Augmentum Fintech Share Discussion Threads

[riverman77] 24/7/2024 12:57

Nice little pullback gives me opportunity to buy back the shares I trimmed at 120p - thanks Mr Market. My core holding stays unchanged.

[rimau1] 24/7/2024 10:52

Last retrace it found support at 99/102, works well to add on the way down and sell in the 120 plus, i have a trading pot and a core long term holding. Limit buys set at 112 and all the way down. Less chance of getting bored this way

[craigso] 24/7/2024 10:29

Any guesses as to a support level?

Happy to add to my position given the strong valuation fundamentals, but as mentioned, the share price seems to be drifting downwards out of boredom more than anything...

[kenmitch] 23/7/2024 17:21

Deleted. Posted twice.

[kenmitch] 23/7/2024 17:21

Surely that is the reason for the grotty share price performance SKYSHIP. Discount of 32% is daft bearing in mind this bit from their Results last month:-

Portfolio highlights:-

“The valuation of the top three positions (Tide, Zopa Bank and Grover) plus a strong cash position, was just below Augmentum’s £170 million market capitalisation at year end. These three companies have grown revenues by an average of over 1,300% since initial investment and are either profitable or expected to reach profitability without further funding.

Top 10 holdings, which represent 81% of portfolio value (31 March 2023: 78%) grew revenue at an average of 65% year-on-year (31 March 2023: 117%) and are cash generative (five positions) or have an average of 203 months cash runway.
Cushon’s majority shareholding acquisition by NatWest Group completed during the period, and returned £22.8 million to the Company, delivering a return of 2.1x multiple on invested capital and an IRR of 62%.

Post year end: exit from Onfido through the acquisition by Entrust, delivering a return of 1.3x on invested capital and an IRR of 5.8%.

There have now been six exits from the portfolio since inception all at or above their last reported value, which have realised a cumulative £89.6 million in proceeds – £55.9 million over their original cost (c2.7x invested capital).
IRR of 16%4 on invested capital since inception (31 March 2023: 18.5%).“

[skyship] 23/7/2024 12:59

Disappointing retrace by AUGM. Suspect no reason other than short-term profit-taking and boredom!

Discount back up to 32%.

[quepassa] 04/7/2024 09:33

Indeed. I thought that too.

These guys normally do thorough due diligence on their investments.

Institutional investors buying is a good signal.

Encouraging to see a big and well-regarded Pension Authority on board with a stake of this size:-

hXXps://www.sypensions.org.uk/About-us


ALL IMO. DYOR.
QP

[wsm812] 03/7/2024 12:36

For anyone that hasn't seen it

[wsm812] 27/6/2024 09:34

I agree 888ICB, which is why we are both committed here already. Hopefully word is being spread to those who aren't in the know.

A base rate drop will act as another upward influence on the share price Until then I happy to see more trades at and above the 120p level, which in turn will then act as a support level, have been a level of resistance for so long.

[888icb] 27/6/2024 09:19

In my opinion that is a very sound investment. The discount to NAV is ridiculous and they have £44 million in cash. When you then consider the very conservative valuations they put on the investments and the potential upside when the investments are realised the discount to NAV in reality is much higher.Lets hope the market is finally taking notice of AUGM and the discount is reduced. As Tim mentioned in the presentation he would like to see it trading at a premium which would seem to be appropriate for access to all its investments which are not accessible to most investors.

[wsm812] 27/6/2024 09:04

Someone bought £12.2k @ 122p earlier - they must have watched the presentation!

[888icb] 26/6/2024 14:21

Just watched an excellent presentation by the CEO which will soon be available on the website and Investor Meet. Well worth watching.

[wsm812] 26/6/2024 14:02

Upward yearly breakout! I was a day out - haha

[wsm812] 25/6/2024 12:53

Plenty of longs at 118 this pm. I expect another tick up and possibly a 12 month high today.

[wsm812] 25/6/2024 11:03

You have summed this stock up perfectly kenmitch. The word will spread, the share price will rise, we will benefit. Until then I'm very happy to keep holding and watch the facts turn into ££s

[kenmitch] 25/6/2024 10:43

My thoughts on AUGM. Is any of it wrong?

Augmenttum Fintech (LON:AUGM) is at a stunning bargain price, with the only obvious problem being investors, as is the case with too many Investment Trusts on big discounts to NAV, still not recognising this.

Note the first bit of their Portfolio highlights update today; their top 3 holdings plus cash covers almost all the current market cap with all the other often quality holdings doing well, in the share price for free.

