11th Oct 2022 07:00
ICG Enterprise Trust Plc: Unaudited Interim Results for the six months ended 31 July 2022ICG Enterprise Trust plc11 October 2022Unaudited Interim Results for the six months ended 31 July 2022
DEFENSIVE GROWTH IN CHALLENGING MARKETS
| Highlights NAV per Share of 1,852p (31 January 2022: 1,690p)NAV per Share Total Return of 10.9% in the period (H1 FY22: 11.1%), 24.2% over the last twelve months (‘LTM’)Portfolio delivering strong performance: Portfolio Return on a Local Currency Basis of 7.4% (Sterling return 12.4%); 99.6% of Portfolio has a valuation date of 30 June 2022 or laterRealisation Proceeds of £106.8m, including £73.2m from 30 Full Exits at an average Uplift To Carrying Value of 25.2%New Investments of £143.7m, including £30.1m direct and £49.2m in Secondary Investments, focussing on investments with enhanced downside protectionNew Commitments to funds of £164.1m, including £65.9m to Secondary fundsSecond quarter dividend of 7p per share, taking total dividends for the period to 14p (H1 FY22: 12p). Reaffirmed intended FY23 dividend of at least 30p per share, an increase of 11.1% on FY22Long-term share buyback programme approved by the Board |
| Oliver GardeyHead of Private Equity Fund Investments, ICG |
| Against a macroeconomic backdrop that became increasingly challenging, we are proud of the resilience of our investments during the first half of FY23. At 31 July 2022, NAV per Share stood at 1,852p, a NAV per Share Total Return of 10.9% for the period and 24.2% on an LTM basis.Delivering defensive growth through economic cycles defines our approach at ICG Enterprise Trust: it shapes how we construct the Portfolio and evaluate potential investments, as well as how we allocate capital between reinvestments and shareholder distributions. We entered the financial year with a Portfolio aligned with this strategy and during the period it has delivered on our ambition, generating a 7.4% Portfolio Return on a Local Currency Basis. Our investment team has reacted effectively to the evolving market dynamics, allocating capital in a disciplined fashion to opportunities that we believe offer attractive risk-adjusted returns in this environment, such as secondary portfolios, while also selectively making primary commitments to third party funds.There are great opportunities to be captured by successfully navigating challenging markets. We believe that our clear investment strategy and flexible mandate, supported by the experience and network of our dedicated team, position us well to generate long-term value. |
PERFORMANCE OVERVIEW
| Annualised | |||||||||||||
| Performance to 31 July 2022 | 3 months | 6 months | 1 year | 3 years | 5 years | 10 years | |||||||
| NAV per Share Total Return | 6.1% | 10.9% | 24.2% | 18.6% | 16.9% | 14.5% | |||||||
| Share Price Total Return | 5.5% | (1.6)% | 10.0% | 12.8% | 12.2% | 14.4% | |||||||
| FTSE All-Share Index Total Return | (1.2)% | (0.1)% | 5.5% | 3.2% | 4.0% | 7.2% | |||||||
| Three months to: | Six months to: | 12 months to: | |||||||||||
| 31 Jul. 2022 | 31 Jul. 2021 | 31 Jul. 2022 | 31 Jul. 2021 | 31 Jul. 2022 | 31 Jul. 2021 | ||||||||
| Portfolio Return on a Local Currency Basis | 5.1% | 12.3% | 7.4% | 14.9% | 21.9% | 48.5% | |||||||
| NAV per Share Total Return | 6.1% | 9.3% | 10.9% | 11.1% | 24.2% | 37.5% | |||||||
| Realisation Proceeds | £58.0m | £75.3m | £106.8m | £175.3m | £265.0m | £273.5m | |||||||
| Total New Investment | £84.6m | £101.5m | £143.7m | £133.3m | £314.1m | £220.2m | |||||||
ENQUIRIES
Investors and Analysts:
Oliver Gardey, Head of Private Equity Fund Investments, ICG: +44 (0) 20 3545 2000
Colm Walsh, Managing Director, Private Equity Fund Investments, ICG
Chris Hunt, Shareholder Relations, ICG
Livia Bridgman Baker, Shareholder Relations, ICG
Media:
Clare Glynn, Corporate Communications, ICG: +44 (0) 20 3545 1395
Website:
www.icg-enterprise.co.uk
EVENTS
A presentation for investors and analysts will be held at 10:00 BST today. A link for the presentation can be found on the Results & Reports page of the Company website. A recording of the presentation will be made available on the Company website after the event.
Company timetable
Ex-dividend date: 17 November 2022
Record date: 18 November 2022
Payment of dividend: 02 December 2022
ABOUT ICG ENTERPRISE TRUST
ICG Enterprise Trust is a leading listed private equity investor focused on creating long-term growth by delivering consistently strong returns through selectively investing in profitable, cash-generative private companies, primarily in Europe and the US, while offering the added benefit to shareholders of daily liquidity.
We invest in companies directly as well as through funds managed by ICG and other leading private equity managers who focus on creating long-term value and building sustainable growth through active management and strategic change.
We have a long track record of delivering strong returns through a flexible mandate and highly selective approach that strikes the right balance between concentration and diversification, risk and reward.
NOTES
Included in this document are Alternative Performance Measures (“APM”). APM have been used if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company, and for comparing the performance of the Company to its peers and its previously reported results. The Glossary includes further details of APMs and reconciliations to International Financial Reporting Standards (“IFRS”) measures, where appropriate.
In the Chair’s Foreword, Manager’s Review and Supplementary Information, all performance figures are stated on a Total Return basis (i.e., including the effect of re-invested dividends). ICG Alternative Investment Limited, a regulated subsidiary of Intermediate Capital Group plc, acts as the Manager of the Company.
DISCLAIMER
This report may contain forward looking statements. These statements have been made by the directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption therefrom. The issuer has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.
CHAIR’S FOREWORD
Our aim is to deliver attractive compounding returns across the cycle by identifying companies that have defensive growth characteristics. Our performance for the first six months of this financial year has delivered on that intention.
I am pleased to report that your Company’s NAV per Share Total Return during the period was 10.9% and at 31 July 2022 NAV stood at 1,852p per share. The Portfolio1 has performed strongly, recording a Portfolio Return on a Local Currency Basis of 7.4% for the six months to 31 July 2022.
Despite the strong Portfolio performance and NAV per Share Total Return, an ICG Enterprise Trust share generated a total share price return of (1.6)% during the period. As part of its ongoing focus on optimising the return that the Company delivers for its shareholders, the Board has resolved to commence a long-term programme of share buybacks. This programme will sit alongside the Company’s existing progressive dividend policy as a route to deliver returns to our shareholders. The Board believes the buyback programme demonstrates the Manager’s discipline around capital allocation; underlines the Board’s confidence in the long-term prospects of the Company, its cashflows and NAV; will enhance the NAV per share; and over time may reduce the volatility of the Company’s discount and increase its trading liquidity.
Your Board remains confident that ICG Enterprise Trust is well positioned to provide shareholders with access to the attractive long-term returns generated by investing in private companies, with the added benefit of daily liquidity. Our investment strategy is clear, our financial position is robust, and the underlying companies in which our Portfolio is invested are well-equipped to withstand the economic uncertainties we currently face. As evidenced by our buyback programme announced today, and our enhanced disclosure on the financial and operational performance of the top 30 companies within our Portfolio, we are committed to helping the market share our confidence in the long-term prospects of ICG Enterprise Trust.
Jane Tufnell
Chair
10 October 2022
MANAGER’S REVIEW
Alternative Performance Measures
The Board and the Manager monitor the financial performance of the Company on the basis of Alternative Performance Measures (APM), which are non-IFRS measures. The APM predominantly form the basis of the financial measures discussed in this review, which the Board believes assists shareholders in assessing their investment and the delivery of the investment strategy.
The Company holds certain investments in subsidiary entities. The substantive difference between APM and IFRS is the treatment of the assets and liabilities of these subsidiaries. The APM basis “looks through” these subsidiaries to the underlying assets and liabilities they hold, and it reports the investments as the Portfolio APM. Under IFRS, the Company and its subsidiaries are reported separately. The assets and liabilities of the subsidiaries are presented on the face of the IFRS balance sheet as a single carrying value. The same is true for the IFRS and APM basis of the Cash flow statement.
The following table sets out IFRS metrics and the APM equivalents:
| IFRS | APM | ||
| Investments | £1,298.1m (January 2022: £1,123.7m) | Portfolio | £1,353.7m (January 2022: £1,172.2m) |
| NAV | £1,268.8m (January 2022: £1,158.0m) | ||
| Cash flows from the sale of portfolio investments | £18.2m (July 2021: £122.0m) | Total Proceeds | £106.8m (July 2021: £184.7m) |
| Realisation Proceeds | £106.8m (July 2021: £175.3m) | ||
| Cash flows related to the purchase of Portfolio investments | £29.6m (July 2021: £82.2m) | Total New Investment | £143.7m (July 2021: £133.3m) |
The Glossary on page 28 include definitions for all APM and, where appropriate, a reconciliation between APM and IFRS.
Our investment strategy
We focus on investing in buyouts of businesses that are profitable, cash generative and have defensive growth characteristics that we believe will deliver strong and resilient returns across economic cycles. There are a number of themes that contribute to a business having, in our view, such characteristics. These include (among others) attractive market positioning, providing mission-critical services to their clients and customers, ability to pass on price increases, and structurally high margins.
