TIDMFSG
RNS Number : 1365V
Foresight Group Holdings Limited
30 November 2023
LEI: 213800NNT42FFIZB1T09
30 November 2023
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DISTRIBUTION OR RELEASE OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. FOR IMMEDIATE
RELEASE
Half-year results 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 results for the six months
ended 30 September 2023 ("H1 FY24", the "period").
Financial and Operational Highlights (1)
-- Strong growth in Core EBITDA pre-Share Based Payments ("SBP"),
up 28% on the prior year period to GBP27.6 million (H1 FY23: GBP21.5
million), 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") marginally up at GBP12.2 billion
(2) in the six months to 30 September 2023 with Funds under Management
("FUM") slightly lower at GBP8.8 billion (FY23: GBP12.2 billion
and GBP9.0 billion). On a constant currency basis, AUM increased
to GBP12.4 billion(3) in the period with FUM at GBP8.9 billion
(3)
-- GBP247 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 rising interest rates continuing to impact the valuation
of long duration infrastructure assets in the period, Foresight
Capital Management ("FCM") AUM decreased by GBP348 million, including
net outflows of GBP207 million
-- The Board is pleased to extend the strong and growing dividend
track record with an interim dividend of 6.7 pence per share (H1
FY23: 4.6 pence). This is in line with the Group's dividend policy
which targets a total dividend payout ratio of 60% of profit after
tax before non -- underlying items
-- The interim dividend will be paid on 26 January 2024, with an
ex-dividend date of 11 January 2024 and a record date of 12 January
2024
-- High quality revenue was maintained in the period with recurring
revenue of 87%, within our target range of 85-90%
-- Investment opportunities within our key markets remained strong
(4,5) with the total pipeline of future deployment rights in international
infrastructure now exceeding GBP5 billion
-- Expanded the international reach of our FCM strategies by signing
a strategic agreement to support distribution across the Nordic
region, in addition to our existing US partnership. A newly resourced
specialist OEIC UK sales team has also been created, with FCM products
as its sole focus
Key Financial Metrics
30 September 31 March 2023 Change
2023
-------------------------------- ------------ ------------- --------
Period-end AUM (GBPm) 12,245 12,167 +1%
Period-end FUM (GBPm) 8,830 9,022 -2%
-------------------------------- ------------ ------------- --------
30 September 30 September Change
2023 2022
-------------------------------- ------------ ------------- --------
Total Revenue (GBPm) 67.8 50.7 +34%
Recurring Revenue (% of Total) 87.3% 89.4% -2.1 pts
Core EBITDA pre-SBP (GBPm) 27.6 21.5 +28%
Core EBITDA pre-SBP margin (%) 40.7% 42.4% -1.7 pts
Basic earnings per share before
non-underlying items (pence) 16.0p 14.4p +11%
Dividend per Share (pence) 6.7p 4.6p +46%
-------------------------------- ------------ ------------- --------
Post period end and outlook
Post period end, we have seen further success within our Private
Equity division, delivering performance fees of GBP1.9 million and
an expansion in its regional strategy with the launch of two new
institutional funds. This included one fund that achieved a GBP50
million first close to invest in opportunities across Wales, and a
second which increased the capital available to our existing
Northern Irish strategies.
Based on pre marketing discussions, we believe that the
currently challenging environment for institutional fundraising in
infrastructure should start to improve in the first half of 2024.
During this timeframe, our focus will be on fundraising for our
existing FEIP and ARIF strategies, as well as the launch of a first
hydrogen strategy for the Group.
Our diversified business model leverages both organic and
inorganic growth through targeted institutional fundraising,
continuous retail fundraising and acquisitions. With this
combination of levers, 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:
"With Core EBITDA pre-SBP up by 28% and AUM at GBP12.2 billion,
Foresight's diversified business model has successfully delivered a
strong and resilient performance, during one of the steepest
increases in interest rates in living memory. We are well
positioned to benefit from interest rate stabilisation and
normalisation.
The energy transition is the largest investment opportunity of
our generation. Foresight is ideally placed to realise this
opportunity through our multiple international strategies and
extensive track record of raising capital to invest in sustainable
infrastructure.
On the back of this resilient performance and our strong
pipeline of opportunities, we remain confident in Foresight's
ability to deliver on our strategic targets and to continue to
deliver profitable growth and shareholder value."
Notes:
1. Please note that all figures contained in this announcement are unaudited.
2. Divisional AUM movement:
(GBP billion) H1 FY24 FY23 Change %
Infrastructure 9.8 9.5 +4%
------- ---- --------
Private Equity 1.4 1.4 +2%
------- ---- --------
FCM 1.0 1.3 (27)%
------- ---- --------
3. Group AUM and FUM movement summary on a constant currency basis:
Actuals Constant currency basis
--------------
31 March
(GBP billion) 30 Sep 2023 2023 Change % 30 Sep 2023 Change %
----------- -------- -------- -------------- ---------
AUM 12.2 12.2 1% 12.4 2%
FUM 8.8 9.0 (2)% 8.9 (1)%
----------- -------- -------- -------------- ---------
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 39 31
------- -------
Value (GBPm) 51 49
------- -------
Secured lending
Value (GBPm) 47 40
------- -------
Half-year Report
A copy of the H1 FY24 Half-year Report has been submitted to the
National Storage Mechanism and will shortly be available at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
The Half-year Report will also be available on the Company's
website at
https://www.foresightgroup.eu/shareholders where further
information on Foresight can be found.
Interim Results Announcement
A pre-recorded presentation will be available to view on the
Company's website
( https://www.foresightgroup.eu/shareholders ) on 30 November
2023.
This presentation will be played at the start of a webcast from
9.00 a.m. (UK time) on Thursday 30 November 2023 and be followed by
live Q&A for analysts hosted by Gary Fraser (CFO). Those
wishing to join the webcast should register via the following link:
Register here
Retail Investor Presentation via Investor Meet Company
Foresight will also provide a live presentation via Investor
Meet Company on Monday 4 December 2023 at 11.30 a.m. BST. The
presentation is open to all existing and potential shareholders and
will be hosted by Gary Fraser (CFO). Questions can be submitted
pre-event via your Investor Meet Company dashboard up until 9.00
a.m. the day before the meeting or at any time during the live
presentation.
Investors can sign up to Investor Meet Company for free and
register to meet Foresight via:
https://www.investormeetcompany.com/foresight-group-holdings-limited/register-investor
Investors who already follow Foresight on the Investor Meet
Company platform will automatically be invited.
Foresight Group Investors Citigate Dewe Rogerson
Liz Scorer / Ben McGrory Caroline Merrell / Toby Moore
+44 (0) 7852 210329 / +44 (0) 7768
981763
+44 (0) 7966 966956 / +44 (0) 7443 821577 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 an extensive footprint of
regionally focused investment funds across the UK and Ireland. This
team reviews over 3,000 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 GBP12.2 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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END
IR BLBBTMTMTTRJ
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