Q1 update for the three months ended 30 April 2024
25/06/2024 13:40
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ICG Enterprise Trust plc
25 June 2024
Q1 update for the three months ended 30 April 2024
NAV per Share of 1,925p
Highlights * NAV per Share of 1,925p (31 January 2024: 1,909p); NAV per Share Total Return of 1.2% during the quarter and 4.3% over the last twelve months (5 year annualised: 14.5%)
* Portfolio Return on a Local Currency Basis of 0.5% during the quarter and 4.8% on an LTM basis (5 year annualised: 16.2%)
* Total Realisations of £29m and New Investments of £32m
* Two Full Exits completed at a weighted average Uplift to Carrying Value of 29.2%
* Progressive dividend policy maintained: first quarter dividend of 8.5p per share (Q1 FY24: 8p). Board intends to pay total dividends of at least 35p per share for FY25 (FY24: 33p)
* £7.0m returned via ongoing share buyback programme in Q1 FY25 (Q1 FY24: £3.1m)
* Implementing FY25 opportunistic buyback programme: £7.4m returned since it was announced on 8 May 2024
(1)Up to and including 21 June 2024
PERFORMANCE OVERVIEW
Annualised
Performance to 30 April 2024 3 months 1 year 3 years 5 years 10 years
Portfolio Return on a Local Currency Basis 0.5% 4.8% 14.6% 16.2% 13.4%
NAV per Share Total Return 1.2% 4.3% 13.0% 14.5% 13.1%
Share Price Total Return (0.8)% 17.3% 6.4% 9.3% 10.7%
FTSE All-Share Index Total Return 7.5% 7.5% 7.4% 5.4% 5.8%
Portfolio activity overview for Q1 FY25 Primary Direct Secondary Total ICG-managed
Portfolio Return on a Local Currency Basis 1.1% 1.0% (2.0)% 0.5% (1.1)%
Portfolio Return in Sterling 1.8% 1.9% (0.9)% 1.3% (0.3)%
New Investments £31m £1m — £32m £4m
Proceeds £13m £1m £16m £29m £19m
New fund Commitments £28m — — £28m —
Closing Portfolio value £746m £402m £222m £1,370m £422m
% Total Portfolio 54% 29% 16% 100% 31%
ENQUIRIES
Institutional investors and analysts:
Martin Li, Shareholder Relations +44 (0) 20 3545
1816
Nathan Brown, Deutsche Numis +44 (0) 20 7260 1426
David Harris, Cadarn
Capital +44 (0) 20 7019 9042
Media:
Cat Armstrong, Corporate Communications, ICG +44 (0) 20 3545
1850
COMPANY TIMETABLE
A presentation for investors and analysts will be held at 11:00 BST tomorrow
(Wednesday 26 June 2024). A link for the presentation can be found on the
Results & Reports page
(https://www.globenewswire.com/Tracker?data=62geESjA2Z4nDHnagQJKDKWN7VL7Rkv4dz-69fH5qd9yJVeM0IhVhBy4mtNPMuYTFvuPJhVwehLjiHOu9D0VIEZnuj1Vn4I5lTxSaf619kZjwS2RyBFpyoCmRPJXpEMU6xSY9Sfq3jPVPJeN2cX8gg==)
of the Company website. A recording of the presentation will be made available
on the Company website after the event.
FY25 First Interim Dividend
Ex-dividend date 15 August 2024
Record date 16 August 2024
Dividend payment date 30 August 2024
ABOUT ICG ENTERPRISE TRUST
ICG Enterprise Trust is a leading listed private equity investor focused on
creating long-term growth by delivering consistently strong returns through
selectively investing in profitable, cash-generative private companies,
primarily in Europe and the US.
We invest in companies directly as well as through funds managed by
Intermediate Capital Group plc ("ICG") and other leading managers who focus on
creating long-term value and building sustainable growth through active
management and strategic change.
ICG Alternative Investment Limited, a regulated subsidiary of ICG, acts as the
Manager of the Company.
NOTES
Included in this document are Alternative Performance Measures (“APMs”).
APMs have been used if considered by the Board and the Manager to be the most
relevant basis for shareholders in assessing the overall performance of the
Company, and for comparing the performance of the Company to its peers and its
previously reported results.
All performance figures are stated on a Total Return basis (i.e. including the
effect of re-invested dividends).
DISCLAIMER
The information contained herein and on the pages that follow does not
constitute an offer to sell, or the solicitation of an offer to acquire or
subscribe for, any securities in any jurisdiction where such an offer or
solicitation is unlawful or would impose any unfulfilled registration,
qualification, publication or approval requirements on ICG Enterprise Trust
PLC (the "Company") or its affiliates or agents. Equity securities in the
Company have not been and will not be registered under the applicable
securities laws of the United States, Australia, Canada, Japan or South Africa
(each an “Excluded Jurisdiction”). The equity securities in the Company
referred to herein and on the pages that follow may not be offered or sold
within an Excluded Jurisdiction, or to any U.S. person ("U.S. Person") as
defined in Regulation S under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), or to any national, resident or citizen of an Excluded
Jurisdiction.
The information on the pages that follow may contain forward looking
statements. Any statement other than a statement of historical fact is a
forward looking statement. Actual results may differ materially from those
expressed or implied by any forward looking statement. The Company does not
undertake any obligation to update or revise any forward looking statements.
You should not place undue reliance on any forward looking statement, which
speaks only as of the date of its issuance.
MANAGER’S REVIEW
Our investment strategy
We focus on investing in buyouts of profitable, cash-generative businesses in
developed markets that exhibit defensive growth characteristics which we
believe will support strong and resilient returns across economic cycles.