We take an active approach to portfolio construction, with a flexible mandate that enables us to deploy capital in primary, secondary and Direct Investments. Investments managed by ICG account for 29.2% of the Portfolio. We believe our investment strategy results in a differentiated portfolio with attractive growth characteristics. Our Portfolio composition is shown below:
| Investment category | 31 July 2022£m | 31 July 2022% of Portfolio | 31 July 2021% of Portfolio |
| ICG-managed investments1 | 395.6 | 29.2% | 26.9% |
| Third Party Direct Investments | 243.8 | 18.0% | 15.2% |
| Third Party Secondary Investments | 65.8 | 4.9% | 6.2% |
| High Conviction Investments | 705.2 | 52.1% | 48.3% |
| Third Party Primary Funds | 648.5 | 47.9% | 51.7% |
| Portfolio | 1,353.7 | 100% | 100% |
| 1 ICG-managed investments include Primary, Secondary and Direct Investments |
Geographically we focus on the developed markets of North America and Europe, including the UK, which have deep and mature private equity markets supported by a robust corporate governance framework. The geographic profile of the Portfolio is shown below:
| Geography | 31 July 2022% of Portfolio1 |
| North America | 45.4% |
| Europe | 29.1% |
| UK | 18.3% |
| Other | 7.2% |
| Total | 100% |
| 1 Calculated by reference to the location of the headquarters of the underlying Portfolio companies on a value-weighted basis | |
Investment strategy in practice
Our focus on defensive growth has remained at the forefront of our investment decisions during the period. In a time of heightened macroeconomic uncertainty, we target investments with fewer unknown variables. This year we have identified a number of investment opportunities that can provide this. Firstly, leveraging ICG’s expertise in structured transactions, we made two Direct Investments during the period, both of which include contractual downside protection. Secondly, we have increased our allocation to Secondary Investments: in the secondary market, an investor is purchasing a more mature portfolio with clear visibility of the underlying assets which provides greater conviction in the financial profile of the investment. Finally, we have ensured that we will remain appropriately invested through the cycle by making commitments to high-quality Third Party managers with strong track records, which we expect to be invested over the coming 3-4 years.
Performance overview
Our growth during the period extends the track record of strong investment performance. Over the last five years, our Portfolio has generated an annualised Portfolio Return on a Local Currency Basis of 20.6% and 21.9% on an LTM basis. At 31 July 2022, our Portfolio was valued at £1,353.7m, which reflects a Portfolio Return on a Local Currency Basis in the first half of the financial year of 7.4% (H1 FY22: 14.9%).
Due to the geographic diversification of our Portfolio, the reported value is impacted by changes in foreign exchange rates. During the period, the Portfolio increased by £57.6m / 5.0% due to FX movements, driven primarily by US Dollar strengthening against Sterling. Including the positive FX impact, Portfolio growth during the period was 12.4%.
The net result for shareholders was that ICG Enterprise Trust generated a NAV per Share Total Return of 10.9% during H1 FY23, ending the period with a NAV per Share of 1,852p.
| Movement in the Portfolio£m | Six months to31 July 2022 | Six months to31 July 2021 |
| Opening Portfolio | 1,172.2 | 949.2 |
| Total New Investments | 143.7 | 133.3 |
| Total Proceeds | (106.8) | (184.7) |
| Net (proceeds)/investments | 36.9 | (51.4) |
| Valuation movement1 | 87.0 | 141.6 |
| Currency movement | 57.6 | (20.4) |
| Closing Portfolio | 1,353.7 | 1,019.0 |
| % Portfolio growth (local currency) | 7.4% | 14.9% |
| % currency movement | 5.0% | (2.1)% |
| % Portfolio growth (Sterling) | 12.4% | 12.8% |
| Impact of (net cash)/net debt | 0.2% | (0.0)% |
| Expenses and other income | (0.9)% | (1.1)% |
| Co-investment Incentive Scheme Accrual | (0.8)% | (0.8)% |
| Impact of share buybacks and dividend reinvestment | 0.0% | 0.2% |
| NAV per Share Total Return | 10.9% | 11.1% |
| 1 99.6% of the Portfolio has a Valuation Date of 30 June 2022 or later (July 2021: 98.9%). | ||
During the first half, High Conviction Investments generated a 9.2% Portfolio Return on a Local Currency Basis (H1 FY22: 9.6%). Within this, ICG LP Secondaries was the largest contributor to performance among fund investments. A number of Direct Investments also performed strongly during the period, including ECG and Endeavour Schools (driven by strong operational performance) and IRI (which completed its merger with NPD on 1 August 2022).
Third Party Funds generated a 5.7% Portfolio Return on a Local Currency Basis for the period (H1 FY22: 20.3%), driven by a strong performance of a number of funds including those managed by Bowmark, Graphite and Gridiron supported by a combination of underlying performance and signed Realisations
Performance of Portfolio companiesOur largest 30 underlying companies (“Top 30 companies”) represented 40.6% of the Portfolio by value at 31 July 2022 (31 January 2022: 39.0%). There were 3 new entrants to our Top 30 companies within the period: Newton (#17), EG Group (#27), and Travel Nurse Across America (#30). All of these were existing holdings in the Portfolio prior to the start of the financial year. The inclusion of Newton within the Top 30 is primarily a result of a new investment into the company during the period. More information on new investments made during the period can be found on page 8. The inclusion of EG Group and Travel Nurse in the Top 30 reflects a combination of Portfolio reweighting due to realisation activity and strong operational performance.
The Top 30 companies continued to deliver impressive operational performance during the period, reporting double-digit LTM revenue and EBITDA growth, along with some EBITDA margin expansion. The net leverage of the Portfolio companies has remained broadly in-line with levels at year-end.
| Top 30 companies performance overview | 31 July 2022 | 31 January 2022 |
| LTM revenue growth1 | 27.5% | 27.1% |
| LTM EBITDA growth1 | 26.3% | 29.6% |
| LTM EBITDA margin2 | 27.0% | 26.6% |
| Net Debt / EBITDA3 | 4.3x | 4.3x |
| Enterprise Value / EBITDA3 | 14.5x | 14.6x |
| Total % of Portfolio | 40.6% | 39.0% |
| 1 Growth rates exclude Ambassador Theatre Group (#11/30), for which prior year comparators are not meaningful2 EBITDA margin excludes MoMo Online Mobile Services (#26/30) as EBITDA is not a relevant metric3 Petsmart/Chewy (#1/30) and MoMo Online Mobile Services (#26/30)were excluded from this analysis, as EBITDA is not an appropriate valuation metric | ||
More detailed disclosure on the financial and operating performance of the Portfolio can be found on page 13.
Quoted Companies
We do not actively invest in publicly quoted companies but gain listed investment exposure when IPOs are used as a route to exit an investment. In these cases, exit timing typically lies with the third party manager alongside whom we have invested.
At 31 July 2022, ICG Enterprise Trust’s exposure to quoted companies was valued at £119.1m, equivalent to 8.8% of the Portfolio value. The period saw broad-based selldowns across public equity markets, which impacted our quoted investments including our largest listed exposure, Chewy, whose share price fell 18.4% in local currency (USD) during the period. ICG Enterprise Trust’s investment in PetSmart (which includes Chewy) has delivered a strong return on investment for our shareholders and remains our largest underlying exposure. Across the Portfolio, local currency losses from declines in public market values were largely offset in sterling terms by positive FX gains.
At 31 July 2022 there was one quoted investment that individually accounted for 0.5% or more of the Portfolio value:
| Company | Ticker | 31 July 2022% of Portfolio value | |
| Chewy (part of PetSmart)1 | CHWY-US | 3.4% | |
| Other | 5.4% | ||
| Total | 8.8% | ||
| 1 % of Portfolio value includes entire holding of PetSmart and Chewy. Majority of value is within Chewy | |||
Realisation activity
After a slower first quarter, we saw a number of larger realisations during the second quarter, resulting in Total Proceeds for the first half of £106.8m. There were 30 Full Exits of Portfolio holdings during the period, generating proceeds of £73.2m. Full Exits were completed at an average Multiple to Cost of 3.3x, and an average Uplift To Carrying Value of 25.2%. We believe that the ability to continue to sell assets at an uplift to NAV reflects the continuing demand for high quality assets and underpins our confidence in the valuation of our Portfolio. Partial exits generated Realisation Proceeds of £33.6m during the period.
