Capital Access Group advises companies on effective engagement with investors. We specialise in helping our clients with:
Capital Access Group advises companies on effective engagement with investors. Our experienced team offers market-leading access with a wide range of investors. This helps companies to improve their share price performance. Clients benefit from the team’s knowledge and strong relationships with these investors.
Capital Access Group tailors effective Investor Access programmes for companies ranging in size from AIM to FTSE100. We also work with funds involved in alternative asset classes. The objective is to improve the reach and engagement with investors, which in turn strengthens the share price.
- We target both large institutions and hard to reach investors
- These include smaller institutions, pension funds and Private Client Fund Managers
- These investors are often under-serviced and are located in London and across the UK and Europe
- These valuable investors represent a largely untapped pool of capital of around £700bn
Not only do we identify and target investors, we contact them directly and relay their views back to clients with analysis, interpretation and advice. This ensures that our clients are in control of their investor engagement. Additionally we advise clients on the key investment messages to promote that will appeal to these investors.
Long Term Relationships
Our experienced team maintains long-term relationships and regular contacts with our investors and provides a continuous flow of information to and from them. Capital Access Group has an unrivalled knowledge of these investors. We have been specialising in advising companies on their approach to engaging with these investors for over 15 years.
Whether as an individual project or a broader programme, our services are designed to complement and enhance a company’s wider investor relations and communications strategy. We work in conjunction with leading investment banks and stockbrokers to ensure an intelligent, cohesive approach to investor targeting.
Our Investor Analytics service provides companies with detailed and relevant insight into investor behaviour. This enables companies to focus their time on the right investors. Our team interprets data about investors both on the register and across the market. This results in a more efficient use of management time, ensuring that investors are targeted more effectively.
Each client engagement is underpinned by the following objectives:
- To free up valuable management time by carefully targeting the right investors
- To enhance outcomes through clearly communicated and actionable insights
- To tailor our approach to different client objectives and workflows
Our client engagements encompass three key areas:
We seek to understand the composition and strength of a company shareholder register through a detailed analysis of individual holders, their history, fund mandates and performance.
Drawing together data from numerous sources, we can build a comprehensive, client relevant picture of investor activity. This identifies investors who will have the most impact, their fund styles, their strategic direction and the market dynamics effecting that direction.
We believe the traditional over / underweight targeting approach is only the first step. We believe the more important question: “Why is an investor over or underweight?”
Our approach to targeting seeks to answer that question leveraging the insights created elsewhere by our Investor Analytics.
Equity Research helps to promote a company’s investment story. It is distributed to a wide range of investors. We offer this service as part of an integrated investor communications strategy. We can provide a range of research products depending on the nediscover
S&U - Quick Take
Today’s trading update shows that both divisions, Advantage Finance and Aspen, continue to perform well. Advantage has outshone its market, providing more loans (transactions “ahead”) than last year despite lower consumer confidence. Aspen has continued to grow profitably, though has not met management expectations due to a housing market in which transactions fell 9% YoY in the quarter. In light of this the 47% growth in the loan book, albeit from a low base, is doubly impressive. We see nothing in this update to lead us to change our forecasts at this stage, as both divisions are trading within our expected range.We will provide a full update upon release of the half year results on 24th September 2019.
Gordon Dadds Update Note
FY 2019 closed with the acquisition of Ince UK and FY 2020 opened with the consolidation of the international offices and the acquisition of Gibraltar-based Ramparts, both of which further validate the exciting potential of the Gordon Dadds business model.
