INTERMEDIATE CAPITAL GROUP PLC 15 November 2021
Interim results statement for the six months ended 30 September 2021 Highlights- Strong momentum continuing across our three strategic objectives encompassing fundraising, deployment and realisations
- Record fundraising: $13.8bn raised, Europe VIII already 42% larger than Europe VII and continuing to fundraise
- Third-party AUM: $65.3bn, an increase of 28% compared to H1 FY21
- Continued growth in third-party fee income: £199.0m during the period, an increase of 29% compared to H1 FY21
- Fund Management Company: profit before tax of £120.9m, an increase of 35% compared to H1 FY21
- Investment Company: NIR of 18% driven by strong fund performance, profit before tax of £143.8m
- Balance sheet supporting growth: seed investments made on behalf of new strategies totalling £115.7m
- Dividend policy maintained: interim dividend of 18.7p, in line with policy of paying a third of prior full year dividend
- Sustainability and people: post period-end, committed to reach net zero by 2040; 2030 emissions reduction targets covering 100% of relevant investments approved and validated by the Science Based Targets initiative
Note: unless otherwise stated the financial results discussed herein are on the basis of Alternative Performance Measures - see Performance overview, below.
Benoît Durteste, CEO and CIO:
"This has been a record period for ICG on a number of levels, continuing the strong momentum of H2 FY21 and delivering progress against all three of our strategic priorities encompassing fundraising, deployment and realisations. We anticipated the first half would be strong, and it has exceeded our expectations.
Fundraising has been remarkable: we have raised more in six months than in any full year in the history of ICG. Notably it has been across both established and emerging strategies, evidencing the breadth of our embedded growth opportunities. We have also attracted a substantial number of new clients during the period across a range of established and emerging strategies.
I am delighted that we continue to help lead our industry on sustainability, with our commitment to net zero by 2040 supported by approved and validated science-based targets for reductions in greenhouse gas emissions by 2030.
Looking ahead, activity levels across our business remain high. Our performance demonstrates our multiple drivers of compounding growth, and gives us further confidence in our medium-term guidance. As we raise successor vintages of current strategies and expand our product offering, our visible and long-term third-party fee income on a growing base of AUM is poised to increase meaningfully over the next several years."
The Board and management monitor the financial performance of the Group on the basis of alternative performance measures (APM), which are non-IFRS measures. An explanation of these measures can be found on page 6 and a reconciliation of the APM to the IFRS measures, along with the IFRS condensed consolidated financial statements and supporting notes, can be found on pages 19 to 46.
The Group's profit after tax on an IFRS basis was above the prior period at £242.4m (H1 FY21 £192.8m). On the APM basis it was also above the prior period at £240.7m (H1 FY21 £183.9m).
Unless stated otherwise the financial results discussed herein are on the basis of APM, which the Board believes assists shareholders in assessing the financial performance of the Group.
Third-party AUM activity for the period | 30 September 2021 (Unaudited) | 30 September 2020 (Unaudited) | Change | 31 March 2021 |
Third-party AUM at period end | $65,349m | $51,198m | 28 % | $56,152m |
Third-party fee-earning AUM at period end | $55,647m | $43,483m | 28 % | $46,729m |
Third-party AUM additions during period | $14,557m | $2,993m | 386 % | $10,624m |
Third-party AUM realisations during period | $4,793m | $1,130m | 324 % | $4,593m |
Third-party AUM deployed during period 1 | $8,417m | $2,411m | 249 % | $7,221m |
1From direct investment funds | ||||
Financial results | Six months ended 30 September 2021 (Unaudited) | Six months ended (Unaudited) | Change | 12 months ended (Audited) |
Third-party fee income | £199.0m | £154.2m | 29 % | £333.7m |
Fund Management Company profit before tax | £120.9m | £89.8m | 35 % | £202.3m |
Investment Company profit before tax | £143.8m | £103.0m | 40 % | £305.4m |
Group profit before tax | £264.7m | £192.8m | 37 % | £507.7m |
Group earnings per share | 83.9p | 64.6p | 30 % | 162.3p |
Dividend per share | 18.7p | 17.0p | 10 % | 56.0p |
Balance sheet investment portfolio | £2,732.0m | £2,208.3m | 24 % | £2,556.4m |
Net asset value per share | 609p | 488p | 25 % | 566p |
Net gearing | 0.63x | 0.67x | (0.04)x | 0.63x |
Last 12 months | 12 months ended (Unaudited) | 12 months ended (Unaudited) | Change | 12 months ended (Audited) |
Third-party AUM additions | $22,264m | $9,083m | ||
Third-party AUM realisations | $9,959m | $2,618m | ||
Third-party AUM deployed1 | $13,283m | $6,119m | ||
Third-party fee income | £378.5m | £296.4m | 28 % | £333.7m |
Fund Management Company profit before tax | £233.4m | £187.9m | 24 % | £202.3m |
1From direct investment funds |
A presentation for investors and analysts will be held at 09:00 GMT today on our website via the link on Results Centre FY22 (icgam.com).
A recording of the presentation will be available on demand at Results Centre FY22 (icgam.com) later in the day.
Vijay Bharadia, CFOO, ICG +44(0)20 3545 2000
Chris Hunt, Head of Shareholder Relations, ICG +44(0)20 3545 2020
Fiona Laffan, Global Head of Corporate Affairs, ICG +44(0)20 3545 1510
This results statement has been prepared solely to provide additional information to shareholders and meets the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. The results statement should not be relied on by any other party or for any other purpose.
This results statement may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.
About ICGICG provides flexible capital solutions to help companies develop and grow. We are a global alternative asset manager with over 30 years' history, managing $69bn of assets and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.
We develop long-term relationships with our business partners to deliver value for shareholders, clients and employees, and use our position of influence to benefit the environment and society. We are committed to being a net zero asset manager across our operations and relevant investments by 2040.
ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further details are available at www.icgam.com. You can follow ICG on LinkedIn.
Related content- ICG H1 FY22 results (PDF)
- ICG H1 FY22 results one page summary (PDF)
- ICG H1 FY22 presentation (PDF available after 9am)
- ICG H1 FY22 data pack (PDF)
- ICG H1 FY22 data pack (Excel)
- CEO and CIO Benoit Durteste video presentation
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ICG - Intermediate Capital Group plc published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2021 07:15:05 UTC.
