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Intermediate Capital Group Fund management profits up 27% with €10.2bn of new money raised

Intermediate Capital Group PLC (LON:ICP) has today announced its final results for the financial year ended 31 March 2020.

Highlights

  • AUM up 22% on 31 March 2019 to €45.3bn, with €10.2bn of new money raised
     
  • Fund Management Company profits up 27% to £183.1m (2019: £143.8m); average fee rates maintained
     
  • Investment Company loss of £68.6m (2019: £39.1m profit) reflecting lower valuations of unrealised assets in the final quarter as a result of Covid-19, leading to Group profit before tax on an IFRS basis down 37% to £114.5m (2019: £182.9m) 
     
  • Earnings per share of 38.2p (2019: 63.4p); Fund Management Company 63.4p (2019: 49.0p) and Investment Company a loss of 25.2p (2019: 14.4p profit)
     
  • Final ordinary dividend up 2% to 35.8p per share; total ordinary dividends in the year up 13% to 50.8p per share
     
  • Business remains fully operational with colleagues adapting rapidly to new ways of working and interacting closely with portfolio companies, investments and clients
     
  • Outlook: despite the challenges of Covid-19, our business remains resilient with good visibility on future management fees due to the long-term nature of our funds, underpinned by a strong and well-capitalised balance sheet, with £1.2bn of available liquidity

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

“This has been another strong year for ICG, and with our strategic focus on the growth and performance of our fund management business, we raised €10.2bn during the year. Despite the impact of the Covid-19 pandemic on the latter part of our fiscal year, we continue to drive long-term value creation for our shareholders. We are in a resilient position with long-term contracted fee streams, a strong balance sheet and £1.2bn of available liquidity.

We expect lower fundraising and investment activity in the short term, but our market fundamentals remain strong, our exposure to the most affected sectors is limited, and we are working closely with all our investments and portfolio companies to help them adapt to this new environment. We believe that the long-term drivers of increased allocations to the alternative asset class will continue and the current conditions will present investment opportunities for private capital to help bolster economies.  

Given our strengthened business model, €11.4bn of investment capacity and disciplined investment capabilities, we are well placed to benefit from these opportunities and continue to create value for our shareholders and clients.”  

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

“In these unprecedented times, Intermediate Capital Group has an essential role to play in supporting business success, thereby generating financial returns for its fund investors and its shareholders. ICG is in an excellent position, with a resilient business model underpinned by a strong, well-capitalised balance sheet. We are therefore well placed to weather the current economic storm and to emerge in a stronger position than before. It is this backdrop that enabled the Board to recommend a 2% increase in the final ordinary dividend to 35.8p.”

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