Hipgnosis Songs (SONG), PensionBee (PBEE), Saietta (SED) and Renalytix (RENX)
Embattled investment trust Hipgnosis Songs (SONG) has seen its net asset value (NAV) cut by 26 per cent as part of a review and in response has pushed back a return to paying dividends. The cut to the valuation takes it to £1.9bn, using a midpoint in the estimate.
Shot Tower Capital, a valuer hired by the trust's board, said in a preliminary report that around two-thirds of the portfolio's royalties came from "passive" rights where the trust does not control administration, distribution or the licensing of a song, although this figure was expected to fall to between 40 and 45 per cent. The trust’s share price fell 13 per cent on the news, taking the discount to 41 per cent using the new NAV per share of 93p.
"Due to the decrease in operative NAV the board considers it appropriate to reduce gearing and therefore intends to use the company's free cashflow to pay down debt and, therefore, does not intend to recommence paying dividends for the foreseeable future," the trust added. DB
Read more: Hipgnosis Songs Fund: heart of gold or heart of glass?
PensionBee to expand to the US
Shares in pension consolidator and adviser PensionBee (PBEE) ticked higher after the company announced an expansion into the US market via a partnership with a local financial services company. The new entity will be established as a subsidiary of Pensionbee in Delaware and will be financed by the UK company’s own resources. Management sees the potential for Pensionbee’s US business to at least match the scale it has achieved in the UK. Additionally, the company expects to be profitable at an adjusted cash profits level in this financial year. So far, this is only a subsidiary move and not an attempt at a full listing. JH
Takeover bid boosts troubled Renalytix
Kidney diagnostics group Renalytix (RENX) has received an unsolicited approach from “a large and well-capitalised” peer – sending its shares up by around 50 per cent this morning. Management has commenced the formal sale process, during which it will assess its options and work to ensure a good outcome for existing shareholders.
The company noted that, following this consultation period, the board could still decide that it wants to continue trading on both Aim and Nasdaq as an independent entity. The stock has largely been on a steep downward trajectory since December 2021. However, it soared by more than 400 per cent in the past month after the US Medicare federal insurance programme indicated it may subsidise one of the group’s flagship tests. JJ