The largest exit during the period was Random42, a scientific animation and digital media services company, which was realised via trade sale to a specialist medical communications company in June. The 10 largest underlying realisations in the period can be seen in the table below:
| Investment | Description | Manager | Country | Proceeds £m |
| Random42 | Provider of medical animation and digital media services | Graphite | UK | 5.6 |
| proAlpha | Provider of application software services | ICG | Germany | 5.1 |
| Park Holidays UK | Operator of UK campsites and holiday parks | ICG | UK | 4.9 |
| Romans | Provider of residential sales & letting services | Bowmark | UK | 4.3 |
| Pirum Systems | Provider of financial services technology | Bowmark | UK | 4.2 |
| Fortna | Provider of logistics systems integration and warehouse execution software | Thomas H. Lee | US | 4.1 |
| Exterro | Provider of information governance software | Leeds Equity | US | 4.0 |
| Refresco Holding | Provider of global independent beverage solutions | PAI | Netherlands | 3.7 |
| The Instant Group | Provider of property outsourcing services | Bowmark | UK | 3.5 |
| Etanco | Manufacturer, designer and distributor of fixing/fastening systems | ICG | France | 3.4 |
| Total of 10 largest underlying realisations | 42.8 | |||
New investment activity
In total during the period, we invested £143.7m, of which £86.4m (60.1%) was in High Conviction Investments and £57.3m was Drawdowns from Third Party Funds.
| Investment Category | 6 months to 31 July 2022Cost £m | % of new investments |
| High Conviction Investments | 86.4 | 60.1% |
| Drawdowns from Third Party Funds | 57.3 | 39.9% |
| Total | 143.7 | 100% |
£64.4m of new investments during the period were Primary fund drawdowns, of which £57.3m was to Third Party managers and the remainder (£7.1m) was to ICG managed funds. On top of this, we made Secondary Investments of £49.2m and Direct Investments of £30.1m
| Investment Category | 6 months to 31 July 2022 Cost £m | 6 months to 31 July 2022 % of new investments |
| Primary | 64.4 | 44.8% |
| Secondary | 49.2 | 34.2% |
| Direct | 30.1 | 21.0% |
| Total | 143.7 | 100% |
During the period we completed two Direct Investments: Precisely (a £15.6m investment alongside Clearlake Capital and Insight Partners), and Newton (a £12.8m investment alongside ICG). Both transactions were structured with enhanced downside protection, and both represent co-investments into existing holdings, giving us deeper understanding of the underlying businesses. The balance of new Direct Investments is comprised of £1.7m of incremental drawdowns across 5 existing Direct Investments.
The 10 largest underlying new investments in the period were as follows:
| Investment | Description | Manager | Country | Cost £m1 |
| Precisely | Provider of enterprise software | Clearlake | US | 15.6 |
| Newton | Provider of management consulting services | ICG | UK | 12.8 |
| proAlpha II | Provider of application software services | ICG | Germany | 2.7 |
| CeramTec | Manufacturer of high performance ceramics | BC Partners | Germany | 2.0 |
| Vertical Supply Group | Provider of technical equipment, tools, and personal protective equipment (PPE) | Gridiron | US | 1.7 |
| Arcaplanet | Retailer of pet foods, accessories and health and grooming products | Cinven | Italy | 1.5 |
| Ufinet | Operator of fibre network communications | Cinven | Brazil | 1.5 |
| Veonet | European ophthalmological clinics | PAI | Germany | 1.4 |
| McAfee Associates | Supplier of anti-virus software | Permira | US | 1.3 |
| Brooks Automation | Provider of semiconductor manufacturing solutions | Thomas H. Lee | US | 1.2 |
| Top 10 largest underlying new investments | 41.7 | |||
| 1 Represents ICG Enterprise Trust's indirect investment (share of fund cost) plus any amounts paid for Co-investments in the period. | ||||
Commitments
During the first half, we made new Commitments to funds of £164.1m. This includes commitments to two ICG-managed funds totalling £65.9m. Both of these were to funds focussed on Secondary Investments, as part of our strategic ambition to increase our exposure to the secondary market.
Commitments to Third Party Funds during the period totalled £98.2m. We maintained our diligence in identifying leading managers who complement our long-term strategic objectives, are committed to values aligned to our Responsible Investing framework, and have an investment approach that suits our defensive growth focus. A number of commitments were made to managers with whom we have longstanding relationships and who have a strong track record of offering us attractive co-investment opportunities, such as PAI and Gridiron. At the same time, we continued to originate new opportunities to work with leading managers, and during the period committed £8.0m to Thoma Bravo XV, a US-based manager focusing on global mid-market and large buyouts with a focus on subscription-based software businesses.
The breakdown of new Commitments to funds was as follows:
| Fund | Manager | Focus | Geography | Commitment during the period |
| ICG LP Secondaries Fund I | ICG | LP-led secondary transactions | Europe/North America | $60.0m (£45.5m) |
| ICG Ludgate Hill III | ICG | Secondary portfolio | Europe/North America | $25.0m (£20.4m) |
| PAI Europe VIII | PAI | Mid-market and large buyouts | Europe | €25.0m (£20.9m) |
| Advent X | Advent | Large buyouts | Europe | €20.0m (£16.8m) |
| Gridiron V | Gridiron | Mid-market buyouts | North America | $20.0m (£15.0m) |
| Permira VIII | Permira | Large buyouts | Global | €15.0m (£12.6m) |
| Bain Capital Europe VI | Bain Capital | Mid-market and large buyouts | Europe | €15.0m (£12.6m) |
| Thoma Bravo XV | Thoma Bravo1 | Mid-market and large buyouts | Global | $10.0m (£8.0m) |
| Bain Tech Opportunities II | Bain Capital | Mid-market buyouts | North America | $5.0m (£4.1m) |
| Hg Genesis X | Hg Capital | Mid-market buyouts | Europe | €5.0m (£4.2m) |
| Hg Saturn III | Hg Capital | Mid-market and large buyouts | Europe | $5.0m (£4.0m) |
| 1 New manager relationship during the period | ||||
Balance sheet and financing
At 31 July 2022 we had a cash balance of £12.7m (31 January 2022: £41.3m) and total available liquidity of £173.9m. At 31 July 2022, the drawn debt was £39.1m (31 January 2022: £0.0m).
During the period, we increased the size of our Revolving Credit Facility ("RCF") to €240m (from €200m previously), in keeping with the Company’s higher net asset value. In addition, the maturity of the RCF was extended by one year to February 2026. The other key terms remain unchanged. The RCF is available for general corporate purposes, including short-term financing of investments such as the Drawdown of Commitments to funds. We do not intend to be geared other than for short-term working capital purposes.
| £m | |
| Cash at 31 January 2022 | 41.3 |
| Realisation Proceeds | 106.8 |
| Fund Disposals | - |
| Third Party Fund Drawdowns | (57.3) |
| High Conviction Investments | (86.4) |
| Shareholder returns | (15.1) |
| FX and other | 23.4 |
| Cash at 31 July 2022 | 12.7 |
| Available undrawn debt facilities | 161.2 |
| Cash and undrawn debt facilities (total available liquidity) | 173.9 |
At 31 July 2022 the Portfolio represented 106.7% of net assets (31 January 2022: 101.2%).
| 31 July 2022£m | 31 January 2022£m | ||
| Portfolio | 1,353.7 | 1,172.2 | |
| Cash | 12.7 | 41.3 | |
| Co-investment Incentive Scheme Accrual | (57.1) | (49.1) | |
| Other Net Liabilities1 | (40.5) | (6.4) | |
| Net assets | 1,268.8 | 1,158.0 | |
| 1 Other Net Liabilities include £39.1m of drawn debt. | |||
At 31 July 2022, we had Undrawn Commitments of £528.1m (31 January 2022: £418.6m) of which 17.9% (£94.6m) were to funds outside of their Investment Period.
| 31 July 2022£m | 31 January 2022£m | |
| Undrawn Commitments – funds in Investment Period | 433.5 | 322.8 |
| Undrawn Commitments – funds outside Investment Period | 94.6 | 95.8 |
| Total Undrawn Commitments | 528.1 | 418.6 |
| Total available liquidity (including facility) | (173.9) | (208.4) |
| Overcommitment (including facility) | 354.2 | 210.2 |
| Overcommitment % of net asset value | 27.9% | 18.2% |
Our objective is to be fully invested through the cycle, while ensuring that we have sufficient liquidity to be able to take advantage of attractive investment opportunities as they arise. Drawdowns of commitments are funded from Total Proceeds and, where appropriate, the debt facility.
Dividend and share buyback
In line with ICG Enterprise Trust’s progressive dividend policy, the Board has declared a dividend of 7p per share in respect of the second quarter, taking total dividends for the period to 14p (H1 FY22: 12p). It remains the Board’s intention, in the absence of any unforeseen circumstances, to declare total dividends of at least 30p per share for the financial year, implying an increase of 11.1% on the previous financial year.
In addition, as part of its ongoing focus on optimising the return that the Company delivers for its shareholders, the Board has resolved to commence a long-term programme of share buybacks. This programme, effective as of this announcement, will sit alongside the Company’s existing progressive dividend policy and may be executed at any discount to NAV.
The Board believes the buyback programme demonstrates the Manager’s discipline around capital allocation; underlines the Board’s confidence in the long-term prospects of the Company, its cashflows and NAV; will enhance the NAV per share; and, over time, may positively influence the volatility of the Company’s discount and its trading liquidity.
The Board will review quarterly the size, impact and mandate of the buyback programme in conjunction with its advisers to help ensure it is working in the long-term interests of shareholders and in line with the objectives outlined above.
The Board retains absolute discretion as to the execution, pricing and timing of any share buybacks, subject to the conditions set out in the authority to execute share buybacks approved at the Company's 2022 annual general meeting. Any shares repurchased by the Company will be held in treasury. Any repurchase of shares will be announced no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred.
Activity since the period end
Notable activity between 1 August 2022 and 31 August 2022 has included:
Realisation Proceeds of £45.2mNew investments of £9.4m, which included a new Direct Investment in Vistage Worldwide alongside Gridiron Capital One new Fund Commitment of $20.0mIn September, ICG Enterprise Trust completed a Direct Investment of €14.9m into ECA Group.
Outlook
We remain alert to the evolving inflationary pressures and macroeconomic challenges that companies must navigate, as well as the ongoing volatility impacting certain foreign exchange rates . Importantly, the operating performance of our portfolio companies remains resilient thus far.
We have a high bar for executing transactions in today’s environment. We are particularly focussed on assessing risks around GDP-linked revenue, discretionary spending, and inflation, and identifying differentiated investments that can reduce the risk of unknown variables.
