# Intermediate Capital Group’s strategy driving fund management profits up 32%

- Link: https://www.directorstalkinterviews.com/intermediate-capital-groups-strategy-driving-fund-management-profits-up-32/412798380
- Published: 2019-11-19T07:24:19+00:00
- Author: Amilia Stone

**Intermediate Capital Group** (LON:ICP) has announced its first half results for
the six months ended 30 September 2019.

**Highlights**

 * AUM up 11% on 31 March 2019 to €41.1bn, with €4.6bn of new money raised across
   14 strategies
    
 * Fund Management Company profits up 32% to £85.0m (H1 2019: £64.4m); average fee
   rates maintained
    
 * Group profit before tax on an IFRS basis up 24% to £153.4m (H1 2019: £124.0m)
   
 * Earnings per share of 50.8p (H1 2019: 43.6p); Fund Management Company 28.4p (
   H1 2019: 21.4p) and Investment Company 22.4p (H1 2019: 22.2p)
    
 * Interim ordinary dividend up 50% to 15.0p per share (H1 2019: 10.0p)
    
 * Positive outlook underpins increase in operating margin target to be in excess
   of 50%, up from 43% previously

> **Commenting on the results, Benoit Durteste, CEO, said:**
> “These strong results demonstrate our ability to attract assets to a broad range
> of new fund strategies that are adjacent to our existing portfolios. Our diversification
> has resulted in continued healthy fundraising results and the 32% growth in Fund
> Management Company profits.
> “We are well-positioned to deliver sustainable growth. Unlike traditional asset
> managers, we do not suffer short term outflows as a consequence of the movement
> in financial markets; we are maintaining or increasing average fee rates on an
> underlying fund basis. Our long fund life-cycles are designed to withstand economic
> cycles. This is underpinned by a disciplined attitude to the deployment of funds
> and proactive approach to realisations.”

> **Commenting on the results, Kevin Parry, Intermediate Capital Group Chairman,
> said:**
> “Our business model is more robust than at any time in the Company’s history and
> provides the Board with a strong backdrop against which to increase our Fund Management
> Company operating margin target to above 50%. The new target reflects the maturing
> of existing strategies while still providing capacity to invest in new fund strategies
> that will underpin the continued long-term sustainable growth of the Group.
> “Our approach to building sustainable growth, while enhancing our responsible 
> investing approach and maintaining our corporate culture, will be the subject 
> of further discussion at our capital markets update on 30 January 2020.

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