Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

Tuesday, January 21, 2025

Latest Posts:

HYPERVSN’s Digital Avatar set to take centre stage at NRF 2025

HYPERVSN, a global leader in 3D holographic technology, is set to unveil...

MarginEdge Selects BlueSnap as North American Subscription Payments Partner

BlueSnap, a global payment orchestration platform for leading B2B and B2C...

Double Triumph: Sectigo Celebrates Top Honors in Product and Workplace Excellence

Sectigo, a global leader in digital certificates and automated Certificate Lifecycle Management (CLM)...

Companies are raising capital, should investors support?

Numerous companies are raising capital even at depressed share price levels. Should investors follow their money and support these issues?  

That proved right for most fundraising in the aftermath of the financial crisis, but this time could it be different? Margaret Lawson, UK Investment Director, SVM Asset Management shares her views: 

  • Where consumer businesses have an online strategy, or can use additional capital to acquire or take market share from weaker rivals, new money might genuinely improve prospects 
  • The prospect of changes in consumer behaviour, unemployment, wealth taxes and government intervention in key sectors, brings guesswork into the calculation 

“While the financial crisis was largely a credit problem, some businesses are now faced with uncertainty over demand and the timescale in which that might correct. For consumer services and hospitality – pub chains for example – prospects this year and next are very uncertain. But where consumer businesses also have an online strategy or can use additional capital to acquire or take market share from weaker rivals, new money might genuinely improve prospects. And the purely business serving B2B services may be best placed of all. April and May have seen very few of these types of businesses call on shareholders. Only some of the consumer offerings make sense just now. 

“Hardest to forecast are sectors such as international travel, but investors should not ignore the challenges in other areas. The prospect of changes in consumer behaviour, unemployment, wealth taxes and government intervention in key sectors, brings guesswork into the calculation. All the rigour of investment modelling cannot ignore that much of the global market background will be uncertain for some time. 

“Investors seem more focused on growth, preferring companies more focused on niches and with better control over their own destiny. In contrast, many large FTSE 100 businesses have been forced into dividend cuts, with income having been a key reason for holding the shares previously. Despite money printing, the background is disinflationary – typically more of a challenge for global economically-sensitive businesses. And global supply chains must change – moving from a lean but risky model towards structures that are more resilient. 

“There are opportunities for investors to follow their money in some of the businesses currently fundraising. But a selective approach is important. Many techs and B2B businesses have seen strong demand during the current crisis and IT budgets are expected to grow to strengthen cloud and digital services.” 

 

For more information visit: www.svmonline.co.uk 

For more Investment news follow i-invest Online. 

Latest

HYPERVSN’s Digital Avatar set to take centre stage at NRF 2025

HYPERVSN, a global leader in 3D holographic technology, is set to unveil...

MarginEdge Selects BlueSnap as North American Subscription Payments Partner

BlueSnap, a global payment orchestration platform for leading B2B and B2C...

Double Triumph: Sectigo Celebrates Top Honors in Product and Workplace Excellence

Sectigo, a global leader in digital certificates and automated Certificate Lifecycle Management (CLM)...

Axians UK’s Experience Hub to drive future growth after standout year

Axians UK, a prominent technology services partner, today announced the opening of its...

Subscribe To Our Content

Don't miss

HYPERVSN’s Digital Avatar set to take centre stage at NRF 2025

HYPERVSN, a global leader in 3D holographic technology, is set to unveil...

MarginEdge Selects BlueSnap as North American Subscription Payments Partner

BlueSnap, a global payment orchestration platform for leading B2B and B2C...

Double Triumph: Sectigo Celebrates Top Honors in Product and Workplace Excellence

Sectigo, a global leader in digital certificates and automated Certificate Lifecycle Management (CLM)...

Axians UK’s Experience Hub to drive future growth after standout year

Axians UK, a prominent technology services partner, today announced the opening of its...

How Insurance Companies Can Support Customers Throughout Their Lives

The shift from a reactive model to a proactive, prevention-focused approach is...

HYPERVSN’s Digital Avatar set to take centre stage at NRF 2025

HYPERVSN, a global leader in 3D holographic technology, is set to unveil...

MarginEdge Selects BlueSnap as North American Subscription Payments Partner

BlueSnap, a global payment orchestration platform for leading B2B and B2C...

Double Triumph: Sectigo Celebrates Top Honors in Product and Workplace Excellence

Sectigo, a global leader in digital certificates and automated Certificate Lifecycle Management (CLM)...

LEAVE A REPLY

Please enter your comment!
Please enter your name here