Investment In The Financial Technology Sector: A Special Report

Is your portfolio ready for the FinTech revolution?

Financial Technology, also known as FinTech, has become a buzz word for investors searching for early stage innovative companies which have the potential for substantial long-term returns.

Due to the relatively recent emergence of the sector, many FinTech companies are still in the start-up and early stage of the business cycle meaning it can be difficult for investors to gain exposure to the sector. In this report, we have detailed a number of companies listed on London’s main market, easily accessible to investors seeking exposure to this rapidly expanding area of finance through established companies.

Request this report now to discover:

 

  • UK-listed stocks leading the way in financial technology
  • Areas of finance set to be developed by ‘disruptor companies’
  • How your finances could be impacted by changes driven by FinTech
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Haughton Honey creates a buzz with crowdfunding campaign

More than 100 investors have backed an £80,000 crowdfunding investment campaign from premium honey brand Haughton Honey to support the next stage in the company’s growth. Just over four weeks into the campaign, around £52,000 had been pledged for investment. Haughton Honey founder Crispin Reeves said: “We’ve had a flood of inquiries from potential investors seeking more details and in order to process them and allow them time to consider the investment, we’ve extended the deadline for investment by two weeks,” he said. “I’ve been delighted to see so much interest in investing in Haughton Honey and in helping us to expand and meet the growing demand for our pure, raw honey.”
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Crispin Reeves, founder of Haughton’s Honey
  Cheshire-based Haughton Honey hopes to recruit more bee farmers and move onto the next stage of growth by attracting investors via crowdfunding platform, Crowdcube, in return for shares in the business. Since launching in 2014, the firm has steadily expanded and recently began supplying the fine food retailer Booths, as well as The Protein Works, a large sports nutrition brand owned by Alliance Boots, which has just launched a co-branded Cashew Nut Butter Luxe product containing Haughton Honey. The honey market within the UK is worth £119.5 million per annum, with healthy annual growth. UK sales of jams, spreads and honey grew 5.9% in the year up to October 2015, with growth in honey sales alone between 2014 and 2015 increasing by £9.8m year-on-year. The company, based at Radmore Farm, Haughton, bottles raw honey which comes straight from the hive, is cold extracted and never pasteurised which means that it retains all of the natural enzymes and proteins that make English honey so special. It is also 100% natural and pure and features traces of dandelion, chestnut, blackberry, clover and other wildflowers. Due to the high number of inquiries and strong demand for information, the timescale for investment has been extended until midnight on 27th May, to allow potential investors to get involved, and any investment in Haughton Honey through the Crowdcube project will attract Seed Enterprise Investment Schemes (SEIS) tax relief. A series of rewards are on offer for those who invest in Haughton Honey, including discounts, honey, bee farming experiences, and hotel, restaurant and cookery school vouchers. To find out more about the Crowdcube investment opportunity visit www.crowdcube.com For more information about Haughton Honey visit www.haughtonhoney.com Investments of this nature carry risks to your capital. The availability of any tax relief, including SEIS and EIS, depends on individual circumstances. You should seek independent tax advice. Approved as a financial promotion by Crowdcube Capital Ltd which is authorised and regulated by the Financial Conduct Authority (No. 620205).

Morning Round-Up: Fed hints at rate rise, Royal Mail, Thomas Cook results

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US Fed hints at June rate rise The US Federal Reserve have hinted that a rate rise could be on the cards in June, if economic date remains strong. The minutes from the committee’s latest meeting suggest the Fed are confident inflation is moving towards its 2 percent target, and a rate rise may follow. However, they mentioned the threat of external factors – including the EU referendum, which will fall a week after the Fed’s next meeting. Royal Mail beats expectations on cost-cutting measures The bank has kept interest rates between 0.25 percent and 0.5 percent since December, its first rate rise in nearly a decade. Royal Mail delivered slightly better-than-expected results this morning, showing the group’s cost-cutting measures are beginning to take effect. Adjusted operating profit before transformational costs rose 5 percent to £742 million in the year ended March 27, but pre-tax profit fell 33 percent to £267 million. An increase in parcel revenue was offset by a a decline in letter delivery. Royal Mail shares have fallen 2.85 percent to 493.50 (0836GMT). Thomas Cook shares take plunge over fall in Turkish holidays Tour operator Thomas Cook saw shares plunge over 17 percent this morning, after its summer figures were hit by a decline in bookings to Turkey. Summer bookings were down 5 percent in the first half of the year, but revenue grew to £2.67 billion. Its underlying operating loss rose by 5 percent to £163 million pounds, due to higher margins on package holidays. Thomas Cook are currently trading down 17.93 percent at 73.45 (0845GMT).
19/05/2016
 

