A record period of fundraising by Intermediate Capital (ICP) had investors excited at the prospect of these first-half results. Its largest single strategy Senior Debt Partners closed its third vintage, raising €4.2bn (£3.8bn) and pushing total third-party funds raised to €5.7bn. This bodes well not only for this year, but management also expects to meet or exceed its long-term fundraising target in 2019.
The Senior Debt Partners strategy increased its assets under management by more than three-quarters during the period, with the additional scale allowing it to broaden its investments into North American companies. Group assets under management were up 14 per cent year on year to €27.2bn.
Headline profits were dented as income from its balance sheet investments reduced by around a third. However, profits from its fund management company were up by almost a third to £44m. Total third-party assets under management increased 16 per cent during the period, as the popularity of alternative assets continued among yield-hungry institutional investors. However, the benefit of this increase will only feed through into fee income as it is invested, minimising the short-term impact.
Analysts at JPMorgan expect adjusted pre-tax profit of £175m for the 12 months to the end of September 2018, giving EPS of 58.9p (from £236m and 69.6p in 2017).
| INTERMEDIATE CAPITAL (ICP) | ||||
| ORD PRICE: | 1,006p | MARKET VALUE: | £2.85bn | |
| TOUCH: | 1,005-1,007p | 12-MONTH HIGH: | 1,037p | LOW: 620p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 420p | NET DEBT: | 80% | |
| Half-year to 30 Sept | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 299 | 126 | 37.4 | 7.5 |
| 2017 | 285 | 95.5 | 33.1 | 9 |
| % change | -5 | -24 | -11 | +20 |
| Ex-div: | 7 Sep | |||
| Payment: | 12 Jan |
