Hipgnosis Songs Fund's market cap reaches £1.25bn

 

By Emmanuel Legrand

Hipgnosis Songs Fund, the company launched by Merck Mercuriadis to invest in music assets, had deployed approximately £1.18 billion (€1.30bn) in total since its IPO two and a half years ago to buy 117 catalogues, representing 57,836 songs or shares of songs, according to the company's latest interim report 2020, ending September 30.

  The biggest investment during the six months to September 30 was Kobalt Fund 1, which brought in 33,000 additional copyrights, and pushed the company's market capitalisation to £1.25bn. The Guernsey-incorporated and London Stock Exchange-listed company generated £50.0m in revenues between April 1-Sept. 30 2020, up from £22.6m for the same period of 2019. Operating profit for the period before taxation was £11.99m (£12.6m in 2019).

Growth in songs valuation

  Reflecting on the six months to September 30, Mercuriadis wrote in the foreword to the report: "During this period of exceptionally challenging times, we have raised £426.4 million of new equity capital and over £200 million of debt capital, increased our dividend target securing our place as one of the biggest yielders in the FTSE 250 Index, and since IPO we have outperformed the FTSE 250 Index with a share price total return of 26.6%, and a Total NAV Return since inception of 37.9%, and most importantly acquired a further 63 iconic Catalogues."

  Hipgnosis chairman Andrew Sutch added that during the period, the company's portfolio’s value has "increased signicantly, driven by growth in song valuations as investors worldwide start to recognise the growing utility like income they produce, leading to a Total NAV Return in the 6 month period ending 30 September 2020, excluding the FX impact, for our shareholders of 11.6%."