REG - Foresight Group Hldg - Foresight Group Holdings Limited Half-year results

Foresight groupAnnouncement

30/11/2023 07:15

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RNS Number : 1365V  Foresight Group Holdings Limited  30 November 2023

LEI: 213800NNT42FFIZB1T09

30 November 2023

 

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WHICH THE PUBLICATION, 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 £27.6 million (H1 FY23: £21.5 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 £12.2 billion(2) in the six
      months to 30 September 2023 with Funds under Management ("FUM") slightly lower
      at £8.8 billion (FY23: £12.2 billion and £9.0 billion). On a constant
      currency basis, AUM increased to £12.4 billion(3) in the period with FUM at
      £8.9 billion(3)

      ○                                         £247 million was raised into higher margin retail vehicles
      ○                                         The private equity division achieved further success in institutional
                                                fundraising through a £30 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 £348 million, including net outflows of £207 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 £5 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 2023    31 March 2023        Change
 Period-end AUM (£m)                                           12,245               12,167               +1%
 Period-end FUM (£m)                                           8,830                9,022                -2%

                                                               30 September 2023    30 September 2022    Change
 Total Revenue (£m)                                            67.8                 50.7                 +34%
 Recurring Revenue (% of Total)                                87.3%                89.4%                -2.1 pts
 Core EBITDA pre-SBP (£m)                                      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 £1.9 million and an expansion in its
regional strategy with the launch of two new institutional funds.  This
included one fund that achieved a £50 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 £12.2 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:

 (£ 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
 (£ billion)   30 Sep 2023  31 March 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 (£m)                           128      539
 New future deployment rights (£m)*    519     409
 Total (£m)                            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 (£m)              51       49
 Secured lending
 Value (£m)              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
(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
(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
(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
(https://www.lsegissuerservices.com/spark/FORESIGHTGROUPHOLDINGSLIMITED/events/621d8f99-8ed1-4164-b39b-c4ae59a24c3b)

 

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
(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.

 

                                                      Citigate Dewe Rogerson

 Foresight Group Investors
 Liz Scorer / Ben McGrory                             Caroline Merrell / Toby Moore
 +44 (0) 7966 966956 / +44 (0) 7443 821577            +44 (0) 7852 210329 / +44 (0) 7768 981763
 ir@foresightgroup.eu (mailto:ir@foresightgroup.eu)   caroline.merrell@citigatedewerogerson.com
                                                      (mailto:caroline.merrell@citigatedewerogerson.com) /
                                                      toby.moore@citigatedewerogerson.com
                                                      (mailto: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 £12.2 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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