SIG - Consensus in Detail Update - 5th July 2019
SIG is actively covered by 14 investment analysts, 13 of whom provide a full set of forecasts for 2019 and 2020. These are anonymised to form the basis of this analysis. The analysis provides detail on forecasts for the following four key financial metrics; PBT, EPS, DPS and Headline Financial Leverage
Randall & Quilter - Update Note - Ramping, & Quickly
The full year results released at the end of April met revised expectations and guidance given that they were impacted by the delayed completion of several Legacy acquisitions. These transactions, including Global Re, have now closed and will feature in 2019 results. In the meantime, Randall & Quilter’s strategy to invest in two key businesses with different capital requirements and complementary earning patterns is bearing fruit. Legacy continues to provide opportunities for growth, with a strong pipeline and market tailwinds. This is also a Brexit proof and recession resistant model. The completion of the Global Re deal is transformative, and demonstrates that large scale transactions are achievable. Program Management hit its ambitious Contracted Gross Written Premium target for 2018, and growth continues apace as the competitive advantage of its high-quality insurance paper pays dividends in a market in which many Lloyd’s insurers are reducing their new business In other developments, the successful capital raising, the AM Best ratings upgrades, and inclusion in the AIM 100 index are all positive developments. Finally, the question over succession planning, which had been of concern to some investors, has been convincingly answered. In summary demand is strong in both businesses, the platforms are scalable, and the respective markets are changing shape in favour of Randall & Quilter’s offering. The balance sheet is in good shape and ready for further acquisitions. Management continue to be adaptive and entrepreneurial, and yet maintain a sensible approach to risk. As a result of all this, we expect the business to continue to perform well. Consensus is thin due to the limited coverage, but forecasts for Randall & Quilter’s adjusted 2019 EPS come in at around 18p/share. Consensus distribution and Net Tangible Assets (NTA) per share also increased. The valuation remains undemanding, at a 5.2% yield and a significant P/E discount to the larger Life consolidators.
SIG - Consensus in Detail - 8 May 2019
SIG is actively covered by 16 investment analysts, 14 of whom provide a full set of forecasts for 2019 and 2020. These are anonymised to form the basis of this analysis. The analysis provides detail on forecasts for the following four key financial metrics; PBT, EPS, DPS and Headline Financial Leverage
S&U Update Note - Positive Results Overall
This week’s preliminary results from S & U confirmed the trends highlighted in the trading update in February. The core Advantage non-prime motor finance business posted its 19th consecutive year of profit growth. This despite headwinds which saw an increasingly competitive market combined with S & U’s decision to impose stricter underwriting criteria, which caused a fall in the total number of loans outstanding. Notwithstanding increased competition, Advantage’s relatively low market share (c. 1.0%) in a UK second hand car market growing at 7.0% suggests some immunity. Aspen Bridging Finance continued to grow, adding 62 loans at an average size of £375k in the year and taking the total book to £18.3m after the repayment of £18.3m, including up-front retentions. The book is guided to reach £30m by the end of calendar year 2019.
S&U - Update Note
This week’s trading update from S & U confirmed the trends highlighted in December. The market for its core Advantage non-prime motor finance business remains positive notwithstanding UK economic uncertainty and greater competition. Since the November 2018 decision to increase investment in the bridging business, Aspen Bridging Finance’s experience has been positive. This fledgling business is set to contribute to earnings in the year to January 2019. We reflected the slower pace of Advantage loan growth in forecasts immediately following December 2018’s trading update, and do not feel further adjustments are necessary based on the release yesterday. Current year and 2020/21 income (PBT, EPS and DPS) forecasts, however, are adjusted further to reflect the slower loan growth at Advantage in 2018 and our expectation that this will continue for at least the first half of calendar 2019. We view this as a timing issue and one which highlights the continuing benefits of S & U’s approach. It continues to invest in its market-leading systems, is a sensible competitor and maintains a healthy funding position.
Gordon Dadds Update - Acquisition of Ince UK & Placing
With the acquisition of Ince UK, Gordon Dadds completes a transformative 2018 and starts 2019 actively with an over-subscribed placing. Ince UK brings over £30.0m of expected annual fee income, a significant addition to the Group’s skill-set and the scope for considerable cost synergies. In the last 12 months, it has acquired almost £40.0m of potential new revenue through four acquisitions for a total of £35.0m and an initial outlay of less than £15.0m. This is a testament to the Group’s innovative operating model and its attractiveness to both firms and fee earners alike. Given the potential scale of Ince UK, our 2020 forecasts increase substantially while we have also raised our current year estimates to reflect the Ince deal and the growth apparent in the interim results. With £11.5m raised by February 2019, the Group should finish the current year with net cash. Based on our DCF approach, its theoretical value is measurably above the current level.
S&U Update - Prudence & Sense
The trading update (7th December 2018) confirmed that S & U’s strategy is progressing according to plan. Specifically, against an uncertain economic backdrop, it has continued to impose tighter lending criteria at Advantage (motor loans) while it is proceeding cautiously with Aspen Bridging Finance (residential refurbishment). In combination, this has prompted slight reductions in our top of the range profit forecasts, but it has served, also, to reduce our expectations for net debt. Thus, we believe that S & U is improving prudently the quality of its medium-term loan book while sensibly maintaining its ability grow this further as uncertainty subsides.