Morning Round-Up: Burberry disappoints, Suzuki shares plunge, Japan beats recession

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Burberry to cut costs by 10 percent Luxury clothing retailer Burberry are set to overhaul operations in order to stay above competition in an ongoing tough market. The group has announced plans which aim to cut operating costs by 10 percent, it said on Wednesday, and deliver savings of at least £100 million by 2019. Burberry reported adjusted pretax profit of £421 million for the period to the end of March, and is expected to come in at the bottom of market forecasts in March 2017. CEO and chief designer Christoper Bailey commented: “While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to driver Burberry’s outperformance.” Suzuki shares plunge on emissions scandal Suzuki shares have plummeted 9 percent, after reports that it had become the latest carmaker to become embroiled in an emissions scandal. Japanese media reports reported that Suzuki had found a problem with its testing method, with chairman Osamu Suzuki due to present to Japan’s transport ministry later today. Shares are currently down 9.37 percent at 2613.00 (0820GMT). Japanese economy beats recession The Japanese economy expanded faster than expected in the first quarter of 2016, beating analysts expectations and fuelling speculation that the country’s economic measures may be starting to take effect. The economy grew at an annual rate of 1.7 percent between January and March, after slipping back in the final quarter of 2015.
18/05/2016

SABMiller sees results decline ahead of AB InBev acquisition

Global brewer SABMiller (LON:SAB) saw a decline in both profit and revenue for the 2016 fiscal year, in the group’s latest set of results in the run-up to its acquisition by AB InBev. Profit declined 16 percent to $4.074 billion in 2016, with revenue also taking a 10 percent hit on last year. However, group beverage volumes were up by 2 percent, with an 8 percent increase on its dividend payment. Alan Clark, Chief Executive of SABMiller, called the figures “good results”, adding that “achieving these results this year, notwithstanding economic and currency volatility and the distraction of the AB InBev offer is a testament to the dedication and hard work of our people.” Shares remain largely unaffected by the news, currently up 0.18 percent at 4218.50 (0806GMT).039xrL1HB-yA_beta (convert-video-online.com)
18/05/2016

De Beers signs 10 year agreement with Namibia

Anglo American subsidiary De Beers have announced a 10-year sales agreement with Namibia in order to “significantly increase” the quantity of rough diamonds made available for beneficiation. The deal – which is the longest ever made between the pair – is for sorting, valuing and sales of diamonds from Namdeb. It will mean $430 million of diamonds will be offered to the Namibia Diamond Trading Company every year. ANGLO American’s subsidiary De Beers and the Namibian government have signed a 10 year sales agreement, the resources group said on Monday after the market closed. De Beers CEO Philippe Mellier said in a statement: “This sales agreement – the longest ever between Namibia and De Beers – not only secures long-term supply for De Beers, but also ensures that Namibia’s diamonds will continue to play a key role in national socio-economic development long into the future.”
17/05/2016

Morning Round-Up: Oil prices bounce, Premier Foods strong, Apple up on Buffett investment

