Adjusted pre-tax profit at asset manager and mezzanine finance specialist Intermediate Capital (ICP) rose by a solid enough 18 per cent to £175m for the year to 31 March. But some brokers had been anticipating better. Numis Securities expected a figure nearer £248m, and the group's shares slipped 2 per cent on the day these full-year figures were released.
Healthier market conditions boosted realisations from the group's equity portfolio, and gains from investments more than doubled in the period to £149m. Exiting its investment in Applus this month, for example, netted proceeds of €163m (£133m), compared to an original €118m investment (though Numis had been hoping for more).
The group's cost base rose 17 per cent in the period, too, partly due to headcount growth. And a 41 per cent hike in the impairment charge to £112m also hurt. Total assets under management were effectively flat at €13bn. Realisations reduced the size of the portfolio by nearly a quarter, but that was offset by a record €3.8bn of funds raised - 69 per cent higher than the group's previous fund-raising best.
Numis currently expects EPS of 41.8p (from 39.9p in 2013) for the current financial year, but thinks downgrades are possible.
INTERMEDIATE CAPITAL (ICP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 419p | MARKET VALUE: | £1.69bn | |
| TOUCH: | 419-419.1p | 12-MONTH HIGH: | 506p | LOW: 406p |
| DIVIDEND YIELD: | 5.0% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 375p | NET DEBT: | 39% | |
| Year to 31 Mar | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2010 | 106 | 25 | 17 |
| 2011 | 186 | 32.6 | 18 |
| 2012 | 244 | 47.7 | 19 |
| 2013 | 143 | 32.1 | 20 |
| 2014 | 159 | 35.7 | 21 |
| % change | +11 | +11 | +5 |
Ex-div: 11 Jun Payment: 28 Jul | |||
