4th Jun 2020 09:19
(Alliance News) - Intermediate Capital Group PLC on Thursday reported a decline in profit in its most recently ended financial year, but lifted its payout amid "good visibility" on future management fees.
The FTSE 100-listed asset management company reported a pretax profit of GBP114.5 million for the year to the end of March, down 37% GBP182.9 million reported a year earlier. This was due to lower gains on investments, which fell to GBP117.4 million from GBP225.9 million year-on-year.
In addition, ICG said its administrative expenses grew to GBP241.4 million from GBP227.9 million a year prior.
Net asset value as at March 31 was GBP4.63 a share, down from GBP4.93 a year earlier.
More positively, ICG said assets under management were up 22% on March 31 to EUR45.3 billion, with EUR10.2 billion of new money raised.
The company upped its final ordinary dividend by 2% to 35.8p per share, taking total dividends in the year up 13% to 50.8p per share.
Looking ahead, the London-headquartered firm said, despite the challenges of Covid-19, its business remains resilient with good visibility on future management fees due to the long-term nature of its funds, underpinned by a strong and well-capitalised balance sheet, with GBP1.2 billion 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," said Chief Executive Benoit Durteste.
"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," added Durteste.
ICG shares were trading 3.2% lower in London on Thursday morning at 1,342.00p each.
By Evelina Grecenko; [email protected]
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