With our clear investment approach and flexible mandate executed by a dedicated and experienced investment team, we believe ICG Enterprise Trust remains well-positioned to implement its strategy in these uncertain market conditions.
ICG Private Equity Fund Investments Team
11 October 2022
SUPPLEMENTARY INFORMATION
This section presents supplementary information regarding the Portfolio (see Manager’s Review and the Glossary for further details and definitions).
Portfolio composition
We have a flexible mandate that enables us to deploy capital in primary, secondary and Direct Investments. Investments managed by ICG account for 29.2% of the Portfolio.
| Investment Category | 31 July 2022£m | % of Portfolio |
| Primary | 718.3 | 53.1% |
| Secondary | 263.1 | 19.4% |
| Direct | 372.3 | 27.5% |
| Total | 1,353.7 | 100.0% |
The Portfolio is actively managed and structured to strike a balance between both concentration, so that Direct Investments can meaningfully impact performance, and diversification, so that we are not overly exposed to the risks of individual portfolio companies or sectors. We also seek to ensure appropriate Portfolio diversification by vintage, by sector and by geography.
| Portfolio by calendar year of investment | % of value of underlying investments31 July 2022 | % of value of underlying investments31 January 2022 | |
| 2022 | 9.5% | 0.1% | |
| 2021 | 27.2% | 25.1% | |
| 2020 | 10.8% | 12.3% | |
| 2019 | 14.2% | 15.4% | |
| 2018 | 15.5% | 17.9% | |
| 2017 | 6.9% | 9.6% | |
| 2016 | 4.8% | 5.9% | |
| 2015 | 4.9% | 6.6% | |
| 2014 and older | 6.2% | 7.1% | |
| Total | 100.0% | 100.0% | |
| Portfolio by sector | % of value of underlying investments31 July 2022 | % of value of underlying investments31 January 2022 |
| TMT | 23.9% | 24.1% |
| Consumer goods and services | 19.6% | 20.8% |
| Healthcare | 14.7% | 16.6% |
| Business services | 11.7% | 11.0% |
| Industrials | 8.0% | 8.3% |
| Financials | 7.3% | 5.5% |
| Education | 5.9% | 5.1% |
| Leisure | 4.1% | 3.9% |
| Other | 4.8% | 4.7% |
| Total | 100.0% | 100.0% |
| Portfolio by geography1 | % of value of underlying investments31 July 2022 | % of value of underlying investments31 January 2022 | ||||
| North America | 45.4% | 41.4% | ||||
| Europe | 29.1% | 32.1% | ||||
| UK | 18.3% | 18.6% | ||||
| Other | 7.2% | 7.9% | ||||
| Total | 100.0% | 100.0% | ||||
| 1 Geographic exposure is calculated by reference to the location of the headquarters of the underlying Portfolio companies | ||||||
| Portfolio by fund currency1 | 31 July2022£m | 31 July2022% | 31 January2022£m | 31 January2022% | ||
| US Dollar | 660.2 | 48.8% | 508.7 | 43.4% | ||
| Euro | 568.3 | 42.0% | 558.5 | 47.6% | ||
| Sterling | 125.2 | 9.2% | 105.0 | 9.0% | ||
| Total | 1,353.7 | 100.0% | 1,172.2 | 100.0% | ||
| 1 Currency exposure by reference to the reporting currency of each fund . | ||||||
Top 30 Portfolio Dashboard
The Top 30 underlying investments in the Portfolio (‘the Top 30’) represented 41.8% of the Portfolio value at 31 July 2022. The tables below provide enhanced disclosure on the dispersion of financial and operational performance among the Top 30 on a value-weighted basis.
| Sector exposure | % of value of Top 3031 July 2022 |
| TMT | 29.6% |
| Consumer goods and services | 22.1% |
| Business services | 15.9% |
| Healthcare | 11.5% |
| Education | 10.5% |
| Leisure | 5.5% |
| Industrials | 4.9% |
| Financials | - |
| Total | 100.0% |
| Geographic exposure1 | % of value of Top 3031 July 2022 |
| North America | 48.3% |
| Europe (ex-UK) | 21.7% |
| UK & Other | 30.0% |
| Total | 100.0% |
| 1 Geographic exposure is calculated by reference to the location of the headquarters of the underlying Portfolio companies | |
| LTM revenue growth | % of value of Top 3031 July 2022 | ||
| 7.5% | |||
| 0-10% | 17.4% | ||
| 10-20% | 30.6% | ||
| 20-30% | 20.4% | ||
| >30% | 21.2% | ||
| n.a/n.m1 | 3.0% | ||
| Total | 100.0% | ||
| n.a/n.m reflects Ambassador Theatre Group (#11/30), for which prior year comparators are not meaningful | |||
Top 30 average LTM revenue growth: 27.5% (weighted average, based on contribution to Portfolio value at 31 July 2022; any exclusions from average calculation are detailed in the footnotes to the table).
| LTM EBITDA growth | % of value of Top 3031 July 2022 | |||
| 18.1% | ||||
| 0-10% | 31.1% | |||
| 10-20% | 15.8% | |||
| 20-30% | 11.6% | |||
| >30% | 20.4% | |||
| n.a/n.m1 | 3.0% | |||
| Total | 100.0% | |||
| n.a/n.m reflects Ambassador Theatre Group (#11/30), for which prior year comparators are not meaningful | ||||
Top 30 average LTM EBITDA growth: 26.3% (weighted average, based on contribution to Portfolio value at 31 July 2022; any exclusions from average calculation are detailed in the footnotes to the table).
| LTM EBITDA margin | % of value of Top 3031 July 2022 | |||
| 8.4% | ||||
| 10-20% | 25.9% | |||
| 20-30% | 24.5% | |||
| 30-40% | 23.1% | |||
| >40% | 16.4% | |||
| n.a/n.m1 | 1.8% | |||
| Total | 100.0% | |||
| 1 EBITDA margin excludes MoMo Online Mobile Services (#26/30) as EBITDA is not a relevant metric | ||||
Top 30 average LTM EBITDA margin: 27.0% (weighted average, based on contribution to Portfolio value at 31 July 2022; any exclusions from average calculation are detailed in the footnotes to the table).
| EV/EBITDA multiple | % of value of Top 3031 July 2022 | ||
| 0-10x | 6.3% | ||
| 10-12x | 14.2% | ||
| 12-13x | 21.2% | ||
| 13-15x | 14.4% | ||
| 15-17x | 16.9% | ||
| 17-20x | 9.7% | ||
| >20x | 7.2% | ||
| n.a/n.m1 | 10.2% | ||
| Total | 100.0% | ||
| 1 n.a/n.m reflects Petsmart/Chewy (#1/30) and MoMo Online Mobile Services (#26/30), for which EBITDA is not an appropriate valuation metric | |||
Top 30 average EV/EBITDA multiple: 14.5x (weighted average, based on contribution to Portfolio value at 31 July 2022; any exclusions from average calculation are detailed in the footnotes to the table).
| Net Debt/EBITDA multiple dispersion | % of value of Top 3031 July 2022 | ||
| 10.1% | |||
| 2-4x | 23.7% | ||
| 4-5x | 26.9% | ||
| 5-7x | 15.6% | ||
| >7x | 13.5% | ||
| n.a/n.m1 | 10.2% | ||
| Total | 100.0% | ||
| 1 n.a/n.m reflects Petsmart/Chewy (#1/30) and MoMo Online Mobile Services (#26/30), for which EBITDA is not an appropriate valuation metric | |||
Top 30 average ND/EBITDA multiple: 4.3x (weighted average, based on contribution to Portfolio value at 31 July 2022; any exclusions from average calculation are detailed in the footnotes to the table).
Top 30 companies
The table below presents the 30 companies in which ICG Enterprise Trust had the largest investments by value at 31 July 2022.The valuations are gross of underlying managers fees and Carried interest.
