Intermediate Capital Group achieves record profits in both Fund Management Company and Investment Company

Growth

Intermediate Capital Group plc (LON:ICP) has announced its final results for the financial year ended 31 March 2021.

Highlights

  • Record profits in both Fund Management Company and Investment Company and continuing investment in our platform: Group Profit before Tax of £507.7m and Earnings per Share of 162.3p
  • Fundraising particularly strong in an off-cycle year: $10.6bn raised, bringing Third Party AUM to $56.2bn (an increase of 19% compared to FY20). AUM now reported in US dollars to align with client reporting and peers
  • Upgrading fundraising guidance: $40bn in aggregate in the four years to the end of FY25 and at least $7bn every year
  • Continued growth in Third Party Fee Income: £333.7m during the year, an increase of 20% compared to FY20
  • Fund Management Company: Profit before Tax of £202.3m, an increase of 10% compared to FY20
  • Investment Company: Profit before Tax of £305.4m driven by exceptionally high Net Investment Returns
  • Well capitalised and resilient balance sheet: £846.9m total available liquidity including undrawn £550m ESG-linked RCF; NAV per share increased to 566p; net gearing of 0.63x
  • Progressive dividend policy: total dividend up 10% at 56.0p per share, 11th consecutive annual increase

Note: unless stated otherwise the financial results discussed herein are on the basis of Alternative Performance Measures – see page 2

Lord Davies of Abersoch
Chairman
Benoît Durteste
CEO and CIO
These results, delivered during a
period of unprecedented disruption, demonstrate the strength of the ICG business model. This has enabled the Board to recommend an 11th consecutive increase in the annual dividend.

Our purpose is to provide capital to help companies develop and grow. As society recovers and adjusts following the shocks of the last 18 months, the structural tailwinds of this industry remain in place. Clients are continuing to trust us to invest on their behalf, and companies are benefiting from our capital.

I am confident that ICG has the people and platform to execute on the opportunity ahead, and I am pleased that during the year the business continued to invest in its future growth.

I was delighted to appoint two new Board members this year in Rosemary Leith and Matthew Lester. They bring diverse experiences and will help ensure the continued success of ICG.
It has been a year of excellent progress for ICG. We have delivered record profits and have continued to invest in our platform.

I am incredibly grateful for the exceptional dedication of our employees and those of our portfolio companies.

Our success this year was further underpinned by long term client relationships, the strength of our brand and platform, and our investment performance. We raised $10.6bn during the year, bringing our Third Party AUM to $56bn. We grew our client footprint and expanded our product offering with new strategies such as Life Sciences.

Our balance sheet confirmed its resilience, and has demonstrated its role as an accelerator of future growth as we continued to seed new strategies.

We have a business model and financial profile that enable us to thrive in dynamic market conditions, and I am confident in our prospects.

PERFORMANCE OVERVIEW

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 7 and a reconciliation of the APM to the IFRS measures, along with the IFRS financial statements and supporting notes, can be found on pages 31 to 51.

The Group’s Profit after Tax on an IFRS basis was above the prior year at £461.0m (2020 £110.6m). On the APM basis it was also above the prior year at £462.7m (2020 £109.2m).

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.

 31 March 202131 March 2020Change
Third Party AUM activity1   
Third Party AUM$56,152m$47,245m19%
Third Party Fee Earning AUM$46,729m$39,566m18%
Third Party AUM additions during period$10,624m$11,253m(6)%
Third Party AUM realisations during period$4,593m$2,032m126%
Third Party AUM deployed during period from direct investment funds$7,221m$6,212m16%
    
Financial results   
Third Party Fee Income£333.7m£277.8.m20%
Fund Management Company Profit before Tax£202.3m£183.1m10%
Investment Company Profit before Tax£305.4m£(72.3)mn/m
Group Profit before Tax£507.7m£110.8mn/m
Group Earnings per Share162.3p38.3pn/m
Dividend per share56.0p50.8p10%
Balance sheet investment portfolio2£2,491.7m£2,196.5m13%
Net asset value per share566p461p23%
Net gearing0.63x0.74x(0.11)x

¹ Please see page 19 for Third Party AUM activity presented in Euros
2 Excluding warehoused investments of £64.6m (FY20: £12.8m)

COMPANY PRESENTATION

A presentation for investors and analysts will be held at 09:00 BST today on the Intermediate Capital Group website via the Webcast link on Results Centre FY2021 (icgam.com).

A recording of the presentation will be available on demand at Results Centre FY2021 (icgam.com) later in the day.

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