Augmentum Fintech PLC (AUGM.L) Earnings Call Transcript & Summary

I'm pleased to share some highlights from our annual results for the year ended 31st of March 2024. Under the backdrop of ongoing challenging public market conditions, we continue to track our long-term IRR target of 20%. Our NAV per share after performance fee increased to 167.4p, an uplift of 7.8p versus 31st of March 2023. And the gross IRR on capital deployed since IPO now stands at 16%. Our portfolio of 25 fintech investments continue to demonstrate their long-term resilience in the face of ongoing macroeconomic challenges. Our top 10 holdings, which represent 81% of the portfolio value, have seen revenue growth at an average of 65% year-on-year. And in light of that growth rate are conservatively valued with an implied forward revenue multiple of 4.7x. Five of our companies are now cash generative, while the remaining have an average of 20 months cash runway. As it stands, the sum value of our top 3 positions in Tide, Zopa Bank and Grover, plus current cash, is just below our market capitalization. These positions continue to demonstrate their credentials as fintech market leaders, growing revenues by an average of over 1,300% since our investment. We have now delivered 6 exits from the portfolio since inception, with total realization standing at GBP 93 million. In the year, we exited Cushon and Onfido to strategic acquirers for a total of GBP 33 million. This represented a combined uplift of 30% of the last reported value, which further reinforces our approach to valuation. While the pipeline remains strong, we continue to apply pricing discipline and investment processes, being prepared to walk away when terms depart from business fundamentals. We have continued to build our profile and exposure across Europe. And this year, we led an GBP 8 million Series A round in Artificial Labs, a leading London-based insurtech. And I am delighted today to announce a new investment post period end in LoopFX, a next-generation infrastructure provider for institutional spot FX trading, where we have led their latest investment round. We have also continued to support the growth across our portfolio, making a number of follow-on investments, including in Tide and Volt, totaling GBP 11.8 million. Our strategy remains consistent. Strong investment discipline and fintech sector specialism applied to a proprietary pan-European deal flow, with a distinct value-add approach that resonates with exceptional founders. Augmentum Fintech remains a unique proposition to public market investors, not just in terms of our structure, but also in terms of the quality and diversification of the fintech exposure we offer. Our strong balance sheet leaves us well positioned to take advantage of what we expect to be a more favorable investment environment over the coming 12 months.