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Intermediate Capital Group plc Driving fund management profits up 51%

Intermediate Capital Group plc (LON:ICG) announced its final results for the year ended 31 March 2019.

Highlights

AUM up 29% on 31 March 2018 to €37.1bn, with €10.0bn of new money raised

Third party fee earning AUM up 41% in the year to €29.6bn, resulting in third party fee income up 32%

Fund Management Company profits up 51% to £143.8m (2018: £95.3m); average fee rates maintained, with individual fund fee rates maintained or increasing

Adjusted Group profit before tax¹ increased 65% to £278.3m (2018: £168.3m); Group profit before tax of £182.9m (2018: £199.1m) which includes the IFRS impact of the consolidated CLOs

Earnings per share of 63.4p (2018: 88.8p); Fund Management Company 49.0p (2018: 44.9p) and Investment Company 14.4p (2018: 43.9p)

Final ordinary dividend up 67% to 35.0p per share; total ordinary dividends in the year up 50% to 45.0p per share, covered 2.1 times on adjusted profit

Disciplined deployment across strategies, up 23% to €6.0bn on the prior year, with all funds on course to meet or exceed performance hurdle rates

Outlook remains strong, with good visibility on future fundraising underpinned by a strong and diversified franchise supported by a growing institutional client base


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

“This has been an excellent year for ICG. Our disciplined investment processes and consistent investment performance have generated strong demand across a broad range of our investment strategies. Our local teams continue to originate attractive investment opportunities, while locking in returns by realising existing assets where appropriate.

While our most successful strategies continue to attract higher asset flows, we are putting in place the foundations for future growth, incubating new strategies and building out our pool of talent, and remaining alert for the opportunities any market dislocation may present.”

Commenting on the results, Kevin Parry, Chairman, said:

“These impressive results once again demonstrate the robustness of our business model. We are now an established and leading global alternative asset manager. Over our 30 year history we have built high levels of trust with our longstanding clients. The consistent delivery of strong investment returns for our clients results in them awarding us more mandates giving us visibility on likely fundraising success at stable fee margins. Sustainable growth and future prospects enabled the Board to recommend a 50% increase in the full year dividend.”

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