| Company | Manager | Year of investment | Country | Value as a % of Portfolio | |
| 1 | PetSmart | ||||
| Retailer of pet products and services | BC Partners | 2015 | United States | 3.4% | |
| 2 | IRI | ||||
| Provider of mission-critical data and predictive analytics to consumer goods manufacturers | New Mountain | 2018 | United States | 2.9% | |
| 3 | Minimax | ||||
| Supplier of fire protection systems and services | ICG | 2018 | Germany | 2.7% | |
| 4 | Endeavor Schools | ||||
| Provider of paid private schooling | Leeds Equity | 2018 | United States | 2.3% | |
| 5 | Yudo | ||||
| Designer and manufacturer of hot runner systems | ICG | 2017 / 2018 | South Korea | 2.0% | |
| 6 | Leaf Home Solutions | ||||
| Provider of home maintenance services | Gridiron | 2016 | United States | 1.9% | |
| 7 | Precisely | ||||
| Provider of enterprise software | Clearlake | 2021 /2022 | United States | 1.8% | |
| 8 | Froneri | ||||
| Manufacturer and distributor of ice cream products | PAI | 2013 / 2019 | United Kingdom | 1.7% | |
| 9 | DOC Generici | ||||
| Manufacturer of generic pharmaceutical products | ICG | 2019 | Italy | 1.7% | |
| 10 | AML RightSource | ||||
| Provider of compliance and regulatory services and solutions | Gridiron | 2020 | United States | 1.2% | |
| 11 | Ambassador Theatre Group | ||||
| Operator of theatres and ticketing platforms | ICG / Providence | 2021 | United Kingdom | 1.2% | |
| 12 | DomusVi | ||||
| Operator of retirement homes | ICG | 2017 / 2021 | France | 1.2% | |
| 13 | David Lloyd Leisure | ||||
| Operator of premium health clubs | TDR | 2013 / 2020 | United Kingdom | 1.2% | |
| 14 | DigiCert | ||||
| Provider of enterprise internet security solutions | ICG | 2021 | United States | 1.2% | |
| 15 | Curium Pharma | ||||
| Supplier of nuclear medicine diagnostic pharmaceuticals | ICG | 2020 | United Kingdom | 1.1% | |
| 16 | Visma | ||||
| Provider of business management software and outsourcing services | HgCapital / ICG | 2017 / 2020 | Norway | 1.1% | |
| 17 | Newton | ||||
| Provider of management consulting services | ICG | 2021 / 2022 | United Kingdom | 1.1% | |
| 18 | European Camping Group | ||||
| Operator of premium campsites and holiday parks | PAI | 2021 | France | 1.1% | |
| 19 | Ivanti | ||||
| Provider of IT management solutions | Charlesbank / ICG | 2021 | United States | 1.1% | |
| 20 | PSB Academy | ||||
| Provider of private tertiary education | ICG | 2018 | Singapore | 1.0% | |
| 21 | Crucial Learning | ||||
| Provider of corporate training courses focused on communication skills and leadership development | Leeds Equity | 2019 | United States | 1.0% | |
| 22 | Planet Payment | ||||
| Provider of integrated payments services focused on hospitality and luxury retail | Advent / Eurazeo | 2021 | Ireland | 0.9% | |
| 23 | Brooks Automation | ||||
| Provider of semiconductor manufacturing solutions | Thomas H. Lee | 2021 / 2022 | United States | 0.9% | |
| 24 | Class Valuation | ||||
| Provider of residential mortgage appraisal management services | Gridiron | 2021 | United States | 0.8% | |
| 25 | Davies Group | ||||
| Specialty business process outsourcing service provider | BC Partners | 2021 | United Kingdom | 0.8% | |
| 26 | MoMo Online Mobile Services | ||||
| Operator of remittance and payment services via mobile e-wallet | ICG | 2019 | Vietnam | 0.7% | |
| 27 | EG Group | ||||
| Operator of petrol stations | TDR | 2014 | United Kingdom | 0.7% | |
| 28 | RegEd | ||||
| Provider of SaaS-based governance, risk and compliance enterprise software solutions | Gryphon | 2018 / 2019 | United States | 0.6% | |
| 29 | AMEOS Group | ||||
| Operator of private hospitals | ICG | 2021 | Switzerland | 0.6% | |
| 30 | Travel Nurse Across America | ||||
| Provider of travel nurse staffing services | Gridiron | 2016 | United States | 0.6% | |
| Total of the 30 largest underlying investments | 40.6% |
The 30 largest fund investmentsThe table below presents the 30 largest funds by value at 31 July 2022. The valuations are net of underlying managers’ fees and Carried interest.
| Fund | Year of commitment | Country/ region | Value £m | Outstanding commitment £m | |
| 1 | ICG Ludgate Hill I | ||||
| Secondary portfolio | 2021 | Europe/North America | 42.5 | 13.8 | |
| 2 | ICG Strategic Equity Fund III | ||||
| GP-led secondary transactions | 2018 | Global | 35.5 | 11.0 | |
| 3 | Graphite Capital Partners VIII | ||||
| Mid-market buyouts | 2013 | UK | 36.2 | 4.4 | |
| 4 | ICG Europe VII | ||||
| Mezzanine and equity in mid-market buyouts | 2018 | Europe | 36.1 | 10.1 | |
| 5 | ICG LP Secondaries Fund I | ||||
| LP-led secondary transactions | 2023 | Europe/North America | 35.7 | 13.2 | |
| 6 | Gridiron Capital Fund III | ||||
| Mid-market buyouts | 2016 | North America | 32.4 | 4.3 | |
| 7 | CVC European Equity Partners VII | ||||
| Large buyouts | 2017 | Europe/North America | 29.6 | 2.1 | |
| 8 | CVC European Equity Partners VI | ||||
| Large buyouts | 2013 | Europe/North America | 27.1 | 2.1 | |
| 9 | PAI Strategic Partnerships | ||||
| Mid-market and large buyouts | 2019 | Europe | 22.8 | 0.6 | |
| 10 | Sixth Cinven Fund | ||||
| Large buyouts | 2016 | Europe | 22.2 | 1.3 | |
| 11 | ICG Ludgate Hill III | ||||
| Secondary portfolio | 2023 | Europe/North America | 21.7 | - | |
| 12 | Gridiron Capital Fund IV | ||||
| Mid-market buyouts | 2019 | North America | 21.6 | 2.8 | |
| 13 | BC European Capital IX | ||||
| Large buyouts | 2011 | Europe/North America | 21.1 | 0.7 | |
| 14 | Advent Global Private Equity IX | ||||
| Large buyouts | 2019 | Europe/North America | 18.8 | 3.8 | |
| 15 | Thomas H Lee Equity Fund VIII | ||||
| Mid-market and large buyouts | 2017 | North America | 18.3 | 3.6 | |
| 16 | Resolute IV | ||||
| Mid-market buyouts | 2018 | North America | 18.2 | 1.7 | |
| 17 | Oak Hill V | ||||
| Mid-market buyouts | 2019 | North America | 17.9 | 1.8 | |
| 18 | New Mountain Partners V | ||||
| Mid-market buyouts | 2017 | North America | 17.1 | 1.9 | |
| 19 | PAI Europe VII | ||||
| Mid-market and large buyouts | 2017 | Europe | 16.8 | 10.3 | |
| 20 | Advent Global Private Equity VIII | ||||
| Large buyouts | 2016 | Europe/North America | 16.4 | - | |
| 21 | BC European Capital X | ||||
| Large buyouts | 2016 | Europe | 16.4 | 2.5 | |
| 22 | TDR Capital III | ||||
| Mid-market and large buyouts | 2013 | Europe | 14.5 | 1.6 | |
| 23 | Gryphon V | ||||
| Mid-market buyouts | 2019 | North America | 14.3 | 1.9 | |
| 24 | ICG Ludgate Hill II | ||||
| Secondary portfolio | 2022 | North America | 14.2 | 5.7 | |
| 25 | AEA VII | ||||
| Mid-market buyouts | 2019 | North America | 13.6 | 4.1 | |
| 26 | ICG Augusta Partners Co-Investor | ||||
| Secondary fund restructurings | 2018 | Global | 13.6 | 18.9 | |
| 27 | Resolute II Continuation Fund | ||||
| Secondary fund restructuring | 2018 | North America | 13.1 | 2.2 | |
| 28 | Permira V | ||||
| Large buyouts | 2013 | Europe/North America | 12.6 | 0.4 | |
| 29 | Resolute V | ||||
| Mid-market buy-outs | 2021 | North America | 12.2 | 6.5 | |
| 30 | ICG Strategic Equity Fund IV | ||||
| GP-led secondary transactions | 2021 | Global | 12.1 | 18.6 | |
| Total of the largest 30 fund investments | 644.7 | 151.8 | |||
| Percentage of total investment Portfolio | 47.6% |
Commitments analysis
The following tables reflect Commitments at 31 July 2022. Original foreign currency Commitments are translated at 31 July 2022 exchange rates.
| Total Commitments | OriginalCommitment£m | OutstandingCommitment£m | AverageDrawdown% | % ofCommitments |
| Funds in Investment Period | 886.7 | 433.5 | 51.1% | 82.1% |
| Funds post Investment Period | 670.0 | 94.6 | 85.9% | 17.9% |
| Total | 1,556.7 | 528.1 | 66.1% | 100.0% |
| Movement in outstanding Commitments | 6 months to 31 July 2022£m |
| As at 1 February 2022 | 418.6 |
| New Fund Commitments | 164.1 |
| New Commitments relating to Co-investments | 42.4 |
| Drawdowns | (143.7) |
| Commitments released from Fund Disposals | - |
| Currency and other movements, including repayment of commitments which remain available to draw down | 96.7 |
| As at 31 July 2022 | 528.1 |
Commitments currency exposure
| Outstanding Commitments | 31 July2022£m | 31 July2022% | 31 January2022£m | 31 January2022% |
| – Sterling | 21.5 | 4.1% | 28.7 | 6.8% |
| – Euro | 256.7 | 48.6% | 200.4 | 47.9% |
| – US Dollar | 249.9 | 47.3% | 189.5 | 45.3% |
| Total | 528.1 | 100% | 418.6 | 100% |
Foreign exchange rates
| 31 July 2022 spot rate | |
| GBP:EUR | 1.1911 |
| GBP:USD | 1.2171 |
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the Company are substantially the same as those disclosed in the Strategic Report and in the notes to the Financial Statements in the Company’s latest Annual Report for the year ended 31 January 2022 which was approved by the Board on 11 May 2022.
The Company considers its principal risks (as well as several underlying risks comprising each principal risk) in four categories:
Investment risks: the risk to performance resulting from ineffective or inappropriate investment selection, execution or monitoring.
External risks: the risk of failing to deliver the Company’s investment objective and strategic goals due to external factors beyond the Company’s control.
Operational risks: the risk of loss resulting from inadequate or failed internal processes, people or systems and external event, including regulatory risk.
Financial risks: the risks of adverse impact on the Company due to having insufficient resources to meet its obligations or counterparty failure and the impact any material movement in foreign exchange rates may have on underlying valuations.
