Simon Thompson covers Augmentum in his latest piece “Upgrading target prices” for Investors Chronicle.

“Augmentum cashed up for new investments

  • Record NAV per share.
  • Augmentum makes £22.8m investments post year-end.
  • Portfolio companies raised £185m equity during financial year.

Shares in Augmentum Fintech (AUGM:140p), the first publicly-listed fintech fund in the UK, rallied 24 per cent to an all-time high of 172p after I advised running profits (‘Exploiting share price dislocations’, 7 December 2020), having included Augmentum’s shares, at 102p, in my 2019 Bargain Shares Portfolio. The subsequent pull-back looks a buying opportunity to me and for investors backing Augmentum’s £40m latest fundraise (placing, open offer and subscription at 135.5p a share).

In the 2020/21 financial year, Augmentum booked £26.7m of unrealised gains, delivered 12.3 per cent higher NAV of 130.4p per share and an unrealised annualised IRR of 19 per cent. The fund’s largest holding, a 3.8 per cent stake in UK investment platform Interactive Investor (ii) has been revalued up by £10.1m to £32.6m, or 8.4 times cost. In 2020, ii delivered 46 per cent revenue growth (significantly ahead of budget) and 56 per cent higher pre-tax profit of £13.9m. Post the year-end, ii acquired investment platform Equinti for £48.5m which boosts assets under administration to £50bn and the customer base to 400,000.

Augmentum also booked £12m of cumulative unrealised gains from its other four largest holdings: Tide, an emerging force in the small- and medium-sized enterprises (SMEs) challenger banking sector that now has a 5 per cent market share and serves 320,000 SMEs; Onfido, a leading global provider of online identity verification that has attracted over 1,500 customers including online bank Revolut and cryptocurrency exchange Bitstamp; BullionVault, a company that offers private investors low-cost access to investment-grade bullion that doubled pre-tax profit to £10.7m in 2020, implying a read-through valuation multiple of 15 times profit on Augmentum’s holding; and Grover, the German technology rentals platform Grover that has just raised €60m in a Series B funding round. Augmentum has successfully exited investments, too, banking £10.5m proceeds from Dext (formerly Receipt Bank) which contributed £3m of realised gains.

New investments of interest include VOLT, a leading provider of resilient payment networks using open banking ‘rails’ as an alternative to traditional card ‘rails’; Epsor, a company that has developed a next generation workplace savings platform in France, providing facilities for both pension contributions and a tax advantaged bonus savings scheme; and Cushon, a company that is targeting a parallel workplace savings opportunity to Epsor but with focus on the UK market.

Priced on a modest premium to a conservative looking NAV, I feel that the prospects of the investment manager delivering another strong performance this year is being underrated. I estimate fair value around 160p. Buy.”

 

Read full article here (behind paywall) 

Georgie Hazell

Georgie heads up engagement at Augmentum, which involves supporting portfolio companies, engaging with investors and the wider fintech ecosystem (including marketing and events), and supporting the team internally.

Georgie has worked in a number of startups across people, strategy and growth leadership positions. Following her MBA and a consultancy project with Crowdcube, Georgie moved into venture capital.

Passionate about diversity and inclusion, particularly in VC and entrepreneurship, Georgie founded women in tech network Elevate, led on UK expansion for Her Campus Media, volunteers with Diversity VC and mentored with The Girls Network.

Ellen Logan

Ellen is an Investor at Augmentum. She previously worked at OC&C Strategy Consultants and at HR analytics startup Bunch, after studying Economics at the University of Edinburgh. Ellen has a particular interest in emerging technologies such as the digital asset economy and alternative payment methods.

Outside of the office she spends her time practicing yoga, experimenting in the kitchen and exploring the art galleries of London.

Learn more about Ellen in her ‘Meet the Team’ blog here

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Sofia Wiecko

Sofia oversees the financial and administrative operations at Augmentum and has over 15 years’ experience in financial accounting.

Believing in giving back to the community, Sofia is active in a number of local charities.

Hayley Manning

Hayley is Augmentum’s Office Manager and PA. Prior to working at Augmentum, Hayley worked at law firm Stephenson Harwood.

Nigel Szembel

Nigel leads Public Relations and Investor Relations at Augmentum. Nigel has had an international career in corporate affairs, communications and investor relations which, over 30 years, has included responsibility for UK, regional (EMEA and Latin America) and global functions; covering high-profile public companies, private companies, prominent individuals and public bodies, primarily in the financial services sector but also taking in consumer/fashion, planning policy, arts and the environment.

Akash Bajwa

Akash is an Investor at Augmentum Fintech. Prior to joining Augmentum, Akash worked at the Cass Entrepreneurship Fund, Barclays Ventures and Deloitte. Akash studied Accounting and Finance at Cass Business School.

Outside of work, Akash enjoys writing a blog on trends in technology and venture capital, runs ‘The European Tech Club’ on Clubhouse and volunteers with networks that support more investment in impact-driven companies in the private markets. Akash always looks forward to reading great books and playing tennis with friends as a way to unwind.

 

Learn more about Akash in his ‘Meet the Team’ blog here.

Reginald de Wasseige

Reginald (Reggie) is an Investor at Augmentum Fintech. Reggie started his career in private equity in Belgium (his home country), at Cobepa, and went on to explore entrepreneurship through founding a software company focusing on document security for large organisations. Off the back of both experiences, VC was a natural evolution and Reggie joined ABN AMRO Ventures, the venture capital arm of the Dutch bank, and relocated to Amsterdam. This first VC position introduced him to the world of fintech and was also the start of his international adventure.

Learn more about Reggie in his “Meet the team” feature here

Fareedah Daranijo

Fareedah is Augmentum’s Digital Marketing & Operations Assistant.

Prior to joining Augmentum, Fareedah studied Business and Management at university and conducted various placements across sales, marketing and project management, including with Bosch in Germany.

Outside of work, Fareedah enjoys travelling, learning about different cities and cultures, and volunteering in the local community.