We work with our clients to promote and build their investment case and reputation with equity markets investors and commentators. Our team is engaged by clients either as a part of a wider integrated approach, or through a bespoke PR or IR programme.
Our team has significant experience of helping our clients present a clear investment message.
Our advice can help companies present a complicated story in a simple, clear and effective manner. By understanding the outcomes that our clients want to achieve, we can draw upon our expertise to create a tailor-made approach to how they communicate with the equity market investors. This can be vital in helping companies stand out in a crowded market place and achieve an improved rating.
The team also helps companies promote their investment case to a wide range of important market participants. Our independent, strategic advice supports our clients’ objectives, without being conflicted and we build long-term, trusted relationships with our client companies.
Our programmes include:
- Helping clients to deliver a clear, succinct investment message
- Crisis communications – rapid support and advice
- Support during fund raising projects including IPO preparation and secondary fund raisings
- Communications advice and support during M&A situations including hostile bids and helping companies during bid defences
- Directing how clients manage their approach with sell-side equity research analysts
- We advise on engaging with the financial media and help manage relationships with journalists and market commentators
We work with our clients on a standalone basis, or as part of a wider integrated service. This allows companies to benefit from a holistic approach to their entire Investor Communications programme.
Our team has deep and broad complementary experience from both the investment banking and communications industries. This enables us to provide high quality joined-up thinking and strategic advice to quoted companies of all sizes.
At the heart of everything we do is thinking.
Our executives are drawn from both the buy side and the sell side and/or have experience themselves as directors of quoted companies. This enables us to provide high quality input based on knowledge, understanding and analysis to provide coherent strategic advice and guidance.
- We advise our clients on how best to prepare their message
- The Investor Analytics team analyses who they should be targeting
- Our Investor Access colleagues give them access to those investors
- Our Equity Research analysts write research to disseminate that message.
We provide the most effective advice on all aspects of investor communications from setting strategy to implementing it.
Investment Companies have increasing marketing opportunities, taking advantage of continued changes in the UK savings markets. This is in response to the regulatory demands of the Retail Distribution Review and the recent changes to Pension legislation.
Boards of Investment Companies are applying more focus on marketing to investors directly. They are considering the range of marketing channels and how they target different groups of investors.
Capital Access Group is able to help Investment Companies make the most of their programmes to target and reach investors.
- Our service includes advising on Investor Access programmes to target Institutional and Private Client Fund Managers, as well as selected IFAs. We also target specialist sector investors including fund of funds
- Our team writes and distributes a Quarterly Investment Company newsletter, including surveys on trends and market developments
- Targeting of investors achieved through relationships with central research teams and knowledge of individual portfolio managers investment interests
- Our clients in this sector focus on the smaller niche fund groups and offshore Investment Companies
Investor Perception Surveys
We offer in depth, targeted investor perception surveys through our ‘Capital Access Insight’ service. Our scientific approach to perception surveys helps Boards and senior management understand investor views and behaviours, and maximise the efficiency of ongoing IR activities.
Our differentiated offering provides a unique insight into investor dynamics. Our methodology uses extensive data analytics to evolve opinions and investor strategies further, going beyond the traditional services available in the market today.
Perception surveys offer an excellent way of exploring the views of investors. Increasingly, companies are working with specialist firms to get right to the heart of what their shareholders think. Investor perception surveys can help PLC Boards shape their strategy and messaging. Capital Access Insight gives our clients the tools they need to understand the views of their investors.
We help companies make the most of their programmes to reach investors in Europe by offering Investor Access on the continent through our Zurich-based affiliate.
Our studies show that European investors outside the UK currently have over £200bn invested in UK companies. It is important for UK PLCs who want to diversify their shareholder register to be able to access these markets.
We provide clients with effective Investor Access programmes in major European financial centres across Northern Europe and Scandinavia, including:
Capital Access works with our Zurich-based affiliate Leti McManus, who specialises in facilitating investor roadshows across Europe. Together with Leti we can target a wide range of investment opportunities for not just large but also medium-sized UK listed companies who are looking to expand their investor base.