Intermediate Capital's interim profits driven up by capital gains
Updated : 14:29
Intermediate Capital Group said first half pre-tax profits rose to £126.2m from £93.9m, driven by a strong period of capital gains as it said it would implement a progressive dividend policy.
The FTSE 250-listed asset manager said fund management profits were up 17% to £34m, with third party fee income up 26%.
Total assets under management (AUM) rose 2% to €22bn, with €1.4bn of new money raised, third party fee earning AUM increased 5% to €16.5bn.
Investment company profit increased to £92.2m from £64.9m.
The interim dividend was up 4.2% to 7.5 pence per share in addition to the £200m special dividend paid in August 2016.
"Following the series of special dividends and the re-gearing of the balance sheet, we are now delivering good returns for our shareholders. The Board has commenced a review to determine a progressive dividend policy that will better link our ordinary dividends to our robust business model," Intermediate said.
“There remains significant potential to expand our portfolio of strategies and thereby further grow our fund management franchise."
“Our balance sheet is a facilitator of this organic growth as we use our capital to demonstrate proof of concept and seed new funds. At present we see plenty of opportunities to expand existing strategies into new geographies and add complementary strategies to the portfolio.”
“The current pace of fundraising is expected to continue for the remainder of the financial year as we continue raising money for our newer strategies. Our continued ability to access attractive investment opportunities means that some of our more established strategies are investing well and could be back fundraising during the next financial year.”
“ICG now has a more diversified business than at any point in our history. As such, we are well placed to manage, and indeed take advantage of opportunities arising from the attractiveness of the alternative asset market, as well as the uncertainties arising from the UK's vote to leave the European Union.”