TIDMFSG
RNS Number : 1260O
Foresight Group Holdings Limited
06 October 2021
6 October 2021
Foresight Group Holdings Limited
Trading Update for the six months to 30 September 2021
Foresight Group Holdings Limited ("Foresight"), a listed
infrastructure and private equity manager group, provides a trading
update for the six months to 30 September 2021.
Highlights
-- Strong growth in Assets under Management ("AUM") with estimated
AUM of GBP8.1 billion and Funds under Management ("FUM")
of GBP6.0 billion at 30 September 2021, equating to an annualized
growth rate of 25% and 34% respectively in the period
-- Retail net inflows during the six-month period were back
to similar levels seen in the six-month period pre-pandemic,
which gives the Board further confidence for the outlook
for FY2022
-- Strong capital deployment across our core business areas
of infrastructure and private equity with GBP295 million
deployed during the period compared with GBP206 million for
the same six-month period last year
-- Successful final close of Foresight Energy Infrastructure
Partners ("FEIP"), with total commitments of EUR 851 million
secured, 70% ahead of original target
-- Listing of Foresight's sustainable forestry business scheduled
for November 2021 with progress being made on several other
new fund launches
-- Group Revenue and Core EBITDA expectations for the full year
to 31 March 2022 are unchanged
Bernard Fairman, Executive Chairman of Foresight Group Holdings
Limited, commented:
"The last six months have continued to build on the positive
momentum we have seen since Foresight's listing in February. We
have experienced substantial growth in FUM as a result of strong
retail net inflows plus further institutional fund closes and
together with the near-term pipeline of new fund launches and
deployment, this gives the Board confidence in achieving the
Group's full year FY2022 targets.
The current volatility in power pricing in the UK and beyond has
provided some positive momentum for Foresight's balanced portfolio
of infrastructure assets. More broadly it highlights the need for
further acceleration of the transition to a reliable, resilient and
low carbon energy system, a space in which Foresight has
established itself as a leader. Foresight owns and operates c.
GBP4.0 billion of electricity generating assets. Much of the
production is either fixed price income from renewable obligation
certificates or sold forward at fixed prices. However, c. 15% is
benefitting from the near quadrupling of electricity prices with a
further c. 25% likely to similarly benefit as their fixes expire
during the next two years, should electricity prices remain
elevated. Electricity generating assets are valued using third
party power curves which continue to maintain that electricity will
revert to its long-term average of GBP40-GBP50 per megawatt hour
after about a year. The current market dynamics provide potential
significant upside to these curves, which would benefit Foresight
over the medium term.
At the upcoming COP26 event, we expect world leaders to announce
new targets aimed at tackling climate change. These targets should
provide even more impetus to our strategy and business model and
will further underpin Foresight's considerable growth
potential."
Trading update
Foresight reports estimated AUM at 30 September 2021 of GBP8.1
billion (31 March 2021: GBP7.2 billion), an annualized increase of
25% in the six-month period, achieved purely through organic
growth.
Net inflows totalled c. GBP0.8 billion, with strong retail
inflows, especially from the tax-based products, accompanied by
closes from several institutional funds. Prospects for future
institutional fundraising also remain positive with several funds
expected to announce further fund raises during the second half of
FY2022.
Operational margins remain robust with Revenue and Core EBITDA
in line with Group expectations. Recurring revenues at 30 September
2021 remain in line with the target range of 85%-90%.
Fund updates
During the period, we closed FEIP, our fund aimed at backing
second generation green energy investments, at a level that was 70%
ahead of our original target. The EUR 851 million raised is further
evidence of Foresight's enhanced international profile and of
increasing investor appetite to back innovations that will
accelerate the shift to a decarbonised world.
Within private equity, we announced the first close of our
Foresight Regional Investment III LP fund at GBP65 million. The
Fund is cornerstoned by the Greater Manchester Pension Fund, with
strong support from Clwyd and Merseyside Pension Funds.
In terms of the new areas of development beyond green energy
that we outlined at IPO, the planned listing of our sustainable
forestry assets later this year combines our expertise in providing
sustainable investment opportunities and attractive returns - it is
very much a fund of its time.
Strong capital deployment
Our investment teams have continued to deploy capital into new
and existing investments. In total, GBP295 million was deployed
during the six months to 30 September 2021, with the Infrastructure
team deploying capital into 25 projects globally and the Private
Equity team deploying capital into 26 UK businesses across a wide
variety of sectors.
Interim Results announcement
Foresights' Interim Results to 30 September 2021 are scheduled
to be released on 9 December 2021. Details of the results
presentation to analysts will be announced in due course.
Interim Dividend Timetable
As indicated in the IPO prospectus, the Board intends to pay one
third of the total dividend payment for the year as an interim
dividend, with two thirds being paid by way of a final
dividend.
The expected timetable in relation to the Interim Dividend is as
follows:
Ex-Dividend 10 March 2022
Date
Record Date 11 March 2022
Payment Date 25 March 2022
Please note that figures contained in this announcement are
unaudited and subject to change.
About Foresight Group
Foresight Group was founded in 1984 and is a leading
infrastructure and private equity investment manager. With a
long-established focus on ESG and sustainability-led strategies, it
aims to provide attractive returns to its institutional and private
investors from hard-to-access private markets. Foresight Group
manages over 300 infrastructure assets with a focus on solar and
onshore wind assets, bioenergy and waste, as well as renewable
energy enabling projects, energy efficiency management solutions,
social and core infrastructure projects and sustainable forestry
assets. Its private equity team manages eight regionally focused
investment funds across the UK, supporting over 120 SMEs. Foresight
Group operates from 12 offices across six countries in Europe and
Australia with AUM of c. GBP8.1 billion as at 30 September 2021.
Foresight Group Holdings Limited listed on the Main Market of the
London Stock Exchange in February 2021.
https://www.fsg-investors.com/
Enquiries:
Foresight Group
Jo Nicolle IR@foresightgroup.eu / +44 7790 804 263
Citigate Dewe Rogerson (Public relations adviser to Foresight
Group)
Caroline Merrell caroline.merrell@citigatedewerogerson.com
/ +44 7852 210 329
Toby Moore toby.moore@citigatedewerogerson.com /
+44 7768 981 763
Corporate Brokers
Jefferies +44 (0) 20 7029 8000
Paul Nicholls
Graham Davidson
Lee Morton
Max Jones
Numis +44 (0) 20 7260 1000
Stephen Westgate
Charlie Farquhar
Laura White
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END
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