A comprehensive risk assessment process is undertaken regularly to re-evaluate the impact and probability of each risk materialising and the strategic, financial and operational impact of the risk. Where the residual risk is determined to be outside of appetite, appropriate action is taken.
In addition to these, emerging risks are regularly considered to assess any potential impact on the Company and todetermine whether any actions are required. The Board also regularly considers the evolution of requirements and standards relating to ESG and responsible investing.
Related Party Transactions
There have been no material changes in the related party transactions described in the 31 January 2022 Annual Report.
Directors’ Responsibility Statement
The Directors are responsible for preparing the Interim Report, in accordance with applicable laws and regulations. The Directors confirm that, to the best of their knowledge:
The condensed interim financial statements have been prepared in accordance with UK-adopted IAS 34 Interim condensed financial statements and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;The Chair’s Statement and Manager’s Review includes a fair review of the information required by DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; andThe interim financial statements include a fair review of the information required by DTR 4.28R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Company during that period, and any changes in the related party transactions described in the last Annual Report that could do so.The Interim Report was approved by the Board and the above Directors’ Responsibility Statement was signed on its behalf by the Chair.
Jane Tufnell
Chair
10 October 2022
INTERIM CONDENSED FINANCIAL STATEMENTS
Income statement
| Half year to 31 July 2022 (Unaudited) | Half year to 31 July 2021(Unaudited) | ||||||
| Notes | Revenuereturn£’000 | Capital return£’000 | Total£’000 | Revenuereturn£’000 | Capital return£’000 | Total £,000 | |
| Investment returns | |||||||
| Income, gains and losses on investments | 1,489 | 135,029 | 136,518 | 7,619 | 105,351 | 112,970 | |
| Deposit interest | - | - | - | 1 | - | 1 | |
| Other income | - | - | - | - | - | - | |
| Foreign exchange gains and losses | - | 46 | 46 | - | (601) | (601) | |
| 1,489 | 135,075 | 136,564 | 7,620 | 104,750 | 112,370 | ||
| Expenses | |||||||
| Investment management charges | (814) | (7,323) | (8,137) | (620) | (5,586) | (6,206) | |
| Other expenses | (1,115) | (1,394) | (2,509) | (1,266) | (1,094) | (2,360) | |
| (1,929) | (8,717) | (10,646) | (1,886) | (6,680) | (8,556) | ||
| Profit/(loss) before tax | (440) | 126,358 | 125,918 | 5,734 | 98,070 | 103,804 | |
| Taxation | 464 | (464) | - | (45) | 45 | - | |
| Profit/(loss) for the period | 24 | 125,894 | 125,918 | 5,689 | 98,115 | 103,804 | |
| Attributable to: | |||||||
| Equity shareholders | 24 | 125,894 | 125,918 | 5,689 | 98,115 | 103,804 | |
| Basic and diluted earnings per share | 183.78 | 150.96 | |||||
The columns headed ‘Total’ represent the income statement for the relevant financial years and the columns headed ‘Revenue return’ and ‘Capital return’ are supplementary information, in line with the Statement of Recommended Practice (SORP) for Financial Statements of Investment Trust Companies and Venture Capital Trusts issued by the Association of Investment Companies. There is no Other Comprehensive Income.
The notes on pages 24 to 27 are an integral part of the interim condensed financial statements.
Balance sheet
| Notes | 31 July2022(unaudited)£’000 | 31 January2022(audited)£’000 | |
| Non-current assets | |||
| Investments held at fair value | 7 | 1,298,053 | 1,123,747 |
| Current assets | |||
| Cash and cash equivalents | 12,691 | 41,328 | |
| Receivables | 2,682 | 2,205 | |
| 15,373 | 43,533 | ||
| Current liabilities | |||
| Payables | 5,537 | 9,303 | |
| Borrowings | 39,066 | - | |
| 44,603 | 9,303 | ||
| Net current assets / (liabilities) | (29,230) | 34,230 | |
| Total assets less current liabilities | 1,268,823 | 1,157,977 | |
| Capital and reserves | |||
| Share capital | 7,292 | 7,292 | |
| Capital redemption reserve | 2,112 | 2,112 | |
| Share Premium | 12,936 | 12,936 | |
| Capital reserve | 1,246,483 | 1,135,637 | |
| Revenue reserve | - | – | |
| Total equity | 1,268,823 | 1,157,977 | |
| Net Asset Value per Share (basic and diluted) | 6 | 1,851.8p | 1,690.1p |
The notes on pages 24 to 27 are an integral part of the interim condensed financial statements.
Cash flow statement
| Half year to 31 July 2022 (unaudited)£’000 | Half year to 31 July 2021 (unaudited)£’000 | ||
| Operating activities | |||
| Sale of Portfolio investments | 18,183 | 121,998 | |
| Purchase of Portfolio investments | (29,644) | (82,203) | |
| Net cash flows to subsidiary investments | (27,526) | (43,512) | |
| Interest income received from Portfolio investments | 1,338 | 3,260 | |
| Dividend income received from Portfolio investments | 151 | 4,359 | |
| Other income received | - | 1 | |
| Investment management charges paid | (11,114) | (2,915) | |
| Other expenses paid | (1,723) | (2,990) | |
| Net cash (outflow) from operating activities | (50,335) | (2,002) | |
| Financing activities | |||
| Bank facility fee | (2,018) | (871) | |
| Interest paid | (332) | (11) | |
| Purchase of own shares into treasury | - | (2,679) | |
| Credit Facility utilised | 56,737 | - | |
| Credit Facility repaid | (17,671) | - | |
| Equity dividends paid to shareholders | (15,074) | (9.628) | |
| Net cash inflow/(outflow) from financing activities | 21,642 | (13,189) | |
| Net (decrease) in cash and cash equivalents | (28,693) | (15,191) | |
| Cash and cash equivalents at beginning of period | 41,328 | 45,143 | |
| Net (decrease) in cash and cash equivalents | (28,693) | (15,191) | |
| Effect of changes in foreign exchange rates | 56 | (603) | |
| Cash and cash equivalents at end of period | 12,691 | 29,349 | |
The notes on pages 24 to 27 are an integral part of the interim condensed financial statements.
Statement of changes in equity
| Share capital £’000 | Capital redemptionreserve£’000 | Share Premium£’000 | Capital reserve£’000 | Revenue reserve£’000 | Total shareholders’equity£’000 | |
| Half year to 31 July 2022 (unaudited) | ||||||
| Opening balance at 1 February 2022 | 7,292 | 2,112 | 12,936 | 1,135,637 | - | 1,157,977 |
| Profit for the period and totalcomprehensive income | – | – | – | 125,896 | 24 | 125,920 |
| Dividends paid | – | – | – | (15,049) | (24) | (15,074) |
| Purchase of own shares intotreasury | – | – | – | - | - | - |
| Closing balanceat 31 July 2022 | 7,292 | 2,112 | 12,936 | 1,246,484 | - | 1,268,823 |
| Share capital £’000 | Capital redemptionreserve£’000 | Share Premium£’000 | Capital reserve£’000 | Revenue reserve£’000 | Total shareholders’equity£’000 | |
| Half year to 31 July 2021(unaudited) | ||||||
| Opening balance at 1 February 2021 | 7,292 | 2,113 | 12,936 | 929,676 | - | 952,016 |
| Profit for the period and totalcomprehensive income | – | - | - | 98,115 | 5,689 | 103,804 |
| Dividends paid | – | - | - | (3,938) | (5,689) | (9,627) |
| Purchase of own shares intoTreasury | – | - | - | (2,679) | - | (2,679) |
| Closing balanceat 31 July 2021 | 7,292 | 2,113 | 12,936 | 1,021,174 | - | 1,043,514 |
The notes on pages 24 to 27 are an integral part of the interim condensed financial statements.
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 July 2022
1. General information
These interim condensed financial statements relate to ICG Enterprise Trust Plc (‘the Company’). ICG Enterprise Trust Plc is registered in England and Wales and is incorporated in the United Kingdom. The Company is domiciled in the United Kingdom and its registered office is Procession House, 55 Ludgate Hill, London EC4M 7JW. The Company’s objective is to provide long-term growth by investing in private companies managed by leading private equity managers.
2. Financial information
The interim condensed financial statements are unaudited and do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Within the notes to the interim condensed financial statements, all current and comparative data covering the period to (or as at) 31 July 2022 is unaudited. Data given in respect of the year to 31 January 2022 is audited. The statutory accounts for the year to 31 January 2022 have been reported on by Ernst & Young LLP and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not contain an emphasis of matter paragraph, and (iii) did not contain any statements under section 498(2) or (3) of the Companies Act 2006.
3. Basis of preparation
The interim financial statements have been prepared in accordance with UK-adopted IAS 34 Interim financial Reporting (IAS 34) and on the basis of the accounting policies and methods of computation set out in the financial statements of the Company for the year to 31 January 2022.
The financial statements for the year to 31 January 2022 which were prepared in accordance with UK-adopted International Accounting Standards (IAS) and the Statement of Recommended Practice (SORP) for investment trusts issued by the Association of Investment Companies in April 2021.
The Company comprises one operating segment which is also a reporting segment.
Going concern
These financial statements have been prepared on a going concern basis and on the historical cost basis of accounting, modified for the revaluation of certain assets at fair value. In making their going concern assessment, the Directors have considered the potential impact of principal risks on the Company’s business activities; the Company’s net cash position; the availability of the Company’s credit facility and compliance with its covenants; and the Company’s cash flow projections, in particular those arising from committed but undrawn commitments.
