Foresight Group Hldg - Trading Update - six months to 30 September 2023
10/10/2023 07:00
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RNS Number : 4829P Foresight Group Holdings Limited 10 October 2023
LEI: 213800NNT42FFIZB1T09
10 October 2023
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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 £12.1
billion(2) and £8.8 billion, marginally down 1% and 3% respectively in the
six months to 30 September 2023 (FY23: £12.2 billion and £9.0 billion). On a
constant currency basis, AUM remained at £12.2 billion(3) in the period with
FUM at £8.8 billion(3)
○ £159 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 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 £350 million, including inflows of £170 million offset by
outflows of £377 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 £5 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:
(£ 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
(£ billion) 30 Sep 2023 31 March 2023 Change % 30 Sep 2023 Change %
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 (£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 32 31
Value (£m) 51 46
Secured lending
Value (£m) 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
(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) 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 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 £12.1 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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