H1 growth ahead of expectations

S&U 11 August 2022 Update
Download PDF

S&U

H1 growth ahead of expectations

H123 update

Financial services

11 August 2022

Price

2,350p

Market cap

£285m

Net borrowings (£m) at 31 July 2022

154

Shares in issue

12.1m

Free float

27%

Code

SUS

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

5.9

1.8

(20.8)

Rel (local)

1.1

(1.9)

(21.6)

52-week high/low

2,950p

2,020p

Business description

S&U’s Advantage motor finance business lends on a simple hire-purchase basis to lower- and middle-income groups who may have impaired credit records that restrict their access to mainstream products. It has c 63,000 customers. The Aspen property bridging business has been developing, following its launch in early 2017.

Next events

H123 results

27 September 2022

Analysts

Andrew Mitchell

+44 (0)20 3681 2500

Martyn King

+44 (0)20 3077 5745

S&U is a research client of Edison Investment Research Limited

S&U’s lending growth has been ahead of expectations in H123, despite relatively weak consumer confidence and a conservative underwriting policy. Credit quality has also remained high and the group continues work to underpin this for the future. This and the group’s experience of previous credit cycles should stand it in good stead to address the potential pressures arising from economic headwinds.

Year end

Revenue
(£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

01/21

83.8

18.1

120.7

90.0

19.5

3.8

01/22

87.9

47.0

312.7

126.0

7.5

5.4

01/23e

100.2

40.3

268.9

130.0

8.7

5.5

01/24e

109.4

43.1

269.7

133.0

8.7

5.7

Note: *PBT and EPS are reported. EPS are diluted.

Positive trading update for May to July

S&U acknowledges the uncertain economic background, with growing pressure on household incomes, but its trading update ahead of its H123 results (due 27 September) is positive. Growth in lending has been ahead of budget and expectations, resulting in total receivables of £370m at the end of July, compared with £340m at the time of the AGM update in May and above our previous full year estimate of £366m. At Advantage, motor finance applications remain strong and transactions in the period rose by nearly 25% y-o-y, with receivables increasing from £268m in May to c £280m. Credit quality is also high with strong collections, lower bad debts and reduced voluntary terminations. Further scorecard revisions and increased affordability buffers have been introduced to allow for the impact of inflation on customers. Aspen property bridging net receivables were £90m versus £72m in May. As the business has become more established, it has attracted more experienced borrowers contributing to a higher average loan size (£875,000), boosting growth while resulting in a slightly lower average book yield.

Estimates increased slightly

Mindful of the uncertain macroeconomic and political background we have taken a measured approach when updating our estimates. We have allowed for the growth in receivables in H123 but assume the growth rate moderates in H223 and FY24. We have also allowed for an increase in the cost of funding and some increase in staff and other costs with inflation. The net effect is an increase in estimated EPS for FY23 and FY24 of 2.6% and 1% respectively.

Valuation

S&U shares trade on a prospective multiple of under 9x on our revised earnings forecast and a yield of over 5%. An ROE/COE model implies a cautious market expectation of a sustainable return on equity of 13%, compared with our estimate of more than 15% for the current year.

Background

Here we provide an update on some of the indicators we monitor when assessing trends in the markets for the Advantage and Aspen businesses.

Exhibit 1 shows recent independent economic forecasts collected by HM Treasury. Since May, when we published a note following S&U’s AGM update, GDP forecasts have been reduced (for 2023 from 1.4% to 0.8%). The expected level of unemployment is virtually unchanged, reflecting the current starting point of a particularly tight labour market. In its August Monetary Policy Report the Bank of England, in its baseline projections, looks for a slightly higher rate of unemployment at 4.4% in Q3 of CY23 than the average (for Q4) shown below. However, it does see this rising, to 5.5% and 6.3% in the following two years, given a weaker growth outlook, potentially introducing greater slack in the economy. On inflation, both independent and Bank of England forecasts have increased markedly. For Q3 of CY23 the Bank expects the rate to remain above 9%: towards the upper end of the range of independent forecasts shown below.

Exhibit 1: Comparison of independent economic forecasts for the UK (July)

%

Average

Low

High

GDP growth

2022

3.7

3.0

5.6

2023

0.8

0.0

2.2

Labour Force Survey unemployment rate Q4

2022

4.0

3.3

5.0

2023

4.1

3.2

4.8

Inflation Q4 (CPI)

2022

9.0

5.8

11.1

2023

3.6

1.1

12.6

Source: HM Treasury

Exhibit 2 shows how consumer confidence staged a major recovery last year before falling sharply again through a combination of the arrival of the Omicron wave, growing concern over the cost of living and the war in Ukraine. The most recent reading shows a levelling off in the decline. Cost-of-living pressures are potentially particularly relevant for Advantage customers, although the company has previously noted that wages are likely to adjust and that its customers tend to depend on their vehicles for transport to work. Advantage has made an allowance for the rise in inflation within its affordability calculations. It remains to be seen what the impact of possible further government measures to mitigate cost pressures will be.

