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If you've been holding since before the merger then I'm sorry for your losses.
Broomtree you sound like you dont know what you doing, maybe best to stick to index funds
Been a one way street since merger was a great IT
Have you just been ignoring the company's statements for the last 18 months?
Out at £6 just not sure how this new company format will work but suspect it won’t be in shareholders favour
Nasty shock this morning as HL have cancelled the old shares but gave me a new line showing zero value! Hoping this is resolved quickly as I need to watch how this affects the SP
UK 30yr yields bottomed on the 27th of December at 4%. Now they're back up to 4.638%. We're pinging around with those.
Whatever it was asda, it didn't last very long! Back down to earth with a bump.
I think just lower inflation and lower interest rate expectations. That means private equity is likely to be more successful, and the dividend yield on offer here just looks too high.
Not sure what the driver is for the current re-rate but whatever it is it's very welcome.
Moving to bi-annual dividend payment though, so we probably won't see another payment until Sep/Oct.
I note the March dividend is being brought forward to January prior to the newco being established. Happy days.
I hold a number of 'asset' managers. This RNS must be the first I've seen in since months of AUM rising.......
34adsaddsa;
Your make a pertinent point about honeycomb. I too feel pollen hijacked the certainty/focus/profitability of honeycomb into the uncertainty of asset mgmt/PE. A classic example of trying to be all things to all people and ending up as nothing to nobody. That said, I'm a fan of POLN, mainly because the heritage honeycomb assets are still throwing off cash (due to their origination time and rising rates) but also because I believe all asset managers are undervalued in the context that their are too many of them, with high fixed costs that are ripe for consolidation/economies of reducing such overhead in their increasing shrinking in the face of the popularity (rightly in my opinion) of ETFs to deliver equivalent performance at lower cost.
But then I am a contrarian/esoteric/patient investor. For now I'm holding firm, but if/when it transpires that the old honeycomb is CONTINUALLY propping up/flattering the PE/asset mgmt side, I'll exit.
I feel I'm in the minority here, but actually I'm quite comfortable as is.
I think that dividend target is very likely to be exceeded, primarily because interest rates have risen and repaid loans are being recycled into higher interest loans.
The tiny cut in 2017 is irrelevant. The dividend dropped in 2022 because of the merger and the issue of shares. The new PE side of the business wasn't really making any money so the FCF available from the investment assets couldn't cover as much dividend per share because there were more shares. That's why the new shares issued to old pollen street holders aren't receiving full dividends. They wanted to give time for the PE side of the business to produce the predicted FCF. The merger would probably been rejected without that.
"As part of the terms of the Combination, former Pollen Street Capital Holdings Limited shareholders waived dividends paid to them in 2022 and 2023 with respect to approximately 50 per cent of the shares issued to them by the Group. As such, the
dividend targets correspond to a dividend per share of 16p for each quarter for 2023 and at least 25.5p for each half year for
2024."
IMO old honeycomb shareholders got screwed over, but the shares crashed as a result and I don't invest through the rear view mirror.
I think the answer here is dilution - the company has been addings lots more shares during this time. I can understand why the private credit business is doing well atm, but not private equity/asset management. I don't trust the valuations on those businesses and will pass on any investment until it becomes clear. I don't see any compelling investment here, that's not already achievable (at higher/more consistent yield/better quality) in the US market. And one thing for sure is that nobody else here understands POLN.
Why is it that the dividend has been dropping steadily since ? e.g. the Liberum forecast is:
DPS (p) 2017: 84.5, 2018: 80, 2019: 80, 2020: 80, 2021: 80, 2022: 72, 2023: 64, 2024: 50.8
I can appreciate that the recent drop is due to the increased tax after changing from an investment trust to ordinary company? but it's been dropping for years... where's the benefit? why is this attractive to an income investor?
Pollen street differs quite meaningfully from a BDC following the merger of the management company and the investment trust. Investors now have partial ownership of a balance sheet of an investment assets (like a BDC/investment trust) but also an ownership stake in the management business (which manages external funds on behalf of institutions). I'd suggest looking at companies like ICG or Tikehau in the UK for a comparison or KKR in the US.
I've been digging deeper as the yield rises and becomes more attractive, but this company has always seemed very opaque to me. From what I can tell, they carry on two activities:
1) Private Equity
2) Private Credit
The credit business looks like a US Business Development Company (BDC), but it won't have the same tax advantages nor the pedigree. Some of the BDCs hold equity stakes to boost their returns, so POLN is not that unusual in that respect. Most BDCs yield around 10%, so this is not that unusual, but it seems to me that there is much less info on the precise makeup of the portfolio, non-accrual status, previous default levels etc, so I'm not super excited to invest here yet.
Hi damfori
I have lost interest in it.
Will it continue to pay dividends in the future as streamed interest?
Why stop being an investment trust?
Anyway good luck with your investments.
Hi SD235; I disagree. Yeah there is a lot of promotional waffle and image positioning, but what they do is there. Have a look at pages 67 and 68 of their 02/03/22 presentation for starters.
As for paying their dividends? Well page 66 gives a clue - the structured debt (the old Honeycomb) is valued there at £550 mill, yet provided receipts in the preceding 12 months of £266 mill.
Yes there is a lot of fluff on their website - astute investors will also disseminate the detail therein.
There is insufficient information on there site for a professional investor to understand what they do.
How do they pay all dividends as streamed interest?
Hence I didn't invest.
OK well I'm sorry if that's how it came across, it wasn't my intention to belittle you or any other investor on these boards.
It sounds like we have the same understanding then, after doing the exact same research. It's just that one of us likes to make the other feel smaller. Well done big man!