- Big upgrade in future third-party fundraising forecasts
- Gearing falls, as dividend rises
Shares in alternative asset manager Intermediate Capital (ICP) climbed 6 per cent on Tuesday after full-year results smashed analyst forecasts and the FTSE 100 group upgraded its third-party fundraising guidance to $40bn (£28bn) over the next four years.
A year ago, we suggested the decade-long shift in the business model from leveraged debt investor to co-investing asset manager offered confidence in ICG’s resilience to the pandemic – at least compared with its disastrous track record during the global financial crisis.
Fundraising of $10.6bn in the 12 months to March – in what was supposedly an “off-cycle year” for attracting investor capital – was 5 per cent up on FY2020, but 72 per cent ahead of consensus forecasts, according to broker Jefferies.
City estimates for earnings of 104.6p per share for FY2022 therefore look set to lift, as Intermediate Capital continues to push on an open door for the supply and demand of non-bank financing. Speculative buy.
Last IC View: Hold, 1,675p, 17 Nov 2020
| INTERMEDIATE CAPITAL (ICP) | ||||
| ORD PRICE: | 2,319p | MARKET VALUE: | £6.7bn | |
| TOUCH: | 2,269-2,271p | 12-MONTH HIGH: | 2,319p | LOW: 1,128p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 557p* | NET DEBT: | 63% | |
| Year to 31 Mar | Fee & operating income (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 134 | 252 | 74.5 | 27 |
| 2018 | 157 | 199 | 88.8 | 30 |
| 2019 | 213 | 183 | 63.4 | 45 |
| 2020 | 266 | 115 | 38.2 | 50.8 |
| 2021 | 331 | 510 | 160 | 56 |
| % change | +24 | +345 | +320 | +10 |
| Ex-div: | 17 Jun | |||
| Payment: | 5 Aug | |||
