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Capital Markets Day

2 Mar 2022 07:00

RNS Number : 2994D
Honeycomb Investment Trust PLC
02 March 2022
 

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM), CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL

02 March 2022

Honeycomb Investment Trust plc("Honeycomb" or the "Company")

 

Capital Markets Day

As previously communicated, Honeycomb and Pollen Street will host a Capital Markets Day today at 10:30am GMT. A presentation will be published on the website ahead of the start.

Monthly Factsheet

Honeycomb announces that the Investment Manager's monthly factsheet for 31 January 2022 is now available on its website at http://www.honeycombplc.com.

Net Asset Value per Share

The Company announces that its unaudited Net Asset Value ("NAV") per share as at 31 January 2022 on a cum-income basis was 1,026.1 pence, based on a NAV of £361.8 million, and on an ex-income basis was 1,019.1 pence, based on a NAV of £359.3 million. The NAVs have been calculated by Apex Fund Services (UK) Ltd.

Honeycomb delivered a NAV return of 0.69% for the month, which is equivalent to 8.1% per annum.

NAV return was driven by strong risk adjusted yield of 9.1%. Net Investment Assets reduced in the month (£615m in December, to £579m in January) driven predominately by the repayment of a £30m structured facility as the business was acquired by a bank.

Comment from the Chairman

Combination with Pollen Street

On 15 February 2022, the board of Honeycomb announced that it had reached agreement on the terms of a recommended all share combination with Pollen Street Capital Holdings Limited, the parent company of the investment manager. Under the terms of the agreement, Honeycomb will acquire the entire issued share capital of Pollen Street Capital Holdings Limited in exchange for shares in the combined group such that the Honeycomb and Pollen Street businesses will be combined into a premium listed entity, owned by the shareholders of Honeycomb and Pollen Street. The combination is conditional on shareholder and regulatory approval. At announcement, shareholders representing c.56% of Honeycomb's issued share capital have given their support for the transaction.

As shareholders know, Honeycomb has been delivering strong and stable performance since inception in 2015, consistently delivering a net investment return of c.8%.

We feel privileged to have many supportive shareholders and thank them for their longstanding support.

I strongly believe that this is an extremely attractive opportunity for shareholders, as a combination with Pollen Street will accelerate growth and unlock value, delivering recurring income, retaining an attractive dividend yield (anticipated to be 6.5% and 6.6% in 2022 and 2023 respectively[1], on the basis of Pollen Street shareholders having agreed to waive dividends on 50% of consideration shares issued to them through 2022 and 2023) whilst presenting strong growth opportunities. The transaction is also expected to be EPS accretive in the second full year post closing for Honeycomb's shareholders[2].

Pollen Street is a highly successful and fast-growing alternative asset manager with:

- deep capabilities in both Private Equity and Credit with well-established and outperforming flagship strategies

- a business that is benefiting from strong tailwinds from investor demand in its products; and

- a business that is at an inflexion point with highly visible growth ahead

The Board conducted extensive due diligence and believes that the combination will generate substantial value for shareholders, both because of the attractive valuation on which Honeycomb is acquiring the Pollen Street business compared to listed peers in the alternative asset management sector, and because of the profile of the combined group going forward. In particular the combined group will have:

- a balance of recurring fee income and interest income that delivers an attractive and growing revenue profile; and

- exciting potential to accelerate high quality growth as Honeycomb's capital can be deployed to unlock a multiplier effect on capital raising and, in doing so, accelerate the growth of new strategies

- The combined business will benefit from a complementary set of investment management and balance sheet activities, with strong earnings growth. The investment portfolio will continue to be predominantly invested in high quality, diversified and low risk asset based direct lending investments, generating stable returns. The investment portfolio profile of the combined group is expected to remain in line with the investment profile of Honeycomb on a stand-alone basis.

The transaction creates a business with a rare combination of high growth and high income yield. It also presents strong benefits for shareholders from a public market perspective:

- increased investor universe providing opportunity to diversify the share register;

- scale and growth expected to attract greater analyst coverage; and

- possibility for increased liquidity on account of the larger market cap and potential future FTSE 250 inclusion.

A shareholder circular will be published in due course and sent to shareholders to provide further details of, and request shareholder approval for the transaction.

