockdown and booming stock markets. It won 32,000 new clients and an extra £3.6 billion of assets under management in the first half of the year, taking its total to almost £55 billion.
It has not disclosed profits but Sky quoted unnamed bankers who said it could be valued at £1.5 to £2 billion. Last year the company received a £675 million valuation when it issued new shares to buy the Share Centre.
Interactive bills itself as good for wealthier investors because it charges a flat-rate monthly fee regardless of the value of the assets held. Its average balance per client was £96,000 last year.
The company is headed by Richard Wilson, who has been a cheerleader for the rights of small investors and the need to give them full access to flotations. He has not disclosed his stake.
The irony of Augmentum's due diligence failing on a company providing due diligence services is killing me. Looks like a small hit, can't win them all!
DueDil stake was never disclosed as a discrete amount in accounts but rather lumped together in ‘other’. Was originally a £2m investment in 2018. It is unclear whether the stake has been written down in the past. Given the news that it has been merged at nil-value would imply that the writing has been on the wall for a while and given AUG conservative accounting I assume impact on NAV is negligible in the grand scheme of things. It’s a shame though as regtech is touted as a growth area.
It’s just interesting that there hasn’t been a portfolio update RNS. Equally the half year 21H1 numbers that came out of ii were very positive
How much was AUGM stake worth and what is likely impact on value/SP?
Missed this story that DueDil is merging with another company. Looks like Augmentum stake is being wiped out in the process. Interesting there has been no update to the market from Augmentum related to this.
https://www.altfi.com/article/8192_exclusive-data-group-duedil-to-merge-with-artesian-solutions-after-failing-to-raise-funding
Thanks Alas, all sorted now and SP moving up nicely ????
FeverClucker - if it is of any consolation, administration in HL is not great BUT, they are very good in ensuring that their clients are not disadvantaged. It might take a little while to sort it out, but I am sure that you will not need to seek redress for indemnity should you suffer financial penalty. If you can demonstrate a case to support dealing in shares, then advise the company through the secure message facility of your intention with the caveat that the size of bargain that you wished to execute would not allow the corresponding bargain as a balancing deal to be executed at a viable commission.
Thanks JJ - still waiting for mine no shares and funds still there! Shocking, called HL today they cant give me an answer other than they're looking into it!