Hipgnosis working to increase shareholder value after investor complaints
The boss of Hipgnosis said today that the song management company is working on options to increase shareholder value after investors complained about its dwindling share price.
“I am aligned with shareholders in believing that the fundamental value and opportunity of the company fails to be reflected in the current share price,” Merck Mercuriadis, Hipgnosis boss and founder, said today.
“As a result, we have been working with the board, following consultation with many of our largest shareholders, on a number of options to enhance shareholder value,” he added.
The comments came in response to complaints from investors yesterday, who urged the company to sell some of its music catalogues due to concerns about a persistently low share price.
Chair Andrew Sutch said today that Hipgnosis has “always believed… that the best way to maximise shareholder value has been to buy and hold great assets.”
He added: “We continue to be confident that your company will provide superior returns over the medium term and we encourage all shareholders to support the continuation of the company.”
The remarks were made as the company delivered its annual results today.
Royalty revenues earned by the Hipgnosis’ catalogues increased to $130m (£100m), up 12 per cent on the previous year.
The company also saw a 14.8 per cent rise in streaming income and a 9 per cent increase in performance revenues.
Net revenue, however, was down, falling to $147m (£113m), dropping from $168m (£129m) in 2022.
Shares were up slightly this morning by nearly 0.3 per cent.