8 July 2021
PayPoint announces £6.6m investment in the Snappy Group
PayPoint has today announced a £6.6m investment in the Snappy Group home delivery business. The deal will see PayPoint acquire a stake in the Dundee-based firm with PayPoint Group’s CEO, Nick Wiles, taking a seat on the Snappy Group board.
The investment follows the announcement last month of a partnership between the two brands, in which PayPoint One EPOS customers will be given access to the Snappy Shopper platform, and with it the ability to offer home delivery and click-and-collect options to local shoppers.
Consumer demand for local home delivery has exploded over the past 18 months with the Covid-19 pandemic accelerating growth and businesses across the UK needing tech-driven, cost-effective digital solutions to service their local communities. The appetite for shopping local is showing no signs of slowing, with PayPoint research conducted earlier in the year confirming that two in three people said their local convenience store has become more important to them over the past 12 months and over a quarter will continue to do more local shopping as restrictions ease.
This commercial agreement, signed this week, is a firm commitment from PayPoint to offer more added value services and growth opportunities to its convenience retail partners and to help them expand the reach of their stores to more customers in their local communities.
Nick Wiles, Chief Executive of PayPoint, said: “We’re delighted to be investing into the Snappy Group business, building on the partnership that we announced recently to integrate their home delivery and click and collect technology with our own. This investment will enable PayPoint and our network of convenience retailer partners to remain at the forefront of retail and consumer trends.”
Mike Callachan, Co-founder of the Snappy Group, added: “Demand for the fundraise exceeded our expectations and we are pleased to have attracted such high-profile investors. Post lockdown the demand for home delivery and the desire to shop locally is greater than ever, but the increasing number of anonymous dark stores is a threat to local businesses and communities, which must not be underestimated. We are well placed to empower local business to offer another great service to their customers, and better compete in this fast-changing retail market.”
PayPoint plc Finsbury
Nick Wiles, Chief Executive (Mobile: 07768636801) Rollo Head
Alan Dale, Finance Director (Mobile: 07778043962) Nidaa Lone
(Telephone: 0207 251 3801)
For tens of thousands of businesses and their customers, we make life and payments more convenient.
For retailers, we offer innovative and time-saving technology that empowers them to achieve higher footfall and increased spend so they can grow their businesses profitably. Our innovative retail services platform, PayPoint One, is now live in over 17,800 shops in the UK and offers everything a modern convenience store needs. More broadly, we also provide card payments services to thousands of growing businesses across the convenience retail, hospitality, auto trade, clothing and households goods sectors. Our technology helps companies to serve customers quickly, improve business efficiency and modernise their operations.
For clients of all sizes, we also provide market-leading payments technologies without the need for capital investment. Our seamlessly integrated omnichannel solution – MultiPay – is a one-stop shop for digital and other customer payments, via any channel and on any device.
Together, these solutions help millions of consumers to control their household finances, make essential payments and access services like cash withdrawals, eMoney and parcel collections and drop-offs. Our UK network of more than 28,000 stores is bigger than all banks, supermarkets and Post Offices together, putting us at the heart of communities nationwide.
About the Snappy Group
The Snappy Group is formed of two businesses, Snappy Shopper Ltd and Hungrrr Ltd, operating in the growing UK convenience grocery sector and the hospitality sector respectively.
Launched in Dundee in December 2017, Snappy Shopper is a technology solution provider that connects communities with their local businesses. Via its app and website consumers can order groceries from their local convenience store and have them delivered by the store’s own drivers to their homes in as little as 30 minutes. No longer solely reliant on footfall, this allows retailers to extend their customer base and service, as well as compete in this fast-growing home delivery market. This not only caters to the trend for top up shopping but also an increasing desire by consumers to access and support local businesses. Retailers can increase revenues significantly with average basket spend more than trebling online, while maintaining their in-store pricing. The Company currently serves retailers from most major players and has partnership agreements with several regional Co-op’s, Nisa and SPAR.
Hungrrr, launched in 2016, offers the hospitality sector, including restaurants, hotels and stadia, affordable solutions to take online orders, whether that is ordering drinks to a table in a pub, breakfast to a hotel room or pre-ordering food at a major sporting event. The platform’s white label functionality and branding can be tailored to each client which has proven attractive to businesses such as Hilton, BrewDog and Subway.
The Group has 1540 business partners today with more than 1 million users across England, Scotland, Wales and Northern Ireland. Annualised Gross Merchandise Volume (GMV) is £132m.
A classic investing read for summer (psst … it’s free) – The Globe and Mail
Is there a good book you recommend for retail investors? I have read several that explain how markets and trading work, but I have found very few that discuss the strategies one should use to invest profitably. One of the hardest decisions I have is when to sell, since if I don’t have extra cash the only way to buy another stock is to sell something first.
As I discussed in a recent column, I’m not a fan of trying to create wealth by trading. Instead, I believe in building a diversified portfolio of solid companies, or exchange-traded funds, and holding them for the long run. Focusing on stocks that raise their dividends regularly has worked well for me, as a growing payout is usually a sign of a healthy company and provides a powerful incentive to stay invested instead of constantly trading in and out.
