TOP NEWS: ICG fund management and investment units hit record profit

(Alliance News) - Intermediate Capital Group PLC on Tuesday reported a surge in annual profit, as ...

Alliance News 8 June, 2021 | 8:46AM
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(Alliance News) - Intermediate Capital Group PLC on Tuesday reported a surge in annual profit, as its two units posted record performances, allowing it to up its shareholder payout by 10%.

Shares in Intermediate Capital Group were 6.8% higher in London on Tuesday morning at 2,302.00 pence each, the best performing FTSE 100 stock.

At the end of March, the asset manager held USD56.15 billion in third party assets under management, up 19% from USD47.25 billion at the same point the year before. Fee earning assets grew 18% year on year to GBP46.73 billion from GBP39.57 billion.

ICG's net asset value per share ended March at 566 pence versus 461p at the same point the year before.

Pretax profit multiplied to GBP507.7 million from GBP110.8 million, with its Fund Management Co's pretax profit up by 10% to GBP202.3 million, while the Investment Co swung to a pretax profit of GBP305.4 million from a GBP72.3 million loss the year before.

ICG noted it delivered record profits from its Fund Management and Investment units.

Third-party fee income increased 20% to GBP333.7 million from GBP277.8 million.

Chair Mervyn Davies said: "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."

ICG raised its annual dividend by 10% to 56.0 pence from 50.8p.

"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," Davies added.

Third party asset additions during the year to March 31 of USD10.62 billion, while realisation were USD4.59 billion.

Chief Executive Benoit Durteste said: "It has been a year of excellent progress for ICG. We have delivered record profits and have continued to invest in our platform.

"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 USD10.6 billion during the year, bringing our third party AuM to USD56 billion. We grew our client footprint and expanded our product offering with new strategies such as Life Sciences."

Looking ahead, ICG is guiding for USD40 billion in fundraising in the four years to the end of financial 2025, with USD7 billion every year.

"Our balance sheet confirmed its resilience, and has demonstrated its role as an accelerator of future growth as we continued to seed new strategies," Durteste continued. "We have a business model and financial profile that enable us to thrive in dynamic market conditions, and I am confident in our prospects."

By Paul McGowan;

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Intermediate Capital Group PLC 2,170.00 GBX -3.68 -

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