Exhibit 2: GfK UK consumer confidence indicator

Exhibit 3: UK redundancies and unemployment

Source: Refinitiv (last value July 2022)

Source: ONS (last value May 2022)

Exhibit 2: GfK UK consumer confidence indicator

Source: Refinitiv (last value July 2022)

Exhibit 3: UK redundancies and unemployment

Source: ONS (last value May 2022)

In Exhibit 3 we can see that, after an increase in 2020, the unemployment rate has since moved noticeably below prior levels. The level of redundancies, a more immediate measure, saw a very sharp spike as the pandemic took hold, but fell rapidly and is now clearly below pre-pandemic levels. As discussed above, some increase in these measures seems likely in due course given the trend in forecasts.

Next, we look at data on used car transactions and used car finance. Exhibit 4 compares the monthly sales pattern in the four years from 2019–22. This highlights the sharp drop in used car transactions in April 2020, but volume recovered very well following the initial lockdown. From April 2021 activity was close to pre-pandemic levels, as represented here by the 2019 monthly figures, although supply limitations resulting from constraints on new car production tempered volumes. This remains a factor in 2022 and first-half used car transaction volume was down 13% compared with the first half of 2019. Exhibit 5 shows a similar pattern in used car finance, with seasonal dips evident in addition to lockdown impacts. Calendar 2022 started strongly although the trend in Q2 has been weaker than in Q1, with a small decline in car finance transaction volumes year-on-year, while the value of loans has still increased.

Exhibit 4: Monthly used car transactions 2019–22

Exhibit 5: Used car finance through dealerships

Source: SMMT (last value June 2022).

Source: Finance and Leasing Association (last value June 2022).

Exhibit 4: Monthly used car transactions 2019–22

Source: SMMT (last value June 2022).

Exhibit 5: Used car finance through dealerships

Source: Finance and Leasing Association (last value June 2022).

Used car prices (see Exhibit 6) were buoyant in 2020 and then experienced a very sharp step up from mid-2021, with strong consumer demand and reduced supply pushing prices up. Since February this year the index has seen small month-on-month decreases (see Exhibit 7), suggesting a slight softening of demand and/or easing of supply constraints. Nevertheless, prices remain at a historically high level and, as evidenced by the transaction and finance data above, demand is also still relatively strong. At the margin a fall in auction prices, prompted by reduced demand or greater supply, would be a negative for Advantage, but its exposure here through repossessed car sales is moderated by the relatively low value of the vehicles it finances.

Exhibit 6: Second-hand car price index

Exhibit 7: Monthly change in second-hand car prices

Source: ONS CPI index (last value June 2022)

Source: ONS CPI index, m-o-m % change

Exhibit 6: Second-hand car price index

Source: ONS CPI index (last value June 2022)

Exhibit 7: Monthly change in second-hand car prices

Source: ONS CPI index, m-o-m % change

Turning to the background for Aspen Bridging, Exhibit 8 shows the number of UK non-residential and residential transactions, with residential being most relevant for Aspen. Both saw sustained improvement following the initial lockdown in 2020, with residential data fluctuating sharply as buyers sought to take advantage of the temporary increase in the stamp duty land tax nil rate band. The latest reading, for June 2022, shows an activity level similar to pre-pandemic levels. Reduced consumer confidence and higher interest rates may affect prospective transaction volumes. However, on a longer view, S&U sees an imbalance between supply and demand for good-quality homes as a favourable backdrop for its customers who are refurbishing and developing properties. As a small business, Aspen should also have significant scope for expansion now that it is more established in the market. As noted in the update statement, it has recently been attracting more seasoned borrowers, which has contributed to a larger average loan size.

Exhibit 8: UK property transactions (seasonally adjusted)

Source: HM Revenue & Customs. Note: Figures for April to June 2022 are provisional. SA = seasonally adjusted.

Estimate changes

Following the trading update, we have adjusted our estimates with the key figures shown below and further details given in the financial summary (Exhibit 9). The main changes we have made in our assumptions are to increase the growth in customer receivables to reflect the progress made in the first half of FY23, while factoring in more moderate growth in the second half and FY24. We now look for year-end net customer receivables of £393m and £423m for FY23 and FY24 respectively (previously £366m and £399m). Interest cost is increased to allow for higher rates and funding the larger loan book. S&U notes that administration costs are being controlled within budget, but we have assumed a marginally higher cost income ratio to allow for staff and other cost increases with higher inflation. The cost of sales is also higher on increased assumed transaction volumes.