The Directors have concluded based on the above assessment that the preparation of the interim condensed financial statements on a going concern basis, to 31 October 2023, a period of more than 12 months from the signing of the interim condensed financial statements, continues to be appropriate.
NOTES TO THE FINANCIAL STATEMENTS
4. Dividends
| Half year to 31 July 2022 £’000 | Half year to 31 July 2021 £’000 | |
| Third quarterly dividend in respect of prior year 6.0p per share (2021: 5.0p per share) | 4,111 | 3,438 |
| Final dividend in respect of year ended 31 January 2022: 9p per share (2021: 9.0p) | 6,167 | 6,189 |
| First quarterly dividend in respect of year ended 31 January 2023: 7.0p per share (2022: 6.0p) | 4,796 | - |
| Total | 15,074 | 9,627 |
The Board has approved an interim dividend for the quarter to 30 April 2022 of 7.0p per share (totalling £4.8m) which has been paid on 22 July 2022 to shareholders on the register on 8 July 2022. The Board has proposed a second interim dividend of 7.0p per share in respect of the year ended 31 January 2023 which will be paid on 2 December 2022 to shareholders on the register at the close of business on 18 November 2022.
5. Earnings per share
| Earnings per share | Half year to 31 July 2022 | Half year to 31 July 2021 |
| Revenue return per ordinary share | 0.04p | 8.27p |
| Capital return per ordinary share | 183.74p | 142.69p |
| Earnings per ordinary share (basic and diluted) | 183.78p | 150.96p |
| Weighted average number of shares | 68,517,055 | 68,761,530 |
The earnings per share figures are based on the weighted average numbers of shares set out above.
At 31 July 2022, the Company held 4,395,945 shares in treasury (31 July 2021: 4,395,945) leaving 68,517,055 (31 July 2021: 68,517,055) shares outstanding, all of which have equal voting rights.
6. Net Asset Value per Share
The Net Asset Value per Share is calculated as the net assets attributable to shareholders of £1,268.8m (31 January 2022: £1,158.0m) and 68,517,055 (31 January 2022: 68,517,055) ordinary shares in issue at the period end. There were no potentially dilutive ordinary shares, such as options or warrants, at either year end. Calculated on both the basic and diluted basis, the Net Asset Value per Share was 1,851.8p (31 January 2022: 1,690.1p).
NOTES TO THE FINANCIAL STATEMENTS
7. Fair Value estimation
IFRS 13 requires disclosure of fair value measurements of financial instruments categorised according to the following fair value measurement hierarchy:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).The valuation techniques applied are described in note 1 of the annual financial statements. No investments were categorised as level 1 or level 2.
The Company has no direct exposure to Level 1 assets. The fair value of the Company’s investment in subsidiary undertakings includes the valuation of Level 1 assets held by the subsidiary undertakings.
The following tables present the assets that are measured at fair value at 31 July 2022 and 31 January 2022. The Company had no financial liabilities measured at fair value at those dates.
| Level 1 | Level 2 | Level 3 | Total | ||||
| 31 July 2022 | £’000 | £’000 | £’000 | £’000 | |||
| Investments held at fair value | |||||||
| Unquoted investments | – | – | 238,718 | 238,718 | |||
| Quoted investments | – | – | - | - | |||
| Subsidiary undertakings | – | – | 1,059,335 | 1,059,335 | |||
| Total investments held at fair value | – | – | 1,298,053 | 1,298,053 |
| Level 1 | Level 2 | Level 3 | Total | ||||
| 31 January 2022 | £’000 | £’000 | £’000 | £’000 | |||
| Investments held at fair value | |||||||
| Unquoted investments | – | – | 202,009 | 202,009 | |||
| Quoted investments | – | – | – | ||||
| Subsidiary undertakings | – | – | 921,738 | 921,738 | |||
| Total investments held at fair value | – | – | 1,123,747 | 1,123,747 |
All quoted and unquoted investments are measured in accordance with IFRS 13.
NOTES TO THE FINANCIAL STATEMENTS
7. Fair Value estimation (continued)
Investments in level 3 securities are in respect of ICG-managed funds, Third Party Funds and Direct Investments. These are held at fair value and are calculated using valuations provided by the underlying manager of the investment and reviewed by ICG, with adjustments made to the statements to take account of cash flow events occurring after the date of the manager’s valuation, such as realisations or liquidity adjustments. A 30% increase/(decrease) in the value of these assets (including those assets held within subsidiary undertakings) would result in a rise and fall in NAV of £384.8m and £(380.0)m or 29.7% and (29.3)% respectively (31 January 2022: rise and fall in NAV of £319.4m and £331.0m respectively or 27.6% and (28.6%)).
The following table presents the changes in level 3 instruments for the periods to 31 July 2022 and 31 January 2022.
| Half year to 31 July 2022£’000 | Half year to 31 July 2021£’000 | |
| Opening Balance 1 February | 1,123,747 | 871,860 |
| Additions | 57,170 | 82,203 |
| Disposals | (18,183) | (85,911) |
| Gains and losses recognised in profit or loss | 135,319 | 148,085 |
| Closing balance | 1,298,053 | 1,016,237 |
GLOSSARY
Term
Short form
Definition
Alternative Performance Measures
APMs
Alternative Performance Measures are a term defined by the European Securities and Markets Authority as “financial measures of historical or future performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework”.
APMs are used in this report if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company and for comparing the performance of the Company to its peers, taking into account industry practice.
Definitions and reconciliations to IFRS measures are provided in the main body of the report or in this Glossary, where appropriate.
Carried interest
Carried interest is equivalent to a performance fee. This represents a share of the profits that will accrue to the underlying private equity managers, after achievement of an agreed Preferred Return.
Cash drag
Cash drag is the negative impact on performance arising as a result of the allocation of a portion of the entity’s assets to cash.
Co-investment
Co-investment is a Direct Investment in a company alongside a private equity fund.
Co-investment Incentive Scheme Accrual
Co-investment Incentive Scheme Accrual represents the estimated value of interests in the Co-investment Incentive Scheme operated by the subsidiary partnerships of the Company.
Commitment
Commitment represents the amount of capital that each investor agrees to contribute to a fund or a specific investment.
Deployment
Please see ‘Total new investment’.
Direct Investments
An investment in a portfolio company held directly, not through a private equity fund. Direct Investments are typically co-investments with a private equity fund.
Discount
Discount arises when the Company’s shares trade at a price below the Company’s NAV per Share. In this circumstance, the price that an investor pays or receives for a share would be less than the value attributable to it by reference to the underlying assets. The Discount is the difference between the share price and the NAV, expressed as a percentage of the NAV. For example, if the NAV was 100p and the share price was 90p, the Discount would be 10%.
Drawdowns
Drawdowns are amounts invested by the Company when called by underlying managers in respect of an existing Commitment.
EBITDA
Stands for earnings before interest, tax, depreciation and amortisation, which is a widely used performance measure in the private equity industry.
Enterprise Value
EV
Enterprise Value is the aggregate value of a company’s entire issued share capital and Net Debt.
Exclusion List
The Exclusion List defines the business activities which are excluded from investment.
FTSE All-Share Index Total Return
The change in the level of the FTSE All-Share Index, assuming that dividends are re- invested on the day that they are paid.
Full Exits
Full Exits are exit events (e.g., trade sale, sale by public offering, or sale to a financial buyer) following which the residual exposure to an underlying company is zero or immaterial; this does not include Fund Disposals. See ‘Fund Disposals’.
Fund Disposals
Fund Disposals are where the Company receives sales proceeds from the full or partial sale of a fund position within the secondary market.
General Partner
GP
The General Partner is the entity managing a private equity fund. This is commonly referred to as the manager.
Hedging
Hedging is an investment technique designed to offset a potential loss on one investment by purchasing a second investment that is expected to perform in the opposite way.
High Conviction Investments
High Conviction Investments comprise Direct Investments, as well as investments in ICG-managed funds and Secondary Investments.
Initial Public Offering
IPO
An Initial Public Offering is an offering by a company of its share capital to the public with a view to seeking an admission of its shares to a recognised stock exchange.
Internal Rate of
Return
IRR
Internal Rate of Return is a measure of the rate of return received by an investor in a fund. It is calculated from cash drawn from and returned to the investor, together with the residual value of the investment.
Investment Period
Investment Period is the period in which funds are able to make new investments under the terms of their fund agreements, typically up to five years after the initial Commitment.
Last Twelve Months
LTM
Last Twelve Months refers to the time frame of the immediately preceding 12 months in reference to a financial metricised to evaluate the Company’s performance.
Limited Partner
LP
The Limited Partner is an institution or individual who commits capital to a private equity fund established as a Limited Partnership. These funds are generally protected from legal actions and any losses beyond the original investment.
Limited Partnership
A Limited Partnership includes one or more General Partners, who have responsibility for managing the business of the partnership and have unlimited liability, and one or more Limited Partners, who do not participate in the operation of the partnership and whose liability is ordinarily capped at their capital and loan contribution to the partnership. In typical fund structures, the General Partner receives a priority share ahead of distributions to Limited Partners.
Net Asset Value
per Share
NAV per Share
Net Asset Value per Share is the value of the Company’s net assets attributable to one Ordinary share. It is calculated by dividing ‘shareholders’ funds’ by the total number of ordinary shares in issue. Shareholders’ funds are calculated by deducting current and long-term liabilities, and any provision for liabilities and charges, from the Company’s total assets.
Net Asset Value
per Share Total
Return
Net Asset Value per Share Total Return is the change in the Company’s Net Asset Value per Share, assuming that dividends are re- invested at the end of the quarter in which the dividend was paid.
