TIDMFSG
RNS Number : 4829P
Foresight Group Holdings Limited
10 October 2023
LEI: 213800NNT42FFIZB1T09
10 October 2023
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. FOR IMMEDIATE
RELEASE
Trading update for the six months ended 30 September 2023
Diversified and resilient business model continues to deliver
profitable growth
Foresight Group Holdings Limited ("Foresight", the "Group"), a
sustainability-led infrastructure and private equity investment
manager, is pleased to announce its trading update for the six
months ended 30 September 2023 ("H1 FY24", the "period").
Financial and Operational Highlights (1)
-- Core EBITDA pre-Share Based Payments ("SBP") anticipated to be 20-25%
ahead of the prior year period, driven by:
-- Successful prior year and year-to-date fundraising into higher
margin and longer tenure vehicles
-- Annualisation of FY23 acquisition activity
-- Maintenance of firm cost discipline in an inflationary environment
-- Assets under Management ("AUM") and Funds under Management ("FUM")
were GBP12.1 billion (2) and GBP8.8 billion, marginally down 1% and
3% respectively in the six months to 30 September 2023 (FY23: GBP12.2
billion and GBP9.0 billion). On a constant currency basis, AUM remained
at GBP12.2 billion (3) in the period with FUM at GBP8.8 billion (3)
-- GBP159 million was raised into higher margin retail vehicles
-- The private equity division achieved further success in institutional
fundraising through a GBP30 million third close of the Foresight
North East Fund, with the division having a promising pipeline
of new fund mandates and additional further fund closes
-- With rising interest rates continuing to impact the valuation
of long duration infrastructure assets in the period, Foresight
Capital Management ("FCM") AUM decreased by GBP350 million,
including inflows of GBP170 million offset by outflows of
GBP377 million
-- High quality revenue visibility maintained, with recurring revenue
within our target range of 85-90%
-- Investment opportunities within our key markets grew strongly during
the period (4,5) with our total future deployment pipeline in international
infrastructure now exceeding GBP5 billion
-- Expanded the international reach of our FCM strategies by signing
a new distribution partnership covering the Nordic region, building
upon our existing US partnership. In addition, we have created a
newly resourced specialist OEIC UK sales team with FCM products as
its sole focus
Outlook
In comparison to retail fundraising, the market for
institutional fundraising remains challenging and this has
necessarily slowed the pace but not the size or scope of our
institutional fundraising activities. Indications are that this
should start to improve in the first half of 2024.
Our diversified business model leverages both organic and
inorganic growth through acquisitions, including a number of high
quality institutional strategies in pre marketing alongside
continuous retail fundraising. We remain confident in continuing
our strong track record of core EBITDA pre-SBP growth, alongside
our stated target AUM growth rate of 20-25% per annum on a rolling
3-year average basis.
Bernard Fairman, Executive Chairman of Foresight Group Holdings
Limited, commented:
"Over the last six months we have seen strong inflows into
higher margin retail vehicles and successful institutional
fundraising in our private equity business.
We have also seen continuing growth in our substantial
international infrastructure deployment pipeline which reflects the
very significant investment opportunities created by the worldwide
energy transition. I believe that the green energy transition is
the biggest investment opportunity of our generation and will shape
all our lives for years to come. Foresight's considerable
experience in sustainability-led investment ideally positions us to
capitalise on this exceptional opportunity and create significant
value for all our stakeholders."
Notes:
1. Please note that all figures contained in this announcement
are unaudited and subject to change.
2. Divisional AUM movement:
(GBP billion) H1 FY24 FY23 Change %
Infrastructure 9.7 9.5 +3%
------- ---- --------
Private Equity 1.4 1.4 +1%
------- ---- --------
FCM 1.0 1.3 (27)%
------- ---- --------
3. Group AUM and FUM movement summary on a constant currency basis:
Actuals Constant currency basis
--------------
(GBP billion) 30 Sep 2023 31 March Change % 30 Sep 2023 Change %
2023
----------- -------- -------- -------------- ---------
AUM 12.1 12.2 (1)% 12.2 0%
FUM 8.8 9.0 (3)% 8.8 (2)%
----------- -------- -------- -------------- ---------
4. Infrastructure divisional deployment:
H1 FY24 H1 FY23
-----------------------
Transactions completed 14 24
------- -------
Value (GBPm) 128 539
------- -------
New future deployment
rights (GBPm)* 519 409
------- -------
Total (GBPm) 647 948
------- -------
* New future deployment rights associated with transactions
completed during the period.
5. Private equity divisional deployment:
H1 FY24 H1 FY23
-----------------------
Equity
Transactions completed 32 31
------- -------
Value (GBPm) 51 46
------- -------
Secured lending
Value (GBPm) 50 40
------- -------
Interim Results Announcement
Foresight's Interim Results to 30 September 2023 are scheduled
to be released on 30 November 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 / Ben McGrory Caroline Merrell / Toby Moore
+44 (0) 7966 966956 / +44 (0) +44 (0) 7852 210329 / +44 (0) 7768
7443 821577 981763
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 400 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.
Foresight operates in eight countries across Europe, Australia
and United States with AUM of GBP12.1 billion (*) . Foresight Group
Holdings Limited listed on the Main Market of the London Stock
Exchange in February 2021 and is a constituent of the FTSE250
index. https://www.foresightgroup.eu/shareholders
(*) Based on unaudited AUM as at 30 September 2023.
Disclaimer - Forward-looking statements
This announcement, prepared by Foresight Group Holdings Limited
(the "Company"), may contain forward-looking statements about the
Company. 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 2023. 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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