News

First half results for the six months ended 30 September 2020

17 November 2020
Abstract linear moving up diagram made out of glowing neon lights.
Fund Management Company profits up 6%; Interim dividend up 13%. Growth-orientated and resilient business model drives strong performance

Intermediate Capital Group plc (ICG or the Group) announces its first half results for the six months ended 30 September 2020.

Highlights

  • Strong, off-cycle fundraising, despite the pandemic, with €2.6bn of new money raised in the period resulting in AUM of €46.1bn (+2% on 31 March 2020). Fundraising of €6bn expected for the full year
  • Exceptional period of investment activity, particularly for our Strategic Equity and European Corporate funds, with a total of €2.1bn deployed and a further €4.0bn signed or in exclusivity
  • Strong investment performance particularly in our European and Asian Corporate funds
  • Fund Management Company profit before tax up 6% to £89.8m (H1 2020: £85.0m), representing an operating profit margin of 51.1% (H1 2020: 51.7%)
  • Investment Company profit before tax of £108.0m (H1 2020: £68.4m) reflecting recovery in portfolio valuations and favourable realisations
  • Group profit before tax on an IFRS basis up 29% to £197.8m (H1 2020: £153.4m); earnings per share up 32% to 66.9p (H1 2020: 50.8p)
  • Robust financial position: strong balance sheet, with £1bn of available liquidity and net gearing of 0.67x (31 March 2020: 0.76x)
  • Interim ordinary dividend up 13% to 17.0p per share (H1 2020: 15.0p), in line with our policy of paying a third of the prior full year dividend

Outlook:

  • Fundraising timetable accelerated: Strategic Equity Fund IV launched, and Europe Fund VIII expected to launch in the next twelve months
  • Confident in maintaining our growth momentum given our performance track record and resilient business model, which additionally benefits from structural tailwinds for alternative asset management

Commenting on the results, Benoît Durteste, CEO, said:

The sustained growth of our Fund Management Company profits demonstrates the strength of our business model in these challenging times, as we continue to see investor demand for a broad range of our funds, including a number of new strategies. Our long-life funds are designed to withstand economic cycles; our portfolios are performing well, and that is flowing through to profits. While remaining disciplined, we have experienced a period of exceptional investment activity since June. The pace of deployment in our flagship funds is such that we have already launched Strategic Equity IV and expect Europe Fund VIII to be in the market in the next twelve months. This is much sooner than planned for both strategies which are expected to be larger than their predecessors. This will accelerate the growth of our Fund Management Company. I would like to thank all our employees for their continued dedication and hard work during the pandemic.

Commenting on the results, Lord Davies of Abersoch, Chairman, said:

ICG has an outstanding team who continue to build one of the world’s leading diversified alternative asset management platforms, underpinned by a strong, well-capitalised balance sheet. Our performance during the pandemic demonstrates the resilience of our business model, which is supported by strong long-term industry dynamics, enabling us to maintain our commitment to value generation and shareholder returns through both earnings growth and an attractive ordinary dividend. We expect to emerge from this crisis stronger than before.

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