Net Debt
Net Debt is calculated as the total short-term and long-term debt in a business, less cash and cash equivalents.
Ongoing Charges
Ongoing Charges are calculated in line with guidance issued by the Association of Investment Companies (‘AIC’) and capture management fees and expenses, excluding finance costs, incurred at the Company level only. The calculation does not include the expenses and management fees incurred by any underlying funds.
Other Net Liabilities
Other Net Liabilities at the aggregated Company level represent net other liabilities per the Company’s balance sheet. Net other liabilities per the balance sheet of the subsidiaries include amounts payable under the Co-investment Incentive Scheme Accrual.
Overcommitment
Overcommitment refers to where private equity fund investors make Commitments exceeding the amount of cash immediately available for investment. When determining the appropriate level of Overcommitment, careful consideration needs to be given to the rate at which Commitments might be drawn down, and the rate at which realisations will generate cash from the existing Portfolio to fund new investment.
Portfolio
Portfolio represents the aggregate of the investment Portfolios of the Company and of its subsidiary Limited Partnerships. This APM is consistent with the commentary in previous annual and interim reports. The Board and the Manager consider that disclosing our Portfolio assists shareholders in understanding the value and performance of the underlying investments selected by the Manager. It is shown before the Co-investment Incentive Scheme Accrual to avoid being distorted by certain funds and Direct Investments on which ICG Enterprise Trust Plc does not incur these costs (for example, on funds managed by ICG plc). Portfolio is related to the NAV, which is the value attributed to our shareholders, and which also incorporates the Co-investment Incentive Scheme Accrual as well as the value of cash and debt retained on our balance sheet.
The value of the Portfolio at 31 July 2022 is £1,353.7m (31 January 2022: £1,172.2m).
Portfolio (continued)
The closest equivalent amount reported on the balance sheet is ‘investments at fair value’. A reconciliation of these two measures along with other figures aggregated for the Company and its subsidiary Limited Partnerships is presented below:
| 31 July 2022 £m | IFRS Balance sheet fair value | Net assetsof subsidiarylimitedpartnerships | Co-investment Incentive Scheme Accrual | Total Company and subsidiary Limited Partnerships |
| Investments1 | 1,298.1 | (1.5) | 57.1 | 1,353.7 |
| Cash | 12.7 | - | - | 12.7 |
| Other Net Liabilities | (41.9) | 1.5 | (57.1) | (97.5) |
| Net assets | 1,268.9 | - | - | 1,268.9 |
| 31 January 2022 £m | IFRS Balance sheet fair value | Balances receivable from subsidiary Limited Partnerships | Co-investment Incentive Scheme Accrual | Total Company and subsidiary Limited Partnerships |
| Investments1 | 1,123.7 | (0.6) | 49.1 | 1,172.2 |
| Cash | 41.3 | - | - | 41.3 |
| Other Net Liabilities | (7.1) | 0.6 | (49.1) | (55.6) |
| Net assets | 1,157.9 | - | - | 1,157.9 |
1Investments as reported on the IFRS balance sheet at fair value comprise the total of assets held by the Company and the net asset value of the Company’s investments in the subsidiary Limited Partnerships.
Portfolio Return on a Local Currency Basis
Portfolio Return on a Local Currency Basis represents the change in the valuation of the Company’s Portfolio before the impact of currency movements and Co-investment Incentive Scheme Accrual. The Portfolio return of 7.4% is calculated as follows:
| £m | 31 July 2022 | 31 July 2021 |
| Income, gains and losses on Investments | 136.5 | 113.0 |
| Foreign exchange gains and losses included in gains and losses on investments | (60.6) | 20.4 |
| Incentive accrual valuation movement | 11.1 | 8.2 |
| Total gains on Portfolio investments excluding impact of foreign exchange | 87.0 | 141.6 |
| Opening Portfolio valuation | 1,172.2 | 949.2 |
| Portfolio Return on a Local Currency Basis | 7.4% | 14.9% |
Term
Short form
Definition
Portfolio Return on a Local Currency Basis
(continued)
A reconciliation between the Portfolio Return on Local Currency Basis and NAV per Share Total Return is disclosed under ‘Total Return’.
Portfolio Company
Portfolio Company refers to an individual company in an investment portfolio.
Preferred Return
Preferred Return is the preferential rate of return on an individual investment or a portfolio of investments, which is typically 8% per annum.
Premium
Premium occurs when the share price is higher than the NAV and investors would therefore be paying more than the value attributable to the shares by reference to the underlying assets.
Quoted Company
A Quoted Company is any company whose shares are listed or traded on a recognised stock exchange.
Realisation Proceeds
Realisation Proceeds are amounts received in respect of underlying realisation activity from the Portfolio and exclude any inflows from the sale of fund positions via the secondary market.
Realisations - Multiple to Cost
Realisations - Multiple to Cost is the average return from Full Exits from the Portfolio in the period on a primary investment basis, weighted by cost.
| £m | 31 July 2022 | 31 July 2021 |
| Realisation Proceeds from Full Exits in the year-to-date | 73.2 | 143.6 |
| Cost | 32.5 | 52.0 |
| Average return Multiple to Cost | 3.3x | 2.8x |
Realisations – Uplift To Carrying Value
Realisations – Uplift To Carrying Value is the aggregate uplift on Full exits from the Portfolio in the period excluding publicly listed companies that were exited via sell downs of their shares.
| £m | 31 July 2022 | 31 July 2021 |
| Realisation Proceeds from Full Exits in the year-to-date | 73.2 | 97.2 |
| Prior Carrying Value (at previous quarterly valuation prior to exit) | 58.5 | 77.2 |
| Realisations – Uplift To Carrying Value | 25.2% | 25.8% |
Secondary Investments
Secondary Investments occur when existing private equity fund interests and Commitments are purchased from an investor seeking liquidity.
Share Price Total Return
Share Price Total Return is the change in the Company’s share price, assuming that dividends are re-invested on the day that they are paid.
Total New Investment
Total New Investment is the total of direct Co-investment and fund investment Drawdowns in respect of the Portfolio. In accordance with IFRS 10, the Company’s subsidiaries are deemed to be investment entities and are included in subsidiary investments within the financial statements.
Movements in the cash flow statement within the financial statements reconcile to the movement in the Portfolio as follows:
| £m | 31 July 2022 | 31 July 2021 |
| Purchase of Portfolio investments per cash flow statement | 29.6 | 82.2 |
| Purchase of Portfolio investments within subsidiary investments | 114.1 | 51.1 |
| Total New Investment | 143.7 | 133.3 |
Total Proceeds
Total Proceeds are amounts received by the Company in respect of the Portfolio, which may be in the form of capital proceeds or income such as interest or dividends. In accordance with IFRS 10, the Company’s subsidiaries are deemed to be investment entities and are included in subsidiary investments within the financial statements.
| £m | 31 July 2022 | 31 July 2021 |
| Sale of Portfolio investments per cash flow statement | 18.2 | 122.0 |
| Sale of Portfolio investments, interest received, and dividends received within subsidiary investments | 87.1 | 55.0 |
| Interest income per cash flow statement | 1.3 | 3.3 |
| Dividend income per cash flow statement | 0.2 | 4.4 |
| Total Proceeds | 106.8 | 184.7 |
| Fund Disposals | - | 9.4 |
| Realisation Proceeds | 106.8 | 175.3 |
Total Return
Total Return is a performance measure that assumes the notional re-investment of dividends. This is a measure commonly used by the listed private equity sector and listed companies in general.
The table below sets out the share price and the Net Asset Value per Share growth figures for periods of one, three, five and ten years to the balance sheet date on an annualised Total Return basis:
| Total Return performance in years to 31 July 2022 (annualised) | 1 year | 3 years | 5 years | 10 years |
| Net Asset Value per Share | 24.2% | 18.6% | 16.9% | 14.5% |
| Share price | 10.0% | 12.8% | 12.2% | 14.4% |
| FTSE All-Share Index | 5.5% | 3.2% | 4.0% | 7.2% |
The table below shows the breakdown of the one-year Net Asset Value per Share Total Return for the period:
| Change in NAV (% of opening NAV) | 31 July 2022 | 31 July 2021 |
| Portfolio Return on a Local Currency Basis | 7.4% | 14.9% |
| Currency movements on the Portfolio | 5.0% | (2.1%) |
| Portfolio return in sterling | 12.4% | 12.8% |
| Impact of (net cash)/net debt | 0.2% | (0.0%) |
| Impact of net portfolio movement on net asset value | 12.6% | 12.8% |
| Expenses and other income | (0.9)% | (1.1%) |
| Incentive accrual valuation movement | (0.8)% | (0.8%) |
| Increase in Net Asset Value per Share before buy backs | 10.9% | 10.9% |
| Impact of share buy backs & dividend reinvestment | 0.0% | 0.2% |
| Net Asset Value per Share Total Return | 10.9% | 11.1% |
Undrawn Commitments
Undrawn Commitments are Commitments that have not yet been drawn down (please see ‘Drawdowns’).
Unquoted Company
An Unquoted Company is any company whose shares are not listed or traded on a recognised stock exchange.
Valuation Date
The date of the valuation report issued by the underlying manager.
Valuation Multiples
Valuation Multiples are earnings (EBITDA), or revenue multiples applied in determining the value of a business enterprise.
1 In the Chair’s Foreword, Manager’s Review and Supplementary Information, reference is made to the Portfolio. This is an APM.
Related Shares:
ICG Enterprise Trust