Stifel poses key questions around Hipgnosis' future capital growth prospects

The broker also queried whether the six-month lag between when revenue is booked and when cash is actually received could lead to collection estimates to be inaccurate. Hipgnosis has been able to raise cash at a fast pace since its July 2018 IPO, growing from £200m to over £1bn today, with share price gains of 27.9% eclipsed by a net asset value increase of 38.6%. Indeed, the company's NAV is up 26.9% in the past nine months on continued positive catalogue re-valuations and a reduced rate of the discount applied to its portfolio of music rights. Music royalties to play bigger part ...