When I was starting out, one of the most influential books I read was Lowell Miller’s The Single Best Investment: Creating Wealth with Dividend Growth. It is an engaging and accessible read that will not only give you the tools to identify great dividend stocks, but will help you deal with the 24/7 onslaught of market noise that often leads small investors astray.
I’m not exaggerating when I say the book might very well change how you think about investing.
As Mr. Miller, the founder and now-retired chief investment officer of Miller/Howard Investments, writes in the book’s introduction:
“Investing isnʼt some athletic event where agility and flashes of virtuosity are the secrets of success. Rather, investing really is investing – the methodical accumulation of capital through a sensible and disciplined plan which recognizes that ‘shares’ are not little numbers that jump around in the paper every day.
“They represent a partnership interest in a real and going business. Your plan, very simply, must recognize that you will manage your investments by actually being an investor – a passive partner in a real and going business.”
Even though it’s a U.S. book and the latest edition was published in 2006, the principles are still relevant to Canadian investors. Here’s the best part: The book is now available as a free PDF download from Miller/Howard’s website at: bit.ly/SingleBestInvest.
Prefer a hard copy? Check online or at your local library.
In The Single Best Investment, Lowell Miller writes that a company’s bonds should have a Standard & Poor’s credit rating of BBB+ or better – considered “investment grade” – to qualify as a suitable stock. Is the bond rating something you consider when buying a stock for your model portfolio? Is there an easy way to check this for individual companies in Canada? I have tried scrolling through lists of bonds in my brokerage account but I can’t seem to find bond ratings for individual companies.
Yes, I consider the credit rating when buying stocks personally and in my model Yield Hog Dividend Growth Portfolio (tgam.ca/dividendportfolio). A lousy credit rating indicates that a company could have trouble meeting its obligations, and in such cases the dividend is often the first casualty. For that reason, I usually stay away from companies whose bonds are rated as “speculative,” or below investment grade.
Mr. Miller’s minimum credit rating is slightly more stringent than the common definition of investment grade, which includes anything rated BBB- or higher by Standard & Poor’s. According to S&P, companies in the BBB family generally have “adequate capacity to meet financial commitments, but [are] more subject to adverse economic conditions” than those rated A, AA or AAA. (Fitch and DBRS use a similar letter rating system as S&P, while Moody’s defines investment grade as anything rated Baa3 or higher on its scale.)
(One exception to the investment grade rule in my model portfolio is Restaurant Brands International Inc., whose debt is rated BB by S&P. However, the agency recently upgraded the owner of Tim Hortons, Burger King and Popeyes to “stable” from “negative,” saying it expects a continued rebound in sales and profitability as the pandemic recedes and the company opens more franchised restaurants. So I’m comfortable giving Restaurant Brands some slack on its credit rating.)
There are several ways to find a company’s credit ratings. One is to check the investor relations section of its website. A Google search of “BCE credit rating,” for example, brought up a company web page with all of BCE Inc.’s bond, commercial paper and preferred share credit ratings from S&P, Moody’s and DBRS. BCE and other companies typically provide additional credit rating information and analysis in their annual reports.
Another option is to go directly to the credit rating agencies themselves. For example, the DBRS website – dbrsmorningstar.com – lets you search for a company and read detailed reports about its recent credit rating changes or confirmations. This will give you an even deeper understanding of the company’s financial position and outlook. S&P and Moody’s also make credit reports available, but you’ll need to register to get access.
E-mail your questions to email@example.com. I’m not able to respond personally to e-mails but I choose certain questions to answer in my column.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Condo Smarts: Existing condominium buildings can be good investment – Times Colonist
Dear Tony: We are retiring this year and considering downsizing to a condo. We have started looking at both new and existing properties around Vancouver and Victoria, but we encounter challenges with both options.
New developments are often available only through presales and the time periods for completion would require us to sell, rent until the property is ready, and with few assurances of completion dates would require us to move twice with no guarantees how the properties would be managed or how fees would be structured for long term operations.
Existing buildings are more attractive; however, we find most properties are sold within days of listing, and there appears to be more of a concern by realtors to keep strata fees low rather than looking at the age of the buildings and the long-term maintenance to protect owner investments.
Are there any standards or consumer rules we might consider following? As new buyers into a condo lifestyle we would like to avoid a sinking investment.
Karyn and Jerry W.
There are many existing buildings and communities that are an excellent investment. They are easily identified by reviewing the financial reports, investments, a depreciation report completed by a qualified consultant or reserve planner, and by reviewing the minutes of the strata corporation to identify how they address maintenance, planning and funding for the future.
While every building has different amenities, staffing and servicing requirements, an annual budget that identifies all the service contracts for maintenance and operations is a significant asset. An active use of the depreciation report to plan for future renewals and major maintenance components is a healthy indication of a well managed property.
Low strata fees are problematic for strata corporations as they often indicate a community dependent on special levies. Special levies require a 3/4 vote of owners at general meetings and many owners vote against a special levies generally due to affordability issues. The result of failed special levies is deferred repairs that will only rise in cost and damages, and the potential for court actions or CRT orders.
There is also a direct link between low strata fees, deferred maintenance and renewals, and higher risks for insurers. This results in higher insurance rates and deductibles for strata corporations.
Buyers should always request copies of depreciation reports, any engineering and environmental reports, minutes of annual meetings, the bylaws and rules of the property, copy of the strata insurance policy, and a Form B Information Certificate, which will also identify any courts actions or decisions against the strata corporation. Read all documents and discuss any issues with your realtor and lawyer. This should help separate the well managed buildings vs the buildings at risk.
New construction in some ways is easier to manage as the strata corporation is enabled to make the right decisions that will impact funding and future operations. Owners can have a direct effect on their investments by joining and supporting the newly formed strata council and making decisions that ensure a well funded and planned operations plan.
Strata fees for new properties often start low in the first year as there are service contracts included with the new construction that are included in the warranty period and some developers will entice buyers with low costs. Plan on an increase of fees once all units are occupied and the strata corporation is fully serviced for operations and maintenance.
This may be impacted by insurance costs, staffing, and consulting for warranty inspections, legal services and the management of warranty claims, the commissioning of a deprecation report, and operational requirements.
Every building, which consists of endless components, will have failures. The effective management and planning of those issues when they arise is the true test of a well managed property. Product failures and installations are often beyond anyone’s control; however, a well funded property will also be able to respond without a significant crisis for owners.
Tony Gioventu is executive director of the Condominium Home Owners Association.
Goldman and DWS prepare bids for NN Investment Partners – Financial Times
Goldman Sachs Asset Management and Germany’s DWS are preparing bids for NN Group’s investment management arm as consolidation in the industry gathers pace.
The Dutch insurer said in April it was considering a sale of NN Investment Partners, which has €300bn in assets under management.
The deadline for final binding offers is Monday. GSAM, which has more than $2tn in assets under supervision, and Frankfurt-based DWS are still in the sale process and preparing bids, said people familiar with the situation.
The deal price is in the region of €1.4bn, one of the people said. NN Group, GSAM and DWS declined to comment.
UBS Asset Management, Janus Henderson and US insurer Prudential Financial are among those to have previously registered their interest. All three declined to comment.
Investment managers globally are embarking on mergers and acquisitions designed to shield profits from rising costs and falling fees, while seeking to tap into fast-growing markets such as passive investing, private assets and ESG, and open up new distribution channels.
“The competitive environment for traditional active asset managers has intensified and a smaller group of larger players are now dominating the institutional segment,” said Vincent Bounie, senior managing director at Fenchurch Advisory, a specialist investment bank for financial services.
“It has become complicated to grow and very difficult to have a profitable business, in particular if you have undifferentiated plain vanilla products.”
Asoka Woehrmann, chief executive of DWS, which is majority owned by Deutsche Bank, told shareholders at the €820bn group’s annual meeting last month that it wanted to be “an active player” in industry consolidation. It is seeking further scale to challenge rival Amundi for supremacy in Europe.
Meanwhile for insurance companies, a prolonged period of low interest rates and higher capital requirements under Solvency II rules is prompting groups to weigh up where they allocate their capital, Bounie said. “For many of them, subscale asset management divisions are no longer core activities and there will probably be more divestments.”
NN Group, which is based in The Hague, came under pressure last year from activist hedge fund Elliott Management to improve returns and streamline its operations. It said in April it was considering options including a merger, joint venture or a partial divestment of the division.
NN Investment Partners has about 950 employees. Of its €300bn in assets under management, two-thirds is managed on behalf of its insurance parent company with the remaining third run for external investors.
The division’s range of funds covers fixed income, equity, multi-asset and alternative investment strategies. It has a strong position in ESG investing, notably in areas such as green bonds, impact equity and sustainable equity.
Additional reporting by Ian Smith in London
Ontario reports 170 new COVID-19 cases, over 8.4 million fully vaccinated – CTV Toronto
Canada earns first medal in Tokyo with silver in women’s 4×100 freestyle swimming – Sportsnet.ca
People Recovered From Covid-19 Still Need Vaccine – TheHealthMania
Silver investment demand jumped 12% in 2019
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Iran anticipates renewed protests amid social media shutdown
Media18 hours ago
Social-Media Manager, the Most Millennial Job, Comes of Age – The Wall Street Journal
Media14 hours ago
Watch Live: Oliver Ekman-Larsson addresses media after trade to Canucks – Sportsnet.ca
Economy11 hours ago
Virus resurgence menaces economy just as rescue programs unravel – POLITICO
Sports13 hours ago
2021 NHL Draft Tracker: Round 1 picks, notes; Results for Rounds 2-7 – NHL
News21 hours ago
India flights to Canada: When will they be allowed? – Canada Immigration News
Sports23 hours ago
Canadian medal hopefuls Humana-Paredes, Pavan start beach volleyball with easy win – CBC.ca
Tech19 hours ago
EA Play Live featured Dead Space, Battlefield, and Grid news | bit-tech.net – bit-tech.net
Sports17 hours ago
2021 NHL Draft day one recap: Trades! Trades! Trades! and more Trades! – Pension Plan Puppets