Last close As at 05/08/2026
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Research: Financials
FinLab posted a strong NAV total return in H120 (+9.5%), driven by the solid share price performance of its only listed holding, Heliad Equity Partners (HEP). Moreover, HEP’s partial exit from its largest portfolio holding, German online broker flatex announced in July 2020, increases the likelihood of a higher management fee and potentially a performance fee in 2021 to be charged by Heliad Management, which is fully owned by FinLab. Meanwhile, FinLab’s portfolio holding, Authada, attracted a new investor, Italy-listed TMT company Tinexta, and the EOS VC Fund that is managed by FinLab has expanded its portfolio of blockchain projects.
FinLab |
Positive catalysts at portfolio holdings
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Financials |
Deutsches Eigenkapitalforum 2020
7 October 2020 |
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Analyst
FinLab is a client of Edison Investment Research Limited |
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FinLab posted a strong NAV total return in H120 (+9.5%), driven by the solid share price performance of its only listed holding, Heliad Equity Partners (HEP). Moreover, HEP’s partial exit from its largest portfolio holding, German online broker flatex announced in July 2020, increases the likelihood of a higher management fee and potentially a performance fee in 2021 to be charged by Heliad Management, which is fully owned by FinLab. Meanwhile, FinLab’s portfolio holding, Authada, attracted a new investor, Italy-listed TMT company Tinexta, and the EOS VC Fund that is managed by FinLab has expanded its portfolio of blockchain projects.
Heliad’s performance drives NAV return in H120
EPS was €0.47 in H120 (vs €0.84 in H119), affected by a 45% y-o-y decline in income from investments to €1.0m (due to lower management fees from Heliad Management, according to the company) and a 33% fall in the financial result to €2.4m (due to lower net write-ups on unlisted investments). These more than offset an 8% y-o-y reduction in operating expenses to €1.6m in H120. Having said that, FinLab delivered a solid 9.5% NAV total return (TR) in H120, backed by the strong share price performance of its only listed investment, HEP, which represented c 19% of its NAV at end H120 (as the share price was up 61% in H120). Since its establishment at the beginning of 2015, FinLab posted a NAV TR of c 25% pa, assisted by its main success story and largest portfolio holding, Deposit Solutions.
Focus on existing holdings and EOS VC Fund
FinLab has recently continued to focus on adding value to its existing fintech investments and expanding its portfolio of blockchain projects through the EOS VC Fund. The most notable developments in FinLab’s portfolio companies recently include HEP’s partial exit from the listed online broker flatex in July 2020, as well as onboarding a new investor at Authada announced in September 2020, which received a call option to acquire a 100% stake in the company. Management highlights that the COVID-19 pandemic has created business opportunities for some of its portfolio companies, while it acknowledges that others may need to revise their business models, but it is ready to support them with additional liquidity, if necessary. FinLab had €5.7m in cash at end H120 (vs €6.8m at end-FY19).
Valuation: Discount to NAV remains considerable
FinLab’s NAV per share was €29.70 as of end June 2020, relative to which the shares are trading at a 34% discount. HEP is trading at a discount of c 41% to its end-June 2020 NAV, with flatex remaining its major investment.
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Historical financials
Source: FinLab accounts |
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Research: Financials
Banca Sistema (BST) is an Italian speciality finance provider with factoring as its main activity. The long payment times that characterise public administrations (PAs) in Italy, together with EU-mandated late payment interest, create an attractive opportunity with low credit risk for a specialist lender such as BST. In consumer finance, BST has established a strong position in salary and pension-backed lending and has a small but growing pawnbroking business, providing alternative sources of growth and diversification.