Buyback Programme

A separate RNS has been released detailing the Company's buyback programme

Robert Sharpe

Chairman

 

For further information about this announcement please contact:

Pollen Street Capital - Investment Manager

Matthew Potter / Julian Dale: +44 (0)20 3728 6750

Liberum Capital Limited - Joint Broker

Chris Clarke: +44 (0)20 3100 2000 

Cenkos Securities plc - Joint Broker

Justin Zawoda-Martin: +44 (0)20 7397 8900

Link Company Matters Limited - Corporate Secretary

hitcosec@linkgroup.co.uk 

 

1 Based on the Honeycomb share price of 967.5 pence on 14 February 2022 (being the last business day prior to announcement).

[2] The statement that the combination is expected to be EPS accretive should not be construed as a profit forecast and should not be interpreted to mean that the EPS in any future financial period will necessarily match or be greater than those for any preceding financial period.

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MSCUPUUGWUPPUUP
Date   Source Headline
21st Aug 20177:00 amRNSNet Asset Value - July 2017
21st Aug 20177:00 amRNSMonthly Update - July 2017
18th Aug 20177:00 amRNSHolding(s) in Company - TR-1 Notification
21st Jul 20177:00 amRNSNet Asset Value - June 2017
21st Jul 20177:00 amRNSMonthly Update - June 2017
21st Jun 20177:00 amRNSNet Asset Value(s) - May 2017
21st Jun 20177:00 amRNSMonthly Update - May 2017
5th Jun 201712:48 pmRNSHolding(s) in Company - TR-1 Notification
2nd Jun 20172:15 pmRNSResult of Annual General Meeting
31st May 20174:00 pmRNSResults of Initial Placing
25th May 201712:15 pmRNSPublication of Prospectus and Placing
18th May 20177:00 amRNSNet Asset Value - 30 April 2017
18th May 20177:00 amRNSMonthly Update - April 2017
28th Apr 20175:00 pmRNSNotice of AGM
28th Apr 20175:00 pmRNSAGM and Financial Statement Notification
28th Apr 20177:30 amRNSDividend Declaration - Period to 31 March 2017
28th Apr 20177:00 amRNSAnnual Report and Financial Statements - Dec 2016
25th Apr 201711:23 amRNSMonthly Update - March 2017
25th Apr 20177:00 amRNSNet Asset Value - March 2017
21st Mar 20177:00 amRNSNet Asset Value - February 2017
21st Mar 20177:00 amRNSMonthly Update - February 2017
28th Feb 20179:30 amRNSTransfer of shareholding
28th Feb 20177:00 amRNSDividend Declaration - Period to 31 December 2016
21st Feb 20179:59 amRNSMonthly Update - January 2017
21st Feb 20179:58 amRNSNet Asset Value - January 2017
19th Jan 20172:49 pmRNSMonthly Update - December 2016
19th Jan 20172:12 pmRNSNet Asset Value - December 2016
21st Dec 20164:19 pmRNSMonthly Update - November 2016
20th Dec 20169:41 amRNSHolding(s) in Company - TR-1 Notification
20th Dec 20169:38 amRNSHolding(s) in Company - TR-1 Notification
19th Dec 201610:32 amRNSHolding(s) in Company - TR-1 Notification
16th Dec 20162:57 pmRNSPDMR Shareholding
14th Dec 20167:00 amRNSNet Asset Value - November 2016
12th Dec 20165:16 pmRNSIssue of Equity - Results of placing
9th Dec 201611:46 amRNSProposed Placing
1st Dec 201612:40 pmRNSPublication of a Supplementary Prospectus
18th Nov 20169:54 amRNSMonthly Update - October 2016
14th Nov 20162:55 pmRNSNet Asset Value(s) - October 2016
10th Nov 20165:20 pmRNSDividend Declaration-Period End 30 September 2016
25th Oct 201612:15 pmRNSNet Asset Value - Change to NAV calculation basis
14th Oct 20161:20 pmRNSNet Asset Value(s) - September 2016
30th Sep 20163:18 pmRNSMonthly Update - August 2016
14th Sep 20163:04 pmRNSNet Asset Value(s) - August 2016
30th Aug 20166:06 pmRNSHalf-year Report
26th Aug 20163:29 pmRNSHalf-year Report
26th Aug 20163:19 pmRNSDividend Declaration
25th Aug 20165:42 pmRNSMonthly Update - July 2016
12th Aug 20164:56 pmRNSNet Asset Value(s) - July 2016
15th Jul 20163:15 pmRNSNet Asset Value - June 2016 replacement of 3538E
15th Jul 20162:18 pmRNSPortfolio Update - June 2016

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