Mj Hudson Share Discussion Threads

[se81] 02/8/2022 16:38

This is becoming quite amusing (in spite of those paper losses!)

Taken down nigh on 10% on less than £50k traded then I'm being told I can't buy within the published spread- you what?!

It's just becoming an exercise in finding liquidity for the/a seller- not sure I've seen a share hitting ATLs off the back of 3 consecutive earnings upgrades before...

[simon gordon] 26/7/2022 17:40

Novata the closest peer in Private Markets, for an ESG SaaS solution, is now at around forty employees:



They've been hiring business development (sales) staff in the UK & Ireland.

At MJH one of the ESG Managers was made Principal of their new Carbon & Climate practice:

[simon gordon] 25/7/2022 15:46

ESG Today - 25/7/22:

Accenture Invests in ESG Measurement Platform PulsESG

Global professional services firm Accenture announced today that it has made a strategic investment in ESG measurement platform PulsESG, through its venture arm Accenture Ventures.

Co-founded last year by Silicon Valley software veterans Murat Sönmez and Inderjeet Singh, and launched with $8.5 million in seed financing, PulsESG’s software as a service (SaaS) platform utilizes internal data sources and external systems to help organizations define, measure and report on ESG performance, and address issues around ESG data quality and timelines.

According to co-founder Murat Sönmez, the investment from Accenture “will allow us to scale our platform to new heights as clients navigate the inherent fluidity in ESG analysis.”

Sönmez added:

“With a shift toward real-time ESG reporting becoming standard practice for companies worldwide, we designed this platform to be the ultimate system of record for ESG – one that has the flexibility and modularity required of today’s rapidly transitioning regulatory landscape.”

Accenture and PulsESG will look to build joint product offerings, and PulsESG will join Accenture Ventures’ Project Spotlight, connecting emerging technology software startups with the Global 2000 to fill strategic innovation gaps.

Peter Lacy, Sustainability Services Lead & Chief Responsibility Officer at Accenture, said:

“We believe that every business must be a sustainable business and that fundamentally changes how companies report and disclose financial data. Now, the next step is to deliver on this opportunity to unlock the full value from, and impact of, measuring and managing for sustainability. We look forward to bringing the capabilities from this strategic investment to our clients, alliances and partners to help improve ESG measurement and performance with greater transparency and assurance being sought across stakeholders.”

The announcement is the latest in a series of investments by Accenture to boost its sustainability and ESG-focused capabilities, including recent acquisitions of Munich-based sustainability consultancy akzente , UK-based sustainability consultancy Avieco and sustainability-focused engineering and advisory consultancy Greenfish, as well as an investment last year by Accenture Ventures in ESG data platform Arabesque S-Ray (now ESG Book).

Tom Lounibos, Managing Director of Accenture Ventures

“Our investment in pulsESG not only highlights our commitment to scaling new technologies that help our clients solve critical business challenges, but also reinforces our belief in the importance of using innovation for social good.”



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PulsESG

[simon gordon] 24/7/2022 08:06

FT - 18/7/22:

Chief sustainability officers prosper as ESG risks mount

CSOs are an increasingly indispensable part of the executive team — and a potentially valuable source of tip-offs

Not so long ago, chief sustainability officers were a corporate novelty. “Is this a fad or a role that will endure?” asked a Financial Times think-piece in 2011.

By now, the answer is clear. The CSO has become a crucial member of the management team, a rise reflecting sustainability’s increasing prominence on the corporate agenda.

That, in turn, has changed the mix of skills demanded. While the ability to manage climate risks and to navigate an ever tougher regulatory landscape is vital, so too is expertise at handling corporate matters at the highest level.

Continued...



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LSE Blogs - 20/7/22:

Why corporate boards need sustainability experts

...A decade ago, a company focusing on sustainability would have a competitive marketing edge, but today it is more than that. It has become imperative for all companies to integrate ESG due to increasing demand by all stakeholders. Younger generations of consumers, especially millennials and Gen Z, are increasingly particular on consuming sustainable products, with 73% of Gen Z consumers saying they are even willing to pay more for them. Gen Z are also particular on working for companies adhering to sustainability: a Deloitte survey shows that 49% of Gen Z had made career choices based on personal ethics.

Many governments have become stricter after the Paris Climate Agreement, with many setting legally binding net zero emissions targets. The EU’s taxonomy, for example, will force change in companies operating not only in the EU but also in other countries around the world that have businesses in or trade with the EU. When making investment decisions, 85% of investors in 2020 looked at ESG factors. Sustainability is also about increasing financial returns as companies with an inclusive culture show a 22% increase in productivity and a 27% higher profitability...

[simon gordon] 22/7/2022 10:27

JTC trading update this morning. Tasty margin and solid recurring revenues with a healthy pipeline, looking to do more deals:

Investegate - 22/7/22

JTC, the global professional services business, today issues the following trading update in advance of its interim results for the period ended 30 June 2022.

