Pollen Street (POLN) H2 2023 earnings summary

Executive summary

• Strong 2023 results across both business segments, ahead of full-year targets; upgraded long-term financial guidance.

• Step-change in asset management earnings and fundraising supported growth, while investment-asset income remained consistent.

Financial highlights

• Fund Management Income was £49.2m, up 32% YoY; Fund Management EBITDA was £15.2m, up 79%.

• Group EBITDA rose 23% to £45.4m; profit after tax rose 23% to £40.4m, equivalent to 63p EPS.

• Income on Net Investment Assets was £30.2m, up 7% YoY; dividends increased to £32m.

• 2022 comparisons are shown on a pro forma basis as if the Combination occurred before 1 January 2022.

Outlook and guidance

• Total AuM guidance revised up to £10bn within 4–5 years; fee-paying AuM expected to exceed £4bn in 2024.

• Existing guidance for fee-paying AuM of £4–5bn by September 2024–2025 is expected to be met during 2024.

• Net Investment Asset returns are targeted to rise to low double digits within 2–3 years, up from the previous 8% long-term target.

• Long-term guidance maintained: average management fee of 1.25%–1.50%, performance fees and carry at 15%–25% of Fund Management Income, and adjusted EBITDA margin above 50%.