Pollen Street Group Reports Strong 2024 Results with 29% AuM Growth
Why we think this is very good
Pollen Street Group has delivered exceptional financial results for 2024, demonstrating robust growth across key metrics. The company reported a 29% increase in Assets under Management (AuM) to £5.4 billion, driven by strong performance in both Private Equity and Private Credit strategies. Fund Management Income saw a significant 36% growth to £66.8 million, while Operating Profit rose by 31% to £58.2 million. The company's profitability improved substantially, with Earnings Per Share (EPS) increasing by 27% to 78.8 pence. Notably, the Fund Management EBITDA Margin expanded from 30% to 39%, indicating enhanced operational efficiency. The company has also strengthened its financial position by reducing total debt from £210.8 million to £188.3 million. While cash decreased from £19.7m to £11.2m and operating cash flow decreased from £102.8m to £84.6m, these are outweighed by the overall positive performance. The company maintains a positive outlook, targeting £10 billion AuM in the medium term. With successful fundraising for Private Equity Fund V and Private Credit Fund IV, along with a diversified investor base, the company is well-positioned for continued growth. The absence of any mentions of headwinds or challenging market conditions in the report further supports the positive sentiment.
Key Points
- Assets under Management (AuM) increased 29% to £5.4 billion
- Fund Management Income grew 36% to £66.8 million
- Operating Profit rose 31% to £58.2 million
- Earnings Per Share (EPS) increased 27% to 78.8 pence
- Fund Management EBITDA Margin expanded from 30% to 39%
- Total debt reduced from £210.8 million to £188.3 million
- Cash decreased from £19.7m to £11.2m
- Operating cash flow decreased from £102.8m to £84.6m
- Private Equity Fund V surpassed €1 billion target
- Private Credit Fund IV on track to achieve £1 billion target in 2025
- New £240 million debt facility secured until June 2028
- Medium-term target set at £10 billion total AuM
- No significant headwinds or challenging market conditions reported
Summary
Pollen Street Group has delivered exceptional financial results for 2024, demonstrating robust growth across key metrics. The company reported a 29% increase in Assets under Management (AuM) to £5.4 billion, driven by strong performance in both Private Equity and Private Credit strategies. Fund Management Income saw a significant 36% growth to £66.8 million, while Operating Profit rose by 31% to £58.2 million. The company's profitability improved substantially, with Earnings Per Share (EPS) increasing by 27% to 78.8 pence. Notably, the Fund Management EBITDA Margin expanded from 30% to 39%, indicating enhanced operational efficiency. The company has also strengthened its financial position by reducing total debt from £210.8 million to £188.3 million. However, it's worth noting that cash decreased from £19.7m to £11.2m and operating cash flow decreased from £102.8m to £84.6m. Looking ahead, Pollen Street Group maintains a positive outlook, targeting £10 billion AuM in the medium term. With successful fundraising for Private Equity Fund V and Private Credit Fund IV, along with a diversified investor base, the company is well-positioned for continued growth. The company's going concern status appears stable, supported by a new £240 million debt facility secured until June 2028. Broker targets suggest further upside potential, with Berenberg Bank and Barclays setting price targets of 900p and 910p respectively, well above the current share price of 716p. The report does not mention any significant headwinds, challenging market conditions, or other negative factors that might impact future performance.