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Hardman & Co

Research from Hardman & Co

Investment research on quoted companies and funds

Hardman & Co is a multi-disciplinary financial consultancy and investment research firm, employing highly experienced analysts and professionals with a broad range of capital markets expertise. Our clients are public and private businesses as well as fund managers, ranging from start-ups to £1 billion+ market capitalisations. Hardman & Co offers corporate research & consultancy, serving the needs of both public and private companies. We produce gold-standard research with a global reach for trading and investment companies, as well as providing market commentary and analysis. In addition, we carry out a number of bespoke investment-related assignments, including due diligence on bond listings, assessments of private company valuations and other corporate advisory services. We engage with the market through traditional and digital media, offering illuminating video content on corporate management strategy, results communication, interviews and in-house sector discussion.

Equity Bottom-Up

Chesnara PLC services its life insurance business.  The Company services a book of primarily non-linked term insurance or unit-linked endowment policies and does not issue new policies.  One or more of Chesnara's subsidiaries issues new insurance policies.

<ul><li>Chesnara has announced its 2023 results.</li><li>Positive returns from equity markets and gains from acquisitions in the first half were somewhat offset by adverse changes to operating assumptions in the second.</li><li>Economic Value profit of £59.1m marked a good turnaround from a loss of £85.1m in 2022.</li></ul>

Chesnara has announced its 2023 results.Positive returns from equity markets and gains from acquisitions in the first half were somewhat offset by adverse changes to operating assumptions in the second.Economic Value profit of £59.1m marked a good turnaround from a loss of £85.1m in 2022.

Chesnara (CSN): Good 2023 results set platform for future progress

Tissue Regenix Group PLC is a medical technology company.  The Company manufactures replacement body parts from biological animal materials.  Tissue Regenix produces a vascular patch using porcine pericardium.

<ul><li>TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone (BioRinse®).</li><li>It has a broad portfolio of products used in biosurgery, orthopaedics and dental markets.</li><li>Investment in tissue processing, manufacturing capacity and strong commercial partners, together with its “4S” strategy, has generated six consecutive reporting periods of strong growth, with TRX turning EBITDA-positive in 2023.</li></ul>

TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone (BioRinse®).It has a broad portfolio of products used in biosurgery, orthopaedics and dental markets.Investment in tissue processing, manufacturing capacity and strong commercial partners, together with its “4S” strategy, has generated six consecutive reporting periods of strong growth, with TRX turning EBITDA-positive in 2023.

Hardman & Co Research: Tissue Regenix (TRX) - Six consecutive periods of >20% growth

Arbuthnot Banking Group PLC, together with its subsidiaries, provides various banking and financial products and services in the United Kingdom. It operates through three segments: Retail Banking, UK Private banking, and Group Centre. The company provides private banking services, such as current accounts, deposit accounts, loans, overdrafts, and foreign exchange services; wealth planning services comprising estate and tax planning, pensions, and wealth preservation and generation; and discretionary investment management services, including asset management and developing tailored investment strategies. It also offers retail banking products and services, such as savings and current accounts; consumer finance products in motor finance, retail finance, and unsecured personal lending areas; and SME?s funding for asset finance, invoice finance, and real estate finance. In addition, the company offers commercial banking services comprising financing and cash transaction requirements of SMEs, as well as household cash management and insurance services. Further, the company offers leasing, debt collection, and property rental and management services. Arbuthnot Banking Group PLC was founded in 1833 and is headquartered in London, the United Kingdom.

<ul><li>The saying goes, the proof of the pudding is in the eating.</li><li>ABG’s 2023 results proved that the strategic positioning of the group, as a relationship bank, has created enormous value.</li><li>Key highlights were i) PBT £47.1m (2022: £20.0m), ii) operating income £178.9m (2022: £137.4m), iii) average net margin 5.7% (2022: 5.1%), iv) EPS +103% to 222.8p, v) total dividend for the year of 46p (2022: 42p), vi) net assets of £252.4m (2022: £212.0m), NAV per share of 1,547p (2022: 1,411p), vii) CET1 ratio of 13.0% (2022: 11.6%), and total capital ratio of 15.2% (2022: 14.0%).</li></ul>

The saying goes, the proof of the pudding is in the eating.ABG’s 2023 results proved that the strategic positioning of the group, as a relationship bank, has created enormous value.Key highlights were i) PBT £47.1m (2022: £20.0m), ii) operating income £178.9m (2022: £137.4m), iii) average net margin 5.7% (2022: 5.1%), iv) EPS +103% to 222.8p, v) total dividend for the year of 46p (2022: 42p), vi) net assets of £252.4m (2022: £212.0m), NAV per share of 1,547p (2022: 1,411p), vii) CET1 ratio of 13.0% (2022: 11.6%), and total capital ratio of 15.2% (2022: 14.0%).

