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
Randall & Quilter Initiation Note - Radical & Quality
Randall & Quilter has undergone a transformation over the last two years; simplifying its operating model, releasing cash, and developing an exciting Live (Program Management) business which promises to provide a key balance for its core Legacy business in terms of earnings visibility, capital use, and cash generation. The company’s interim results reported several key milestones in both areas, notably the largest ever Legacy acquisition and significant future Gross Written Premiums for Program Management. An announcement which exuded optimism highlighted the potential for current year profitability to be strong and, possibly, ahead of expectations. Longer term growth is likely to come from a more balanced combination of Legacy and Program Management earnings with the potential for greater cash generation. Accordingly, consensus forecasts for adjusted 2018 EPS have increased by over 30.0% while both distribution and Net Tangible Assets per share moved higher.
S&U Trading Update Note
S & U’s interim results broadly confirmed our forecasts and the strength of the business model. The company is deliberately increasing its underwriting criteria in motor lending (Advantage) in the face of still rising demand. We believe that this will result in declining impairment charges, relative to revenue, from the latter half of (calendar year) 2019 onwards. Together with the prospect of a positive decision on the Aspen Bridging Finance pilot, we are now more confident of the medium-term outlook for S & U. In the short term, loan growth is likely to continue to be slow while impairment may still rise as a function of the complexion of the historic loan book. However, we don’t believe this will be material, so are content to leave our forecasts unchanged across the timeframe. On value, the company’s peer group has experienced share price weakness of late, reducing the comparative ratios, while S & U has seen its market value rise. However, despite these movements, theoretical value remains over 20.0% above the current share price level.
S&U PLC - Cautiously Positive Trading Update
S & U’s trading update reinforced the positive messages contained in May’s AGM statement. Average monthly applications for Advantage (non-prime motor lending) have continued to grow, allowing the Group to further improve new loan quality. As a result, while lending growth lags total demand, the potential for lower impairment charges in the medium term has increased in our view. Current year impairment is likely to be slightly higher than we previously forecast but we are confident that slower cost growth elsewhere will mitigate this impact on earnings. More importantly, we believe that impairment charges are likely to peak in the current year and could start to fall by the end of calendar 2019. This is critical to the Group’s status within the sector. It has continued to build the Advantage customer base at the same time as improving the quality of the associated loan book. This augurs well for 2020 and beyond; an outlook which is not fully recognised in the current valuation.
GlobalData - Interim Results Update
Interim results confirm several positives for GlobalData. It has reported significant organic growth in key metrics. This should continue given the increase in deferred revenue, much of which will contribute to H2. Integration of the recent acquisitions (MEED and RVL) appears to be going well, bringing new addressable markets to bear. Finally, cashflow dynamics are positive, supporting the ability to make further acquisitions in a sector with scope for consolidation. The Group’s growth status is reflected in relatively high short-term ratios. However, on longer term cashflow analysis, theoretical values are all higher than the current level.
Savannah Petroleum - Equity Datasheet
Savannah Petroleum is a British independent oil and gas company focused around oil and gas activities in Niger and Nigeria.
Totally plc - Great Progress, Great Prospects
Having completed the transformational Vocare acquisition and added to its already well experienced management team, Totally is now tasked with grasping a very significant opportunity within UK healthcare. The NHS’ direction of travel has been to address the impact of non-acute presentation at its hospitals. Totally is committed to building a business which provides this triage and a range of support services including, but not limited to, urgent care. While the company has not yet completed the “buy” component of its “buy and build” strategy, it has made significant strides while retaining a key cash generative quality. Final results, for the 15-month period to March 2018, highlight great progress and prospects. We believe that the share price does not reflect this, offering an equity value only just over the current net cash position. It is time for the market to reflect on the prospects for a unique company operating in high growth markets.
Gordon Dadds Update - Much more to come
Gordon Dadds’ final results for the year to March 2018 beat our forecasts and those of the market. Given the pace of growth, and the phasing of acquisitions which supported it, the potential for further gains stands out. It has been able to translate a near 26% gain in revenue into strong improvements in earnings, culminating in a debut dividend ahead of our estimates and a strong net cash position. Tellingly, Gordon Dadds is signalling “significant further growth” from acquisitions and, critically, organic sources such as cross-selling. It retains the financial firepower to achieve the former and, on the evidence of the final results, the momentum to build on the latter. In advance of further news on acquisitions we are content to retain our previous forecasts. However, these still support a theoretical value more than the current level, a value which is further supported by comparisons with listed peers.
S & U Update: Reassuring AGM Statement
Today’s AGM statement from S & U supports our view that the Group has built a solid basis from which to deliver further growth in returns, earnings and dividends in the short to medium term. We are encouraged by the rate of growth in monthly applications, customers and collections. All point positively to the Group’s position in the market and the nature of its non-prime car finance loan book. The impairment to revenue charge has increased but we believe that this is due to transitional mix changes which are being addressed by a more selective approach to recent underwriting. As a result, we see no reason to change our forecasts on the back of this statement. However, we raise our theoretical value to reflect the recent share price performances and valuations of the non-standard lending peer group. On a range of comparative ratios, we derive a theoretical value of 3396p; 6% higher than previously and 22% above the current share price.
S & U - Initiation Note: Playing to its Advantage
S & U is a testament to the fact that focused management, clear strategy and prudent accounting can produce superior returns in most markets. The company provides motor finance to the non-prime demographic in the UK. It has produced an unbroken record of profitability in this area for almost twenty years. As a result, S & U represents a pure play on non-standard finance and a potentially resilient segment of the UK car market; a near unique combination within the wider sector. Using an average of simple comparative valuation ratios, derived from the non-standard lending peer group, we believe that the shares have a theoretical value of 3218p or 39.9% higher than the current traded value
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.