TIDMFSG
RNS Number : 0406W
Foresight Group Holdings Limited
13 April 2023
LEI: 213800NNT42FFIZB1T09
13 April 2023
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. FOR IMMEDIATE
RELEASE
Trading update for the financial year ended 31 March 2023
Diversified and resilient business model delivers record year of
profitability and AUM growth
Foresight Group Holdings Limited ("Foresight", the "Group"), a
sustainability-led infrastructure and private equity investment
manager, is pleased to announce a trading update for the financial
year ended 31 March 2023 ("FY23", "the period").
Financial Highlights
-- Continued to deliver highly profitable growth
-- Strengthening previously guided 8 - 10% upgrade on FY23
core EBITDA pre-Share Based Payments ("SBP")(2) to the
top end of this range
-- Continued profitable realisations generating performance
fees across the business
-- In the three months to 31 March 2023 ("Q4 FY23"), our
diversified business model raised funds of GBP151 million
into retail and private equity vehicles (excluding Foresight
Capital Management ("FCM")) which benefit from higher
revenue margin and longer tenure
-- In Q4 FY23, net FCM outflows totalled GBP(69) million
-- Exceptional increase in Assets under Management ("AUM") and
Funds under Management ("FUM") in FY23 of 37% and 34% to GBP12.2
billion and GBP9.0 billion respectively (3) (FY22: GBP8.8 billion
AUM and GBP6.7 billion FUM), well in excess of our target
-- On a constant currency basis, removing adverse foreign
exchange movements largely attributable to our Australian
assets, FY23 growth increases to 40% and 36%
-- In Q4 FY23, the decrease in AUM of (1)% was principally
driven by the adverse foreign exchange movement of GBP(120)
million
-- With a strong pipeline of organic fundraising scheduled
for FY24, we reiterate our target AUM growth rate of 20-25%
per annum on a rolling 3-year average basis
-- Revenue significantly up on the prior year and is anticipated
to be ahead of latest consensus(4) . Recurring revenue for the
period is expected to be within our target range of 85 - 90%,
further demonstrating our predictable long-term revenue model
Operational Highlights
Infrastructure
In FY23, infrastructure division AUM increased by 50% to GBP9.5
billion (FY22: GBP6.3 billion):
-- The transformational acquisition of Infrastructure Capital Group
in September 2022 added c.GBP3.0 billion to AUM, and it has
now been fully integrated and rebranded as Foresight Australia
-- AUM growth was supported by organic fundraising across retail
and institutional vehicles, including GBP41 million (5) of committed
capital raised by the Australian Renewables Income Fund ("ARIF")
in Q4 FY23, with additional fundraising targeted in FY24
Capital deployment remained strong in Q4 FY23. This contributed
to record deployment levels in FY23 of GBP686 million, rising to
GBP2,339 million when including future deployment rights of
GBP1,653 million:
Deployment Q4 FY23 FY23 FY22
Transactions completed 16 54 41
------- ----- ----
Value (GBP million) 103 686 484
------- ----- ----
Future deployment rights(6)
(GBP million) 923 1,653 427
------- ----- ----
Total (GBP million) 1,026 2,339 911
------- ----- ----
Private Equity
In FY23, the private equity division delivered its strongest
year to date with significant AUM growth of 52% to GBP1.4 billion
(FY22: GBP0.9 billion):
-- Excellent institutional inflows were driven by successful
first closes of four new funds (+GBP132 million) with additional
commitments to existing and new institutional funds totalling
GBP39 million
-- FY23 inflows into retail vehicles of GBP115 million
-- The successful acquisition and integration of the technology
ventures division of Downing LLP substantially increased
Foresight's existing ventures offering and added GBP275
million of AUM
Throughout the year, the division demonstrated its capabilities
in sourcing and completing investments and delivering strong exits
despite the volatility in the economic environment:
-- Capital deployed during FY23 was GBP99 million (FY22: GBP81 million)
across 69 equity transactions (FY22: 53) and GBP71 million across
secured lending investments (FY22: GBP47 million)
-- Numerous successful exits including the recent exits in Q4 FY23
of portfolio companies Datapath (11.7x), Gov Grant (4.5x) and
Mowgli (3.5x)
Foresight Capital Management
In FY23, FCM AUM reduced by 19% to GBP1.3 billion (FY22: GBP1.6
billion):
-- This movement reflects net outflows of GBP(97) million and market
performance of GBP(183) million, against a backdrop of significant
volatility in global equity markets, with high inflation leading
central banks to tighten monetary policy by increasing interest
rates at an unprecedented pace
-- FCM's strategies are well placed to return to growth, with underlying
sectors (in particular sustainability, decarbonisation and infrastructure
renewables) expected to benefit from the long-term structural
tailwinds
In Q4 FY23, FCM expanded the Group's geographic footprint into
the US market through its appointment as sub-adviser to the
Cromwell Foresight Global Sustainable Infrastructure Fund. We
believe that growth opportunities in the US offer the potential
over the long term to exceed FCM's current businesses. In addition,
the division is actively pursuing further distribution
opportunities, with Europe being a key focus in the near term.
