Pollen Street (POLN) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 performance, with profit after tax rising 35% to £23.6m and AUM reaching £4.5bn as of June 2024, further increasing to £4.8bn by July 2024.

• Fund Management EBITDA rose 54% year-over-year to £8.0m; asset management now contributes a growing share of group revenue.

• Successful fundraising for Private Credit Fund IV and Private Equity Fund V, with continued capital deployment and strategic balance sheet management.

• Appointed Lucy Tilley as CFO in June 2024.

• Well-capitalised balance sheet with 9.7% net investment return and £15.8m income on net investment assets.

Financial highlights

• Fund Management Income grew 23% year-over-year to £26.8m; EBITDA margin improved to 30%.

• Total income rose to £54.3m, with operating profit up 24% to £24.1m.

• EPS rose to 36.9p from 27.2p year-over-year.

• Interim dividend of 26.5p per share declared, totaling £16.5m.

• Net asset value at £585.5m as of 30 June 2024.

Outlook and guidance

• Targeting over £4bn of fee-paying AUM by end of 2024 and £10bn total AUM within 4–5 years.

• Return on net investment assets expected to rise to low double digits within 2–3 years.

• Management fee guidance of 1.25%–1.50% of average fee-paying AUM over the long term.

• Adjusted EBITDA margin expected to exceed 50% long-term; dividends of no less than £33m for 2024.

• Fund Management Income expected to grow with final close of Private Equity Fund V and further capital raises in Private Credit Fund IV.