The first half of the year has seen a strong performance across the Group, with the Company delivering within all of its well-established guidance metrics, namely, 8% - 10% net organic revenue growth, underlying EBITDA margin of 33% - 38%, with margin progression compared to 2021, demonstrating the Group's ability to manage higher cost inflation. Cash conversion was within the guidance range of 85% - 90% and as a result, leverage reduced by 0.7 times in the period, bringing it well within guidance of 1.5 - 2.0 times underlying EBITDA.

Organic growth was driven by record new business wins of £12.6m (+22% on H1 2021 figure of £10.3m) with a new business pipeline at period end of £52.2m (+15% on the H1 2021 figure of £45.3m). Performance in June was strong, giving good momentum into H2, demonstrating JTC's highly resilient business model and the long-term structural growth drivers of the sector.

In terms of inorganic growth, the seven businesses acquired in 2021 are all integrating well onto the JTC global platform and the M&A pipeline remains active with a number of small to mid-size opportunities well progressed. Targets span both the Institutional Clients Services Division (fund and corporate services) and the Private Client Services Division (trust company and family office services) with a particular focus on the high-growth, US market.

The Board is confident that the Group will deliver full year results in line with market expectations* and maintains its medium-term guidance.

[simon gordon] 21/7/2022 12:45

I've had a look at JTC and AFM, prefer MJH to both of them. Like you I prefer pure plays. The only other share I'm in is PCIP.

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MJH - 21/7/22:

NS Partners selects MJ Hudson’s RiskMonitor platform for liquidity stress testing



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NS Partners

[chasbas] 21/7/2022 12:35

Hi Simon
Apex is super impressive. I said earlier that I hold MJH, JTC and ICP. is there anything else in this space available to us? I'm monitoring private equity asset managers: HG Capital, Molten Ventures, Bridgepoint, Oakley. But I prefer individual stocks though they all look good long term plays. Your views would be very welcome.
GLA

[simon gordon] 21/7/2022 11:47

Chas,

Have you followed the Apex story?

They are rolling up fund admin operators and took out Sanne. Private equity backed, HQ in Bermuda, with a Brit founder running it.

I see on their site that they have $178bn AUM in their Super ManCo division with 250 staff. MJH at $70bn+ with the Dublin team moving to a new office for more space as they expand.

[simon gordon] 21/7/2022 11:20

Chas,

You are right, patience is the key here.

Fingers crossed!!

Some staff on a team bonding session the other day:

[chasbas] 21/7/2022 09:04

Simon
Thanks for your comments. Yes, maybe I'm forgetting that MJH's market cap is £58m while JTC's is over £1bn. However, MJH's trading statement on 12th July was so positive it is frustrating. I think there are plenty of quoted legal/professional services firms now quoted with decent ratings, it just seems that MJH is overlooked despite (more?) attractive tail winds...I guess we will just have to be patient. Stockopedia's screening scores can only improve after year end results. Now that new auditors are on board there should not be a delay for their year end results.
GLA

[simon gordon] 20/7/2022 16:55

Chas,

Comparing JTC's shareholder base to MJH's it's probable that JTC got a stronger institutional base because they were in the Expansion stage of the S Curve. They had positive cash flow and a more formed business.

When MJH floated they were mainly Advisory with a bit of analytics and outsourcing. So, much earlier stage than JTC, more a story stock.

Since the float in 2019 they've totally re-engineered the group to be more heavily weighted to recurring revenues in outsourcing and data analytics. The quality of their earnings is increasing whereas JTC's were already of a high quality when they floated.

All MJH can do is prove up their strategy and show the market that they are worthy of a higher rating because their earnings are now of a higher quality.

I think their outsourcing, data analytics and ESG offering gives them a path for this to happen. Look how the Irish ManCo has performed since acquisition. Their ESG expertise and technology is a great selling point for their fund management / ManCo offering when going up against Apex, JTC, etc.

It's a tiddler with the potential to become a much larger company like JTC, it just starts from a different base.

[simon gordon] 20/7/2022 15:47

Hopefully, current holders are in at the early share price stage of the expansion and over the coming years the share can multi bag. All the ingredients are there. FY 2022 has shown that the strategy is coming together and the offering is winning.

They've moved from Infancy to Expansion.

[simon gordon] 20/7/2022 15:41

Chas,

They were highly rated when they floated (infancy stage), then Covid hit and the 2021 number came in one million weaker than initial forecasts probably due to Advisory being hit.

Since they've started the upgrade cycle the Russian's have invaded Ukraine, the market for Small Caps is risk off and it looks like a large holder wants out. The seller looks the biggest drag of the three. You'd think at some point a small cap fund will twig on the growth potential and margin expansion.