Bernard Fairman, Executive Chairman of Foresight Group Holdings
Limited, commented:
"This was an outstanding year for the Group, with our
diversified and resilient business model achieving exceptional
results against a challenging market backdrop. This included
significantly growing our geographic footprint through the
transformational acquisition of Infrastructure Capital Group in
Australia and our FCM division expanding into the US sub-advisory
market.
The outlook for the Group remains very positive, being ideally
positioned to capture the long-term structural growth trends in our
key markets. Our focus in FY24 will be organic growth, with a
strong infrastructure fundraising pipeline that includes
established strategies such as ARIF and Foresight Energy
Infrastructure Partners returning to the market, supported by new
opportunities including core European renewables and our planned
expansion into adjacent asset classes, such as hydrogen. FY24
profit will also reflect the full 12-month benefit of our growth in
FY23, including the organic growth of our private equity division
and our significant acquisition activity. In addition, we expect
the likely fall in inflation to increase the value of the long
duration renewable energy assets within the FCM portfolio as
discount rates fall.
We have confidence in our ability to continue our excellent
track record of profitable growth and delivering against our
strategic and financial priorities."
Notes:
1. Please note that all figures contained in this announcement
are unaudited and subject to change.
2. Guidance provided as part of the trading update for the three
months to 31 December 2022, which was based on consensus core
EBITDA pre-SBP of GBP44.8 million as at 6 December 2022.
3. AUM and FUM movement summary:
Last 3 months Last 12 months
-------------- -----------
(GBP billion) 31 Mar 2023 31 Dec 2022 Change % 31 Mar 2022 Change %
----------- ----------- -------- ----------- --------
AUM 12.2 12.3 (1)% 8.8 + 37%
FUM 9.0 9.0 0% 6.7 + 34%
----------- ----------- -------- ----------- --------
4. Based on consensus revenue of GBP116.6 million as at 16 January
2023.
5. A$75 million, converted from AUD to GBP at an exchange rate
of 0.5424.
6. Subject to certain conditions being met.
FY23 Results Announcement
Foresight's Full Year Results to 31 March 2023 are scheduled to
be released on Tuesday 4 July 2023, with a presentation for
analysts on the same day. Details on how to attend the presentation
will be available on https://www.foresightgroup.eu/shareholders in
due course.
Foresight Group Investors Citigate Dewe Rogerson
Liz Scorer Caroline Merrell / Toby Moore
+44 (0) 7852 210329 / +44 (0) 7768
981763
+44 (0) 7966 966956 caroline.merrell@citigatedewerogerson.com
ir@foresightgroup.eu /
toby.moore@citigatedewerogerson.com
About Foresight Group Holdings Limited
Foresight Group was founded in 1984 and is a leading listed
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 manages
over 350 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 eleven regionally focused
investment funds across the UK and an SME impact fund supporting
Irish SMEs. This team reviews over 2,500 business plans each year
and currently supports more than 250 investments in SMEs. Foresight
Capital Management manages four strategies across seven investment
vehicles with an AUM of GBP1.3 billion.
Foresight operates in eight countries across Europe, Australia
and United States with AUM of GBP12.2 billion*. Foresight Group
Holdings Limited listed on the Main Market of the London Stock
Exchange in February 2021.
https://www.foresightgroup.eu/shareholders
*Based on Foresight Group unaudited AUM as at 31 March 2023.
Disclaimer - Forward-looking statements
This announcement, prepared by Foresight Group Holdings Limited
(the "Company"), may contain forward-looking statements about the
Company and its subsidiaries (the "Group"). Such forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "projects",
"estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology. Forward-looking statements
involve known and unknown risks, uncertainties, assumptions and
other factors which are beyond the Company's control and are based
on the Company's beliefs and expectations about future events as of
the date the statements are made. If the assumptions on which the
Company bases its forward-looking statements change, actual results
may differ from those expressed in such statements. There are a
number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these
forward-looking statements, including those set out under
"Principal Risks" in the Company's annual report for the financial
year ended 31 March 2022. The annual report can be found on the
Company's website (https://www.foresightgroup.eu/). Forward-looking
statements speak only as of the date they are made. Except as
required by applicable law and regulation, the Company undertakes
no obligation to update these forward-looking statements. Nothing
in this announcement should be construed as a profit forecast.
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END
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