Business
Trading Update - April 2016
Trading Update - April 2016.
About this update from Pollen Street Group Limited
[{"type":"text","content":"\n \nRNS Number : 0782V Honeycomb Investment Trust PLC 13 April 2016 \n\nNOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM), CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL\n13 April 2016\n \n \nHoneycomb Investment Trust plc (\"Honeycomb\" or the \"Company\")\nTrading update\n \nFurther to the portfolio acquisition announcement of 7 April 2016 (the \"April Portfolio Acquisition\"), Honeycomb is releasing a trading update.\n \nBased on the investments it has committed to and the currently available pipeline of investment opportunities, Honeycomb expects that the unlevered, net annual returns on loan investments as at full deployment of its IPO equity raise proceeds will be 12% or greater (after expected default losses and servicing costs), which compares favourably to the Company's targeted annual net return on loan investments of 10% or greater. \n \nSince its IPO in late December 2015, the Company has been investing its capital quickly and effectively and is well on track to be fully deployed ahead of the six to nine month period targeted. On completion of the April Portfolio Acquisition, the Company's investment activity will have consisted of:\n \n· Approximately £85 million invested in assets across portfolios and through organic origination partnerships;\n· A diversified and seasoned portfolio of over 32,000 loans to UK borrowers; \n· Regular origination is now occurring, principally through Freedom Finance at this stage, and a further 3 origination partners are being contracted with. Pay4Later has progressed well and retailer opportunities are being presented. Origination remains on track to increase to greater than £4m per month with a volume mix in line with expectations; and\n· The intended investment in Pay4Later disclosed in the Company's IPO prospectus is expected to complete later this month, which will take equity investments up to approximately £4.7 million.\n \nThe Company continues to progress discussions and ...