Also all exits from the portfolio so far have all been above the last reported value and have realised £89.6 million proceeds compared with about £34 million originally invested in them.

AND NAV is up again to 167p, yet Augmentum Fintech (LON:AUGM) can be bought for just 115p. Don’t know how long before investors wake up or before it attracts a bid or amalgamation, but it looks a steal as a lockaway buy. I hold but only with modest 5% gain ….so far.

Portfolio highlights

The valuation of the top three positions (Tide, Zopa Bank and Grover) plus a strong cash position, was just below Augmentum’s £170 million market capitalisation at year end. These three companies have grown revenues by an average of over 1,300% since initial investment and are either profitable or expected to reach profitability without further funding.

Top 10 holdings, which represent 81% of portfolio value (31 March 2023: 78%) grew revenue at an average of 65% year-on-year (31 March 2023: 117%) and are cash generative (five positions) or have an average of 203 months cash runway.

Cushon’s majority shareholding acquisition by NatWest Group completed during the period, and returned £22.8 million to the Company, delivering a return of 2.1x multiple on invested capital and an IRR of 62%.

Post year end: exit from Onfido through the acquisition by Entrust, delivering a return of 1.3x on invested capital and an IRR of 5.8%.

There have now been six exits from the portfolio since inception all at or above their last reported value, which have realised a cumulative £89.6 million in proceeds – £55.9 million over their original cost (c2.7x invested capital).
IRR of 16%4 on invested capital since inception (31 March 2023: 18.5%).

[888icb] 25/6/2024 07:11

From the RNS:
“ Neil England, Chairman of Augmentum Fintech plc commented:

“The Company’s NAV per share after performance fee at 31 March 2024 was 167.4p, up 5.4% from 31 March 2023. This continued our history of increases for every reporting period since the Company’s IPO in 2018.”

“The UK equity market has been largely out of favour and investment company discounts are running at historic highs in many cases. However, UK inflation numbers are improving, and history suggests that growth companies such as Augmentum will be early beneficiaries of any rally inspired by declining rates.”

“We maintained our investment discipline over the last year and, with our strong cash reserves (£44.8 million as at 31 May 2024), we are well placed both to take advantage of new opportunities and to reinforce our appeal as a supportive investor. We have a healthy pipeline of opportunities under consideration.”;

Tim Levene, CEO of Augmentum Fintech Management Limited commented:

“Several portfolio companies have posted meaningful profits this year and have attracted substantial growth capital of over £150 million during the period. The operational performance of the vast majority of the companies in the portfolio has continued to be strong, with an average revenue growth of 65% across the top 10 holdings in the last 12 months. There have been some standout results, in some cases ahead of expectations, and the majority of our companies have over two years of cash runway.”

"Fintech’s market share of global financial services revenue remains below 5% but is set to more than double during the next decade as fintech companies both disrupt incumbent firms and become their partners for delivering digital transformation and harnessing the potential of new technologies. Hundreds of valuable companies will be built in Europe to support this change. In our view, the European early stage fintech ecosystem has reached an exciting point of maturity.”

“This year, we have crossed several important milestones; six years since IPO, six exits delivered to the Company and the first portfolio position rising above a fair value of £50 million.”

[wsm812] 25/6/2024 07:00

The results represent the ethos and trading style of Tim precisely. Steady, safe and profitable. He knows exactly what he is doing and those who are patient will be rewarded. The NAV gap has increased and will continue to do so. Once interest rates start falling we will see the NAV gap close for sure. That is when a rerating will happen.

[peterrr3] 25/6/2024 06:53

Sound results no real surprises. Hopefully this should establish a floor and tick up a bit more.

[riverman77] 24/6/2024 15:17

The rerating you're referring to was at the end of last year - that's all good and I'm sitting on a nice gain from that having bought in the low 80s. However, only a moron such as yourself can fail to see that it's now due a further rerating given what we've seen in similar funds (eg GROW which I also hold is up nearly 50% YTD)

[rimau1] 24/6/2024 14:54

Urgh. Really. Clearly depends on your data points, its a rerate in my eyes since i was adding in the 90's in this calendar year. Any IT doing in excess of 1000bps in 6 months for me is a rerate. I guess you are bored riverman or having a slow afternoon...

[riverman77] 24/6/2024 14:48

The rerate? This has barely moved since start of the year. Hoping for a lot more upside to come, although will need some sort of trigger (most likely a profitable exit on one of their larger positions)

[wsm812] 24/6/2024 13:45

Still a bargain given that NAV is/was 160p