REG - Foresight Group Hldg - Trading update for financial year ended 31/03/24

Foresight groupAnnouncement

11/04/2024 07:00

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RNS Number : 1104K  Foresight Group Holdings Limited  11 April 2024

LEI: 213800NNT42FFIZB1T09

11 April 2024

 

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. FOR IMMEDIATE RELEASE

 

 

 

 

 

 

 

Trading update for the financial year ended 31 March 2024

 

Significant year-on-year growth in core EBITDA pre-SBP

 

Foresight Group Holdings Limited ("Foresight", the "Group"), a leading
infrastructure and private equity investment manager, announces its trading
update for the financial year ended 31 March 2024 ("FY24", "the period").

 

Financial and Operational Highlights(1)

 

Profitability

 

We expect FY24 core EBITDA pre-Share Based Payments ("SBP") to be in line with
market expectations (FY24 consensus range: £58.3 million - £60.3
million)(2), representing strong year-on-year growth (FY23: £50.2 million).
This performance was supported by successful prior year and FY24 fundraising
into higher margin and long tenure investment vehicles, the annualisation of
FY23 acquisition activity and the maintenance of cost discipline as we
invested in our future fundraising pipeline.

 

AUM/FUM(3)

 

In the period, Assets under Management ("AUM") and Funds under Management
("FUM") decreased modestly against the backdrop of challenging market
conditions to £11.9 billion and £8.4 billion respectively (FY23: £12.2
billion AUM and £9.0 billion FUM). On a constant currency basis, AUM
decreased to £12.1 billion, with FUM at £8.5 billion.

 

AUM movements in the period included:

 

·      Increases from:

o  Record annual retail fundraising into higher margin evergreen vehicles,
with FY24 inflows of £436 million

o  Institutional private equity inflows of £134 million, including the
launch of two new funds

·      Decreases from:

o  A reduction of £569 million in AUM within the lower revenue margin
Foresight Capital Management ("FCM") division. This movement comprised net
outflows of £446 million, including inflows of £274 million, and negative
NAV performance of £123 million

o  Adverse foreign exchange movement of £197 million

o  Downward valuation adjustments to infrastructure assets of £176 million,
predominantly on traditional infrastructure assets

 

Revenue

 

High quality revenue visibility maintained, with recurring revenue within our
target range of 85-90%.

 

Outlook

 

We are confident that the momentum behind our scalable energy transition
strategies and the strength of our higher margin strategies will support
continued core EBITDA pre-SBP growth, with specific drivers for FY25
including:

 

·      FY24 fundraising into higher margin vehicles and the resulting
FUM mix

·      The quality of our retail distribution platform which continues
to deliver fundraising success across our higher margin retail vehicles

·      A robust institutional infrastructure fundraising pipeline with
encouraging investor demand for the second vintage of our flagship energy
transition strategy, Foresight Energy Infrastructure Partners ("FEIP") II.
This provides confidence that a first close will be achieved in the near term

 

Bernard Fairman, Executive Chairman of Foresight Group Holdings Limited,
commented:

 

"We are pleased to announce a strong performance in FY24 as the Group
benefitted from increasing demand for our higher margin retail vehicles and
successful institutional fundraising activity from our private equity
business. Whilst reporting a modest decrease in AUM/FUM in the period, we are
well placed to achieve profitable growth in FY25 in line with current market
expectations.

 

As an international investment manager, we bring investors closer to the
opportunities driving the transition to cleaner energy, decarbonised
infrastructure and the economic potential of growth companies. Our extensive
track record of identifying and then maximising the value of attractive
investment opportunities means that our products are well positioned to
attract institutional and retail investors within our key markets.

 

As we enter our new financial year, we are very encouraged by improving
sentiment in the institutional infrastructure fundraising market and in
particular by the positive reception to the second vintage of our flagship
energy transition strategy (FEIP II). We are confident in the ability of our
diversified business model to continue to deliver strong profitable growth."

 

FY24 Results Announcement

 

Foresight's Full Year Results to 31 March 2024 are scheduled to be released on
Thursday 27 June 2024, 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.

 

 

Notes:

1.     Please note that all figures contained in this announcement are
unaudited and subject to change.

 

2.     As at 1 December 2023, the average consensus estimate for FY24 core
EBITDA pre-SBP was £59.3 million, with a range of £58.3 million to £60.3
million.

 

3.     AUM and FUM movement:

                               Last 3 months          Last 12 months         Constant currency basis (LTM)

                                                      ("LTM")
 (£ billion)   31 Mar 2024     31 Dec 2023  Change %  31 Mar 2023  Change %  31 Mar 2024      Change %
               (a)             (b)          (a/b)     (c)          (a/c)     (d)              (d/c)
 AUM           11.9            12.4         (4)%      12.2         (2)%      12.1             (1)%
 FUM           8.4             8.8          (4)%      9.0          (7)%      8.5              (6)%

Percentage movements are calculated on underlying numbers.

 

 AUM (£ billion)             31 Mar 2024                                         31 Dec 2023             Change %
 Infrastructure              9.6                                                 10.0                    (4)%
 Private Equity              1.6                                                 1.5                     +4%
 FCM                         0.7                                                 0.9                     (19)%
                                                         H/Advisors Maitland

 Foresight Group Investors
 Liz Scorer / Ben McGrory                                Sam Cartwright / Genevieve Ryan
 +44 (0) 7966 966956 / +44 (0) 7443 821577               +44 (0) 782 725 4561 / +44 (0) 781 710 5562
 ir@foresightgroup.eu (mailto:ir@foresightgroup.eu)      Foresight@h-advisors.global (mailto:Foresight@h-advisors.global)

 

 

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, 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 £11.9 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
(https://www.foresightgroup.eu/shareholders)

*Based on unaudited AUM as at 31 March 2024.

 

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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