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Oil prices up, boosting Asia Oil prices have boosted markets globally after hitting six-month highs, after a decline in US production. Both Canadian and US crude have seen output disruptions, leading to a rise in prices. US crude rose 1.1 percent to $48.24 on top of a 3.3 percent increase in Monday, with Brent futures rising 0.6 percent to $49.29 per barrel. The jump in oil boosted shares in Asia, with both the Nikkei 225 and the Hang Seng up 1.13 percent (0830GMT). Premier Foods see strong sales British food group Premier Foods saw sales of branded foods rise 1 percent in the fourth quarter, after a disappointing rest of the year. The brands, which include Mr Kipling cakes, Oxo seasonings and Bisto gravy, saw flat sales across the 12 months to April before picking up markedly over the past three months. Full-year sales rose 0.6 percent and the company saw a pre-tax profit of £34 million after a significant loss last year. Chief executive Gavin Darby said in a statement: “Our strategy of investing behind our brands and bringing new innovative products to market continues to deliver very positive results, with six of our major brands growing on average +3.4 percent in the year.” Apple shares bounce on Buffett investment Apple shares closed up 3.7 percent in yesterday’s session after Warren Buffett announced a $1 billion stake in the tech firm. The investment represents a move away from the norm for Buffett’s investment fund, Berkshire Hathaway, who traditionally buy stakes in “value stocks”. Apple’s shares, which had sunk after a fall in demand, were too good an offer for Buffett’s stock-picking team,Todd Combs and Ted Weschler. The Apple holding makes Berkshire Hathaway the 56th largest shareholder. Apple shares are up a further 0.10 percent in after hours trade.  
17/05/2016

Church of England sells assets ahead of economic slowdown

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The Church of England has sold a significant proportion of its investments, after fearing that the government will not be able to offset an oncoming economic slowdown. The Church of England’s investment fund, which has seen an average annual return of 9.7 percent over the past 30 years, will sell £250 million worth of assets. Church commissioner Sir Andreas Whittam Smith looked to the future in a report, saying: “Unfortunately, it may be harder in the future to achieve such a satisfactory performance. My message to the wider church is: don’t count on it. “The nervousness of investors is explained by the feeling that governments have lost the power to reverse any slowdown in economic activity. In earlier times they would reduce interest rates, but now that rates hover around zero, that remedy is unavailable. And it’s hard to believe that negative interest rates can provide the necessary boost, or that governments would let the supply of money expand.” However, the Church has maintained its multi-million investment in Google, despite criticism over the company’s tax avoidance. The company reached a controversial £130 million settlement with HMRC earlier this year to end a long-running dispute over back taxes.
16/05/2016

ICAP to become NEX Group; hit by 11% profit fall

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Interdealer broker ICAP has announced a change of name following the sale of its voice-broking arm, alongside disappointing financial results. The group saw full-year trading pretax profit fall 11 percent to £203 million, hit by adverse currency movement. Revenue fell 6 percent to £1.2 billion. The company is currently undergoing the sale of its voice service unit to Tullett Prebon plc, and will rebrand as NEX Group Plc once the sale completes. “NEX Group Plc will be a fast moving, entrepreneurial pure electronic and post trade leader, well positioned for growth,” CEO Michael Spencer said in a statement. “We wanted a name to truly reflect this and which was truly global.” The group’s shares remain largely unaffected by the news, trading down 0.44 percent at 454.00 (0850GMT).
16/05/2016

Morning Round-Up: Norway fund sues VW, Nissan emissions scandal, H&M hit

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Norwegian fund takes action against VW The world’s largest sovereign wealth fund has planned legal action against Volkswagen over its emissions scandal. Norges Bank Investment Management, one of VW’s largest shareholders worth $850 billion, will be filing the case in Germany after being advised they had a claim under German law. This lawsuit will be the latest for VW to deal with, after action was announced by the US Department of Justice, the Federal Trade Commission and its own dealers. “Norges Bank Investment Management intends to join a legal action against Volkswagen arising out of [the fact that] the company provided incorrect emissions data,” the company said in a statement, according to Reuters. “As an investor, it is our responsibility to safeguard the fund’s holding in Volkswagen.” Nissan accused of cheating emissions

Carmaker Nissan has been accused of manipulating emissions tests by the South Korean government, following a probe by the environment ministry.

South Korea said it found emissions-cheating devices, similar to those used by Volkswagen, fitted to the Qashqai model. Nissan now face fines of around 30 million won, although have denied the claims. H&M hit by cold weather Swedish retailer Hennes & Mauritz reported a smaller than expected increase in sales in April, hit byan unseasonably cold spring. The company saw a 5 percent increase in April sales on a year earlier, below the 9 percent expected by analysts.  
16/05/2016