MJH won't screen well as it's still in the early part of the expansion stage, will come up on screeners if it goes further up the curve.

[chasbas] 20/7/2022 15:19

I like the alternative asset space, so I was in Sanne (taken over by an industry player). I remain in JTC, Intermed Capital and MJH.
MJH is by far the worst stockmarket performer and has been derated the most. Why?
MJH presentations are excellent and Matthew is a convincing speaker and has put his money where his mouth is. Cenkos/Progressive write gushing reports and their forecasts are very encouraging. BUT Institutional shareholdings are not very impressive certainly compared to JTC. Stockopedia's rating is poor, particularly Quality at only 15.
Historic statutory numbers have been poor - probably the explanation for Stocko's rating??
Given MJH's excellent prospects can anyone explain the low rating/lack of institutional conviction?
Thanks and GLA

[c3479z] 20/7/2022 14:06

good, thanks simon

[simon gordon] 20/7/2022 13:09

c,

Big and fast growing markets they operate in, especially ESG. In fund management they offer back and mid office with data analytics and ESG Sustainability. I don't think any of their competitors have such an offering. The tough bit for any business is getting through the door and with their multiple offerings, one stop shop, they have a good shot and as they say, large players are now coming to them as they're seen as leaders in their private markets niche.

Profit vs EBITDA. Right now they are investing for growth, 36+ job offerings, tech investment, etc. Scaling outsourcing, ESG and analytics. EBITDA margin currently c.20% and could go toward c.30%+ from 2024. Profits and cash could start flowing from that point on.

ESG Advantage signed up with fourth biggest bank in the world, trading update indicates that this creates a flywheel for upselling ESG services. The lady who operates this division was Head of Strategy and Chief of Staff at HSBC before having twins. A fledgling part of the business with serious and proven talent in charge.

Suppose the trade comes down to whether they can keep delivering growth with their one stop shop. 2022 is indicating that they can. The management are excellent, the workforce, largely young and hungry. It looks a superb set up. Compare it to the direct competition and you may see that they look unique.

[c3479z] 20/7/2022 12:45

not short of competition in their core markets and yet to declare a profit?

[chrisdgb] 20/7/2022 08:24

Drifting off again, just don't get it.........

[simon gordon] 20/7/2022 07:41

ESG Advantage now has a Product Manager who started in May:

Micha Elenbass



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McKinsey - 24/5/17:

Product managers for the digital world

The role of the product manager is expanding due to the growing importance of data in decision making, an increased customer and design focus, and the evolution of software-development methodologies.

Product managers are the glue that bind the many functions that touch a product—engineering, design, customer success, sales, marketing, operations, finance, legal, and more. They not only own the decisions about what gets built but also influence every aspect of how it gets built and launched.

Unlike product managers of the past, who were primarily focused on execution and were measured by the on-time delivery of engineering projects, the product manager of today is increasingly the mini-CEO of the product. They wear many hats, using a broad knowledge base to make trade-off decisions, and bring together cross-functional teams, ensuring alignment between diverse functions. What’s more, product management is emerging as the new training ground for future tech CEOs.

As more companies outside of the technology sector set out to build software capabilities for success in the digital era, it’s critical that they get the product-management role right.

Continued...

[noujay] 19/7/2022 08:36

Another who have just released an ESG platform are GaiaLens - formative, again private.Typo from last post - it is Sentieo

[noujay] 18/7/2022 22:16

There seem to be a mixture of companies specialising in ESG themes, data analysis et al. Per the article, what is missing is a true one stop. Suspect plenty of m&a around this sector in due course.Signal AI, Insig, ESG Book, Sentient are a few - mostly unlisted

[simon gordon] 18/7/2022 16:18

War for talent amongst the heavy hitters:

ESG Today - 18/7/22

Deloitte Hires Wim Bartels, Arjan de Draaijer as Senior Sustainability Partners

Global professional services firm Deloitte announced the appointment of Wim Bartels and Arjan de Draaijer as Senior Sustainability Partners. Prior to joining Deloitte, Bartels and de Draaijer both served as Global Co-Heads of KPMG’s ESG solutions service, KPMG IMPACT.

The appointment comes as Deloitte moves to expand its capabilities, assets and services to address clients’ increasing sustainability related needs. Earlier this year the firm announced a $1 billion investment to grow its Sustainability & Climate practice, building on its initiative from last year to provide climate training to all of the firm’s 345,000 professionals, as well as to clients and suppliers.

[simon gordon] 18/7/2022 16:05

Cheers Noujay!

Dydon AI is one I came across recently that offers an AI Sustainability offering:

[noujay] 18/7/2022 15:37

Article below that may be of interest:https://venturebeat.com/2022/07/13/why-ai-is-critical-to-meet-rising-esg-demands/