Statutory numbers in the table below tell us very little about current trading at Intermediate Capital (ICP), which continues to match thirsty investor appetite for alternative assets with strong capital demand from underfunded small- and mid-sized companies.
Inflows have serious momentum. After raising its annual fundraising target to €6bn (£5.28bn) just over a year ago, the specialist asset manager attracted €10bn to its investment strategies in the year to March, thanks to a flurry of appetite for its open-ended credit fund in the fourth quarter.
Across all the strategies, strong fund growth has not had an impact on the weighted average fee rate, which was flat at 86 basis points. As a result, fund management company profits grew by half to £144m. What’s more, average rates will soon be lifted by a new €1bn mid-market fund, to which €0.6bn has already been committed, and which charges 1.3 percentage points. An operating profit margin target of 43 per cent is under review, and is expected to increase.
Broker Numis, which following these results expects to upgrade its forecasts, currently predicts pre-tax profits of £237m and earnings per share of 83.2p for the year to March 2020 (FY2021: £239m and 84p).
| INTERMEDIATE CAPITAL (ICP) | ||||
| ORD PRICE: | 1,297p | MARKET VALUE: | £3.77bn | |
| TOUCH: | 1,296-1,297p | 12-MONTH HIGH: | 1,300p | LOW: 896p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 476p | NET DEBT: | 73% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 426 | 179 | 50.3 | 22 |
| 2016 | 449 | 159 | 41.9 | 23 |
| 2017 | 625 | 252 | 74.5 | 27 |
| 2018 | 600 | 199 | 88.8 | 30 |
| 2019 | 464 | 183 | 63.4 | 45 |
| % change | -23 | -8 | -29 | +50 |
| Ex-div: | 13 Jun | |||
| Payment: | 6 Aug |
