REG - Bridgepoint Group - Trading Statement

BridgepointAnnouncement

16/11/2022 07:00

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RNS Number : 5252G  Bridgepoint Group plc  16 November 2022

Bridgepoint Group plc

("Bridgepoint" or the "Company", and together with its subsidiaries the
"Group")

 

 

Trading statement: Resilient progress across the Group and guidance for FY
2022 unchanged

 

 

Despite more challenging macro conditions, Bridgepoint is pleased to report
that it remains on track against key targets for 2022.

 

Capital raising

 

Capital raising for Bridgepoint's equity and credit businesses continues to
make progress, reflecting the attractions of the well-balanced portfolios
Bridgepoint constructs which have a good track record of delivering attractive
returns from growth investment niches through cycles. In particular:

 

 •    Bridgepoint Europe VII is on track to complete its fund raise in H1 2023 with
      the Fund expected to hold its formal second closing in Q1 2023 with some
      investors wishing to draw capital from their 2023 annual allocations
 •    The Fund continues to enjoy strong interest from investors. As noted
      previously, the broader fund raise market is affected by the well documented
      denominator effect with falling quoted portfolio valuations impacting
      portfolio weightings. This is extending most current fund raising processes
 •    Both Bridgepoint Credit and Bridgepoint Growth fund raising programmes are
      also making good progress

 

Portfolio valuation

 

Following its September portfolio and valuation review, the Group can confirm
that its investment portfolios are trading largely in line with expectations
set at the start of the year despite current macro volatility:

 

 •    Bridgepoint's equity portfolios comprise mainly high margin, cash generative,
      growth companies (for example, 29% EBITDA/revenue average margin in BE VI)
 •    Equity portfolios have currency hedging covering some 78% of non-Euro
      exposures
 •    Rate hedging is in place for 69% of equity fund interest costs
 •    Funds have limited exposure to the UK (comprising only 2.5% of BE VI assets,
      for example)
 •    Bridgepoint funds also have limited exposure to assets driven by discretionary
      spending
 •    Portfolio companies have been impacted by rising energy costs, but Bridgepoint
      portfolios, as a whole, do not comprise businesses with high energy use and
      energy costs represent on average less than 2% of portfolio company revenues

 

These attributes were reflected in Q3 valuations which are in line with
expectations, with underlying profit growth within portfolios compensating for
the fall in valuation multiples across different sectors.

 

Current trading and outlook

 

The Group also reports that:

 

 •    Whilst exits across the market have been more challenging during the second
      half of the year, it remains on track to hit budgeted realisations for 2022
      with two major exits signed in Q3 at valuations ahead of expectations
 •    Capital commitments in all funds are in line with expectations with BE VII
      having now committed some 10% of fund capital since the start of the
      investment period in mid-May 2022
 •    Bridgepoint Credit continues to perform well against its targets for 2022
 •    Portfolio exit plans for 2023 are unchanged but execution will be dependent on
      market conditions
 •    A number of strategic projects remain under review. However, the Group
      currently remains cautious in evaluating acquisitions as valuation metrics
      re-calibrate

 

In the context of the above, Bridgepoint's financial guidance for 2022 remains
unchanged and the Group's outlook for 2023 financial performance remains
positive.

 

 

ENQUIRIES

 

Bridgepoint

 

 Analysts and investors                                     Media

 Adam Key                                                   James Murray

 adam.key@bridgepoint.eu (mailto:adam.key@bridgepoint.eu)   james.murray@bridgepoint.eu (mailto:james.murray@bridgepoint.eu)

 +44 7833 748010                                            +44 20 7034 3500

 

Finsbury Glover Hering (Public Relations Adviser to Bridgepoint)

 

Charles O'Brien / +44 20 7251 3801 / +44 7825 043 656

Anjali Unnikrishnan / +44 20 7251 3801 / +44 7826 534 233

bridgepoint@fgsglobal.com (mailto:bridgepoint@fgsglobal.com)

 

 

Legal Entity Identifier (LEI): 213800KFNMVI8PDZX472

 

Forward looking statements

 

This announcement may include forward-looking statements. Forward-looking
statements are statements that are not historical facts and may be identified
by words such as "plans", "targets", "aims", "believes", "expects",
"anticipates", "intends", "estimates", "will", "may", "continues", "should"
and similar expressions. These forward-looking statements reflect, at the time
made, the beliefs, intentions and current targets/aims of Bridgepoint Group
plc. Forward-looking statements involve risks and uncertainties because they
relate to events and depend on circumstances that may or may not occur in the
future. The forward-looking statements in this announcement are based upon
various assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and are beyond its
control. Forward-looking statements are not guarantees of future performance
and such risks, uncertainties, contingencies and other important factors could
cause the actual outcomes and the results of operations, financial condition
and liquidity of the Company, its subsidiary undertakings or the industry to
differ materially from those results expressed or implied in this announcement
by such forward-looking statements. No representation or warranty, express or
implied, is made that any of these forward-looking statements or forecasts
will come to pass or that any forecast result will be achieved. Undue
influence should not be given to, and no reliance should be placed on, any
forward-looking statement. No statement in this announcement is intended to be
nor may be construed as a profit forecast. Neither the Company, nor any of its
subsidiaries nor any of their affiliates, nor any of its or their officers,
employees, agents or advisers, undertake to publicly update or revise any such
forward-looking statement, except to the extent required by applicable law.

 

 

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