Arbuthnot Banking Group (ARBB): 2023 - delivering strategy with strong profit growth

H&T Group plc primarily provides pawnbroking services in the United Kingdom. It operates in six segments: Pawnbroking, Gold Purchasing, Retail, Pawnbroking Scrap, Personal Loans, and Other Services. The company also offers gold purchasing, jewelry retail, cheque cashing, unsecured lending, buyback, foreign exchange, money transfer, and prepaid debit card services. As of June 30, 2016, it operated 186 H&T Pawnbrokers stores and est1897 second hand jewelry retail stores. The company was incorporated in 2004 and is headquartered in Sutton, the United Kingdom.

<ul><li>In our 15 March 2023 initiation, 'Pawnbroking royalty, with strong, profitable growth', and subsequent notes, we have highlighted the strong market for pawnbroking and why H&T, as the market leader, is uniquely placed to take advantage of these opportunities.</li><li>These results reconfirmed both, with the pledge book up 28% and net pawnbroking revenue up 36%.</li><li>Like many in the retail space, H&T faced the challenge of customers focusing on lower-value, lower-margin items in the key run-up to Christmas 2023.</li></ul>

In our 15 March 2023 initiation, 'Pawnbroking royalty, with strong, profitable growth', and subsequent notes, we have highlighted the strong market for pawnbroking and why H&T, as the market leader, is uniquely placed to take advantage of these opportunities.These results reconfirmed both, with the pledge book up 28% and net pawnbroking revenue up 36%.Like many in the retail space, H&T faced the challenge of customers focusing on lower-value, lower-margin items in the key run-up to Christmas 2023.

H&T Group (HAT): Core franchise build, short-term retail noise

NB Private Equity Partners / Equity Bottom-Up

NB Private Equity Partners is a closed end investment fund incorporated in Guernsey. The fund invests in a diversified portfolio of direct yielding investments, co-investments and fund investments selected by the NB Alternatives group of Neuberger Berman, diversified across private equity asset class, geography, industry, vintage year, and sponsor.

<ul><li>In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically generate incremental EBITDA growth to offset higher interest costs.</li><li>Long-term target returns for new deals on the NB platform are unchanged, despite the short-term interest rate noise.</li><li>This note builds on the drivers of historical superior EBITDA (see 2023 CMD: value creation from growing companies).</li></ul>

In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically generate incremental EBITDA growth to offset higher interest costs.Long-term target returns for new deals on the NB platform are unchanged, despite the short-term interest rate noise.This note builds on the drivers of historical superior EBITDA (see 2023 CMD: value creation from growing companies).

NB Private Equity Partners (NBPE): Value creation in a higher-rate environment

Hardman & Co has a long established reputation for high quality and independent research on small and mid cap quoted companies. Our industry analysts are all highly experienced, with an average of 23 years researching companies for investors. In addition to providing in-depth company coverage, we work closely with our clients in an advisory capacity, providing market intelligence, advice on corporate transactions and in constructing marketing programmes targeted at both retail and institutional investors. 
 
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Research from Hardman & Co
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Chesnara (CSN): Good 2023 results set platform for future progress

Chesnara has announced its 2023 results. Positive returns from equity markets and gains from acquisitions in the first half were somewhat offset...

Hardman & Co

Hardman & Co Research: Tissue Regenix (TRX) - Six consecutive periods of >20% growth

TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone...

Hardman & Co

Arbuthnot Banking Group (ARBB): 2023 - delivering strategy with strong profit growth

The saying goes, the proof of the pudding is in the eating. ABG’s 2023 results proved that the strategic positioning of the group, as a...

Hardman & Co

H&T Group (HAT): Core franchise build, short-term retail noise

In our 15 March 2023 initiation, 'Pawnbroking royalty, with strong, profitable growth', and subsequent notes, we have highlighted the strong...

Hardman & Co

NB Private Equity Partners (NBPE): Value creation in a higher-rate environment

In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically...

Hardman & Co