Monthly Update - June 2022
03/08/2022 07:00
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RNS Number : 6687U Honeycomb Investment Trust PLC 03 August 2022
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03 August 2022
Honeycomb Investment Trust plc
Honeycomb Investment Trust plc (the "Company" or "Honeycomb") announces that
the Investment Manager's monthly factsheet for 30 June 2022 is now available
on its website at http://www.honeycombplc.com
(http://www.honeycombplc.com/documents/) .
Net Asset Value per Share
The Company announces that its unaudited Net Asset Value ("NAV") per share as
at 30 June 2022 on a cum-income basis was 1,019.7 pence, based on a NAV of
£354.2 million, and on an ex-income basis was 1,019.3 pence, based on a NAV
of £354.1 million. The NAVs have been calculated by Apex Fund Services (UK)
Ltd.
Honeycomb delivered a NAV return of 0.69% for the month, which is equivalent
to 8.4% per annum. NAV return was driven by strong risk adjusted yield of
9.2%. Net Investment Assets remained broadly stable in the month at £583m
with cash received from the recent Oplo Mortgage Portfolio sale being
re-invested.
Pollen Street Credit had another active quarter for deployment completing a
number of new transactions and facility upsizes. These include a £65m senior
facility to Ark, a Swedish lender focused on providing financing to European
technology businesses with each loan benefiting from a 70% principal guarantee
from the European Infrastructure Fund; a £65m senior facility to TIER, the
leading micro-mobility business in Europe; a £50m senior facility to Splend a
vehicle leasing and financing business focused on the ridesharing and delivery
driver markets in the UK and Australia; a €50m facility to Earlsfort, a
residential development finance lender in Ireland; and we upsized our senior
facility to iwoca by £25m, financing their UK SME portfolio. Honeycomb
participated in a number of these transactions.
The pipeline of new opportunities is strong with over £400m of transactions
in documentation or late stage DD across a range of end subsectors including
insurance run off, SME asset backed and probate finance. The broader European
pipeline is standing at over £2bn and is well diversified across subsectors
and asset classes.
The broader macro environment remains uncertain with a number of risks and
concerns with the impact of inflation and higher interest rates the most
immediate threat albeit offset somewhat by continuing high levels of
employment and rising nominal wages. We are monitoring the performance of the
underlying assets closely and we are still seeing very consistent and good
performance. We are factoring in the impact of higher prices and interest
rates when underwriting and structuring and are also seeing opportunities in
sectors with low correlation to the macro. The uncertain environment is also
presenting opportunities and we are taking the opportunity to increase returns
on new transactions alongside continuing to ensure prudent LTVs such that our
investments are able to withstand significant stresses without impairment.
At the General Meeting of the Company held on 1 June 2022, shareholders
approved the Company's proposed combination with Pollen Street Capital
Holdings Limited ("Pollen Street") (the "Combination"). The Company and Pollen
Street are finalising the remaining conditions precedent to complete the
Combination within the coming weeks. The key timing dependency for completion
is the receipt of remaining change in control approvals from certain
regulators with oversight of firms within the Pollen Street Group, and the
funds it manages or advises. Pollen Street and the Company have filed all
documentation requested by those regulators, and the Financial Conduct
Authority and Prudential Regulation Authority approved the change in control
on 1 August. The Company will update shareholders when the remaining
approvals have been received and completion can proceed.
For further information about this announcement please contact:
Pollen Street Capital - Investment Manager
Matthew Potter / Julian Dale: +44 (0)20 3728 6750
Barclays Bank PLC - Joint Broker
Neal West / Dion Di Miceli / Chris Madderson / Stuart Muress: +44 (0) 20
7623 2323
Liberum Capital Limited - Joint Broker
Chris Clarke: +44 (0)20 3100 2000
Cenkos Securities plc - Joint Broker
Justin Zawoda-Martin: +44 (0)20 7397 8900
Link Company Matters Limited - Corporate Secretary
hitcosec@linkgroup.co.uk (mailto:hitcosec@linkgroup.co.uk)
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