Foresight Share Discussion Threads

[spectoacc] 19/7/2023 12:15

Fair point, depends what's in the price. But the yield feels fake on many of them - particularly solar & wind - as they don't own the ground, only a lease over it, and the assets need renewal after [pick a date, but say 25-35 years].

That's very different to a trading co - this is just sweating the cashflows, taking a very tidy fee, paying out the remainder, and nothing bar grid connections and the hope of a new lease available at the end.

[riverman77] 19/7/2023 11:26

Can't say I'm a huge fan either, although starting to look decent value on current discounts, hence taking small positions in UKW and TRIG. Would probably sell if the discount ever closes, but in meantime getting a decent 6-7% largely inflation linked yield.

[spectoacc] 19/7/2023 07:58

Most of the renewable funds are just sweating assets and returning in the form of divis. Without premia, the issue-buy model looks sunk.

[riverman77] 18/7/2023 18:37

I think you might be right - GHE was a bit concentrated on forestry, whereas FSG seems better diversified with no single fund dominating. At the very least a very decent substitute to GHE.

[hiddendepths] 18/7/2023 17:55

riverman - I switched over too!

I actually prefer FSG - seems more dynamic and should continue growing apace despite the obvious headwinds affecting the industry.

[riverman77] 18/7/2023 16:42

I think most of the renewable funds are primarily income vehicles, although you might get some capital growth from development or increase in asset valuations.
There are a lot of renewable funds to choose from and the discounts certainly look tempting. I hold UKW and TRIG - they have proven track records so fairly confident the managers know what they're doing. Of the newer funds, ORIT and DORE also look interesting. There might well be better options but not studied the sector in detail.

[brucie5] 18/7/2023 16:20

Ok, thanks, as I thought. Do you not see much growth to NAV in either of the former (FSL/JLEN)?

Also GSF and NESF - similar stories? Do you hold any?

I notice FSG has some great screens on Stocko.

[riverman77] 18/7/2023 14:35

Sold my GHE and switched into FSG - broadly similar companies so hopefully a good replacement. Worth noting that the GHE bid came in at 15.9x EBITDA - applying this to FSG would put it on around £800m market cap (around 50% above current level).

Brucie - in answer to your question, JLEN and FSL are basically just income funds - you get a nice 6-7% inflation linked yield with relatively low risk. Also has to be some upside potential if discounts narrow.
FSG is all about growth as they expand the asset management businesses and grow AUM. So depends what you're after.

[brucie5] 17/7/2023 09:48

Here's a question for holders and experts here: how do you compare the core advantages of holding FSG long terms as against its underlying managed trusts JLEN and FSL? TiA.

[srichardson8] 04/7/2023 12:58

Yes all pretty good though there was a slight nore of caution in the otlook with a (very) small decrease in AUM and FUM in the first quarter to end June. Hardly suprising given the state of the world and seems to emanate from some OEIC withdrawals.

[fredd] 04/7/2023 07:31

Results look OK

A record year of profitability and AUM growth

Foresight Group Holdings Limited ("Foresight", the "Group"), a sustainability-led infrastructure and private equity investment manager, is pleased to announce its results for the financial year ended 31 March 2023 ("FY23", "the period").

Financial and Operational Highlights


-- 58% increase in core EBITDA pre Share-Based Payments ("SBP") to
GBP50.2 million evidencing highly profitable growth

-- Predictable long-term revenue model providing strong platform
for continued growth, with recurring revenue of 86.6% for
the period comfortably within our target range of 85 - 90%

-- High quality asset and portfolio management capabilities
generated GBP5.8 million in performance fees across the
business


-- Exceptional growth of 38% and 35% in Assets under Management ("AUM")
and Funds under Management ("FUM") in FY23 to GBP12.2 billion and
GBP9.0 billion respectively (FY22: GBP8.8 billion AUM and GBP6.7
billion FUM), well in excess of our target

-- Drove a 38% increase in revenue to GBP119.2 million

-- GBP3.3 billion added to AUM through the financially and
strategically accretive acquisitions of Infrastructure Capital
Group (now integrated as Foresight Australia) and the technology
ventures division of Downing LLP

-- In-house sales team drove strong inflows of GBP0.3 billion
into high margin retail products

-- Expansion of high margin regional growth strategy with three
new funds in the UK and a first impact fund in Ireland

-- Continued international expansion and diversification, with
AUM outside the UK having increased from 23% at IPO (February
2021) to 43% as at 31 March 2023

[tole] 17/4/2023 06:35

https://citywire.com/funds-insider/news/expert-view-travis-perkins-foresight-synthomer-norcros-and-devolver/Foresight Group derating 'hard to square', says JefferiesThe derating of infrastructure investment manager Foresight Group (FSG) is 'unjustified and unsustainable', says Jefferies.Analyst Tom Mills retained his 'buy' recommendation and target price of 540p on the stock, which fell 1.4%, or 6p, to 410p at the end of last week.Full-year results from the group confirm it will hit the top end of its upgraded earnings guidance provided three months ago, and Mills said he was reassured it would 'meet or exceed our £49m estimate'.'After the successful and transformational M&A of 2023, the next 12 months is set to be underpinned by organic fundraising from established infrastructure strategies,' he said.Mills said the group 'hasn't missed a beat' since its initial public offering in 2021 and at a 10 times current year 2023 price/earnings, is trading at an '8 point discount to the wider European illiquid alternatives sector', which is 'unjustified and unsustainable'.'We find this hard to square against Foresight Group's unimpeachable track record since IPO, its organic growth outlook, and the quality of its earnings – close to 90% underpinned by recurring income,' he said. 'Something has to give.'

[km18] 13/4/2023 15:16

The group continued to deliver highly profitable growth. Exceptional increase in Assets under Management and Funds under Management in FY23 of 37% and 34% to £12.2 billion and £9.0 billion respectively (FY22: £8.8 billion AUM and £6.7 billion FUM), more than their target. Revenue has increased significantly from the previous year and is anticipated to be ahead of latest consensus. Recurring revenue for the period is expected to be within their target range of 85 - 90%, further showing their predictable long-term revenue model.
Valuation looks good, has forward PE ratio 10.3x and is ranked 24th out of 67 companies
in the Investment Banking & Investment Services market. PS ratio at 4.56x which is ranked 114th out of 199 companies. The balance sheet looks good as well with net debt being -19.0. leaving net gearing as -25.18% which shows the group has more cash at hand than debt.

from....WealthOracle

[topvest] 13/4/2023 12:54

Another very positive update.

[topvest] 06/4/2023 16:49

Yes, it is quite wide. I've added a few more today though.

[winsome] 28/3/2023 10:38

Why is there such a wide spread on the bid/offer price?

[petewy] 12/1/2023 10:10

Excellent trading update.

[petewy] 11/1/2023 20:51

Flying now...

[topvest] 02/12/2022 16:48

Yes, all good. A bit frustrating as I was thinking of a top-up earlier in the week....too slow!

[ben gunn] 01/12/2022 15:32

Quite!
Prospects look excellent and I admire the 60% of free cash flow to div Strategy.

[kevph] 01/12/2022 09:07

Agree. Great prospects as well. FSG screened as a great share by accident, can't believe the BB is so quiet...

[rj777] 01/12/2022 08:21

Excellent results today

[topvest] 09/4/2022 14:29

Yes, a positive trading update. Foresight and Gresham House both seem to be in a sweet spot on renewables and infrastructure investment.