11th Dec 2019 10:03
(Alliance News) - Hipgnosis Songs Fund Ltd on Wednesday said its earnings multiplied in the first half of its current financial year amid intensive acquisition activities.
In addition, the fund said it has purchased a music catalogue from producer, songwriter and multi-instrumentalist Jeff Bhasker.
Bhasker has collaborated on some of the "biggest, most successful and most influential" songs of the last 15 years, Hipgnosis said, including co-writing and producing Uptown Funk by Mark Ronson featuring Bruno Mars.
The catalogue also includes Ed Sheeran's Photograph, Drake's Find Your Love, Cam's Burning House, Lana Del Rey's album Born to Die, and Harry Styles' Sign Of The Times.
"You would be hard pressed to name a creator of the last 20 years that is more important than Jeff. He has been an essential part of amongst the most culturally important and commercially successful recordings of our time," said Hipgnosis Founder Merck Mercuriadis.
Turning back to the results, the Guernsey-registered music rights investor reported operating pretax profit for the six months to the end of September of GBP12.6 million, multiplied compared to GBP3.0 million a year earlier, as revenue jumped to GBP22.6 million from GBP7.2 million.
Hipgnosis operative net asset value increased by 5.0% to 108.46 pence a share.
Hipgnosis shares were trading 0.2% lower in London on Wednesday morning at 108.30 pence each. It started life on the Main Market in July 2018 about 104p.
The company said it has paid a 2.5p per share interim dividend and a 1.25p second interim dividend, putting it on track for its target payout of 5.0p for the year.
In the first half, Hipgnosis said it has invested a further GBP199.5 million across 15 catalogues, utilising the remaining proceeds from its initial public offering in 2018 as well as proceeds from a subsequent share placing, raising GBP141.5 million in April.
At the end of September, Hipgnosis's portfolio consisted of 27 catalogues with an aggregate acquisition value of GBP319.4 million.
Looking ahead, Chair Andrew Sutch said: "The company continues to work tirelessly to assemble a diversified portfolio of proven songs, sourced by our investment adviser."
"Our pipeline of catalogues remains very strong with a total investment value of over GBP1 billion, and our investment thesis remains as strong as it was at the time of our IPO," added Sutch.
By Evelina Grecenko; [email protected]
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