Exhibit 8: Changes to estimates

Year-end
January

Revenue (£m)

PBT (£m)

EPS (p)

DPS (p)

Old

New

Change (%)

Old

New

Change (%)

Old

New

Change (%)

Old

New

Change (%)

FY23e

95.6

100.2

4.9%

39.3

40.3

2.6%

262.0

268.9

2.6%

130.0

130.0

0.0%

FY24e

105.8

109.4

3.5%

42.7

43.1

1.0%

267.0

269.7

1.0%

133.0

133.0

0.0%

Source: Edison Investment Research

Valuation

Unsurprisingly, the trading update prompted share price strength following a period of weakness. Even so, on our revised numbers, S&U trades on a prospective multiple of 8.7x for FY23. At a share price of 2,350p, an ROE/COE model with an assumed cost of equity (COE) of 10% and long-term growth of 2% suggests the market is assuming a return on equity (ROE) of 13%. This compares with our estimate of over 15% for FY23.

Exhibit 9: Financial summary

£'000s

2018

2019

2020

2021

2022

2023e

2024e

Year end 31 January

PROFIT & LOSS

Revenue

 

 

79,781

82,970

89,939

83,761

87,889

100,221

109,428

Impairments

(19,596)

(16,941)

(17,220)

(36,705)

(4,120)

(16,213)

(19,910)

Other cost of sales

(17,284)

(15,751)

(19,872)

(14,264)

(18,771)

(22,906)

(22,747)

Administration expenses

(9,629)

(10,763)

(12,413)

(10,576)

(13,679)

(14,031)

(15,320)

EBITDA

 

 

33,272

39,515

40,434

22,216

51,319

47,072

51,451

Depreciation

 

 

(294)

(414)

(450)

(520)

(529)

(482)

(449)

Op. profit (incl. share-based payouts pre-except.)

 

 

32,978

39,101

39,984

21,696

50,790

46,590

51,001

Exceptionals

0

0

0

0

0

0

0

Non recurring items

0

0

0

0

0

0

0

Investment revenues / finance expense

(2,818)

(4,541)

(4,850)

(3,568)

(3,772)

(6,265)

(7,885)

Profit before tax

 

 

30,160

34,560

35,134

18,128

47,018

40,325

43,117

Tax

(5,746)

(6,571)

(6,252)

(3,482)

(9,036)

(7,662)

(10,357)

Profit after tax

 

 

24,414

27,989

28,882

14,646

37,982

32,664

32,759

Average Number of Shares Outstanding (m)

12.1

12.1

12.1

12.1

12.1

12.1

12.1

Diluted EPS (p)

 

 

202.4

232.0

239.4

120.7

312.7

268.9

269.7

EPS - basic (p)

 

 

203.8

233.2

239.6

120.7

312.8

269.0

269.8

Dividend per share (p)

105.0

118.0

120.0

90.0

126.0

130.0

133.0

EBITDA margin (%)

41.7%

47.6%

45.0%

26.5%

58.4%

47.0%

47.0%

Operating margin (before GW and except.) (%)

41.3%

47.1%

44.5%

25.9%

57.8%

46.5%

46.6%

Return on equity

16.7%

17.6%

16.8%

8.1%

19.6%

15.2%

14.1%

BALANCE SHEET

Non-current assets

 

 

181,015

185,383

197,806

173,413

184,189

222,622

239,337

Current assets

 

 

84,178

95,430

108,275

111,426

143,040

175,198

189,008

Total assets

 

 

265,193

280,813

306,081

284,839

327,229

397,820

428,345

Current liabilities

 

 

(7,927)

(6,722)

(7,424)

(5,309)

(8,789)

(9,474)

(9,803)

Non current liabilities inc pref

(104,450)

(108,724)

(119,183)

(98,501)

(111,693)

(164,193)

(177,493)

Net assets

 

 

152,816

165,367

179,474

181,029

206,747

224,153

241,049

NAV per share (p)

1,276

1,375

1,493

1,490

1,704

1,847

1,987

CASH FLOW

Operating cash flow

 

 

(43,418)

10,530

4,946

32,940

(2,094)

(36,736)

3,350

Net cash from investing activities

(1,040)

(785)

(265)

(1,112)

(284)

(310)

(310)

Dividends paid

(11,377)

(13,080)

(14,461)

(13,098)

(12,263)

(15,297)

(15,904)

Other financing (excluding change in borrowing)

12

14

14

2

1

0

0

Net cash flow

 

 

(55,823)

(3,321)

(9,766)

18,732

(14,640)

(52,344)

(12,864)

Opening net (debt)/cash

 

 

(49,167)

(104,990)

(108,311)

(118,077)

(99,345)

(113,985)

(166,329)

Closing net (debt)/cash

 

 

(104,990)

(108,311)

(118,077)

(99,345)

(113,985)

(166,329)

(179,193)

Source: S&U accounts, Edison Investment Research. Note: EPS on a reported basis.


General disclaimer and copyright

This report has been commissioned by S&U and prepared and issued by Edison, in consideration of a fee payable by S&U. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by S&U and prepared and issued by Edison, in consideration of a fee payable by S&U. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues