Hipgnosis Songs Share Price Was Rangebound After Its H1 Results

The Hipgnosis Songs Fund Ltd (LON: SONG) share price traded sideways after its interim financial results were released for the six months ended 30 September 2023. The Hipgnosis Songs Fund Limited offers investors exposure to songs and related intellectual property rights, along with its Investment Adviser, Hipgnosis Song Management Limited. 

Today’s earnings report indicated that the Operating Net Asset Value (NAV) per share dropped 9.2% to $1.7392 compared to 1.9153 on 31 March 2023, mainly due to a decrease in the Portfolio’s Fair Value.

As of 30 September 2023, the Operating NAV per share in Sterling was 142.49p (£:$ exchange rate of 1.22055). As of 19 December 2023, the Operating NAV per share in Sterling was 136.53p per Share (£:$ exchange rate 1.274).

Gross revenue for ongoing operations was $63.2 million versus $86.4 million in the first half of the 2022/23 financial year. Net revenue from ongoing operations decreased to $54.0 million (H1 2022-3: $76.8 million), mainly due to a $11.9 million reversal of CRB III accrual linked to lower expected future retroactive payments.

Excluding CRB III accruals, underlying net revenue rose 14.0% to $65.8 million (H1 2022-23: $57.6 million). Pro-forma Annual Revenue (PFAR), reflecting gross royalty statements within the reporting period without any IFRS revenue accruals, increased 10.4% to $64.9 million (Six months to 30 Sept 2022: $58.8 million).

A total of 2.6250p per ordinary share in dividends was distributed. The dividend for October 2023 was retracted, and dividend distribution was suspended for the remaining financial year—a Strategic Review initiated by the Board following the Continuation Resolution rejection at the AGM. Shot Tower Capital, LLC was appointed the lead adviser for asset due diligence.

Robert Naylor, Chairman of Hipgnosis Songs Fund, said: “I am delighted to be appointed to the Board, with strong backing from shareholders. The Board are clear we are acting in their best interests. I am pleased with the progress made on the ongoing strategic review. The Board, through its advisers, has begun due diligence on the Company's assets with Shot Tower LLC, a specialist music rights practice, acting as lead adviser. This process will help the new Board bring forward proposals for delivering value to shareholders.”

Hipgnosis Songs Fund share price. 

The Hipnosis Songs Fund share price traded sideways on interim full-year results.