Intermediate Capital's (ICG) shares jumped 6 per cent on the day these full-year figures appeared after the asset manager and mezzanine finance specialist reported forecast-busting profits. Headline profits still fell sharply, though - reflecting slower realisations on equity investments and lower net interest income due to a decrease in the size of the lending portfolio. However, the outlook for the coming year is positive - and will include a £106m expected gain from selling an investment in animal tag specialist, Allflex.
On the investment side, net interest income fell £20m and, while there were significant write-backs in the second half, impairments still rose from £70.6m to £80m - so investment profits fell from £161.1m to £107.9m. However, new investments made during the year rose by £133.1m and the investment portfolio grew 15 per cent year-on-year to £2.7bn. Intermediate has been building up its asset management operation, too, and assets under management grew 13 per cent to £10.9bn. Within that, £8.68bn comprised third-party investments and the increase helped boost fee income by 10 per cent to £100.7m.
Numis Securities currently expects pre-tax profit of £177.1m for 2014, giving adjusted EPS of 31.9p (33.6p in 2013). But, as 2013's results substantially beat expectations, the broker anticipates a significant upgrade.
| INTERMEDIATE CAPITAL (ICP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 487p | MARKET VALUE: | £1.96bn | |
| TOUCH: | 486-487p | 12-MONTH HIGH: | 493p | LOW: 235p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 389p | NET DEBT: | 74% | |
| Year to 31 Mar | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2009 | -66.7 | -35.1 | 17.0 |
| 2010 | 106 | 25.0 | 17.0 |
| 2011 | 186 | 32.6 | 18.0 |
| 2012 | 244 | 47.7 | 19.0 |
| 2013 | 143 | 32.1 | 20.0 |
| % change | -41 | -33 | +5 |
Ex-div: 12 Jun Payment: 24 Jul | |||
