13th Nov 2024 10:12
(Alliance News) - Intermediate Capital Group PLC on Wednesday said profit fell nearly 20% in the first six months of its current financial year despite net asset value growing, as revenue plummeted within its Investment Co division.
The London-based asset manager said pretax profit for the six months that ended September 30 was GBP198.4 million, falling 18% from GBP241.9 million last year.
This was primarily due to pretax profit for Investment Co dropping 97% to GBP2.0 million from GBP79.2 million the year before, as revenue plummeted 65% to GBP50.2 million from GBP141.8 million.
Intermediate Capital's Investment Co "invests in the group's balance sheet to seed new strategies", and makes investments to align the interests of shareholders, clients and employees.
Total group revenue fell 12% to GBP405.3 million from GBP463.1 million, while group operating expenses increased 7.5% to GBP196.6 million from GBP181.9 million.
Net asset value per share on September 30, however, was up 11% at 788 pence from 704p, while assets under management on September 30 were USD106.3 billion, 31% higher than USD81.4 billion on September 30, 2023.
Intermediate Capital declared an interim dividend of 26.3p, up 1.9% from 25.8p last year.
Chief Executive Officer Benoit Durteste said: "During the last six months, we have reinforced our leading positions in flagship strategies and have significantly progressed a number of scaling strategies. We are reporting near-record levels of fundraising, increasing transaction activity, higher client numbers, and growth across almost all key financial metrics.
"While uncertainty persists in many areas, we are seeing that top-tier managers such as Intermediate Capital Group can generate attractive returns and raise significant amounts of client capital. This is accelerating the development of a relatively small group of globally relevant, scaled private market managers, and gives us confidence as we look to our next USD100 billion and beyond."
Intermediate Capital provided medium-term guidance of a Fund Management Co operating margin in excess of 52%, performance fees representing between around 10% to 15% of total fee income, and low double-digit percentage returns on its balance sheet investment portfolio.
Shares in Intermediate Capital were down 4.9% at 2,130.00 pence each in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
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