We take an active approach to portfolio construction, with a flexible mandate
that enables us to deploy capital in Primary, Direct and Secondary
investments. Geographically we focus on the developed markets of North America
and Europe, including the UK, which have deep and mature private equity
markets supported by a robust corporate governance framework.
Investments managed by ICG accounted for 31% of the Portfolio.
Medium-term target Q1 FY25 Five-year average
1. Target Portfolio composition (1)
Investment category
Primary ~50% 55% 59%
Direct ~25% 29% 27%
Secondary ~25% 16% 14%
Geography
North America ~50% 45% 40%
Europe (inc. UK) ~50% 49% 53%
Other — 6% 7%
2. Balance sheet
Net cash/(Net debt) (2) ~0% (3)% (1)%
1 As percentage of Portfolio; 2 (Net cash)/net debt as a percentage of NAV
Performance overview
* At 30 April 2024, the Portfolio was valued at £1,370m. The Portfolio Return
on a Local Currency Basis for the quarter was 0.5% and in Sterling terms the
Portfolio value grew by 1.3%
* ICG Enterprise Trust generated a NAV per Share Total Return of 1.2% during
the quarter, ending the period with a NAV per Share of 1,925p
* Over the last five years ICG Enterprise Trust has generated an annualised
NAV per Share Total Return of 14.5%
Movement in the Portfolio £m 3 months to 30 April 2024
Opening Portfolio £1,349m
Total New Investments £32m
Total Proceeds £(29)m
Portfolio net cashflow £3m
Valuation movement (1) £7m
Currency movement £11m
Closing Portfolio £1,370m
% Portfolio growth (local currency) 0.5%
% currency movement 0.8%
% Portfolio growth (Sterling) 1.3%
Expenses and other income (0.3)%
Co-investment Incentive Scheme Accrual (0.2)%
Impact of share buybacks and dividend reinvestment 0.3%
NAV per Share Total Return 1.2%
1. 92% of the Portfolio is valued using 31 March 2024 (or later) valuations.
Quoted company exposure
* We do not actively invest in publicly quoted companies but gain listed
investment exposure when IPOs are used as a route to exit an investment. In
these cases, exit timing typically lies with the manager with whom we have
invested
* At 30 April 2024, ICG Enterprise Trust’s exposure to quoted companies was
valued at £59.9m, equivalent to 4.4% of the Portfolio value (31 January 2024:
4.8%). There was one quoted investment that individually accounted for 0.5% or
more of the Portfolio value:
Company Ticker 30 April 2024 % of Portfolio value
Chewy CHWY-US 1.1%
Other companies 3.3%
Total 4.4%
Realisation activity
* Total Realisation proceeds of £29m during the quarter
* Two Full Exits completed during the quarter, at a weighted average Uplift to
Carrying Value of 29.2% and a 4.4x Multiple to Cost
New investment activity
* Total New Investments of £32m during the quarter, of which 10% (£4m) was
alongside funds managed by ICG
* The split of Total New Investments was split by category as follows:
Investment Category Cost (£m) % of New Investments
Primary £31m 95%
Direct £1m 5%
Total £32m 100%
Commitments
* We made two new fund Commitments totalling £27.6m during the quarter:
Fund Manager Commitment during the period
Local currency £m
Leeds VII Leeds Equity $20.0m £15.7m
Oak Hill VI Oak Hill $15.0m £11.9m
* At 30 April 2024 we had Total Undrawn Commitments of £434m to funds in
their investment period and a further £118m to funds outside their investment
period
Balance sheet and liquidity
* Total available liquidity at 30 April 2024 was £169.3m (31 January 2024:
£195.9m)
£m
Cash at 31 January 2024 11.2
Total Proceeds 29.0
New investments (32.3)
Debt drawn down 20.0
Shareholder returns (12.4)
Management fees (4.0)
Co-investment Incentive Scheme distribution (6.1)
FX and other expenses (0.9)
Cash at 30 April 2024 4.5
Available undrawn debt facilities 164.8
Total available liquidity 169.3
* The cash balance was £4.5m (31 January 2024: £11.2m) and drawn debt was
£40.0m (31 January 2024: £20.0m). As a result, we had net debt of £35.5m
(31 January 2024: £8.8m)
* Post period end, we announced an extension to the maturity of our €240m
revolving credit facility by one year, to 29 May 2028. All other key terms
remain the same as in the agreement announced on 1 June 2023 (available here
(https://www.londonstockexchange.com/news-article/ICGT/icg-enterprise-trust-plc-financing-facility-update/15980097))
* At 30 April 2024, the Portfolio represented 106.9% of net assets (31 January
2024: 105.1%)
£m % of net assets
Portfolio 1,370.5 106.9%
Cash 4.5 0.4%
Drawn debt (40.0) (3.1)%
Co-investment Incentive Scheme Accrual (49.3) (3.8)%
Other net current liabilities (3.6) (0.3)%
Net assets 1,282.1 100.0%
Dividend and share buyback
* Progressive dividend policy maintained: first quarter dividend of 8.5p per
share (Q1 FY24: 8p)
* It is the Board’s current intention to declare total dividends of at least
35p per share for FY25 (FY24: 33p)
* The following purchases have been made under the Company's long-term share
buyback programme:
Q1 FY25 Since 19 October 2022 (1)
Number of shares purchased 590,000 2,137,188
Capital returned to shareholders £7.0m £24.8m
Number of days shares have been acquired under the buyback programme 20 133
Weighted average discount to last reported NAV 39.7% 39.3%
(1) Being the date the long-term share buyback programme was announced, up to
and including 21 June 2024
* Post period-end, the Board announced an opportunistic share buyback
programme for FY25 of up to £25m. So far, £7.4m has been returned to
shareholders via this programme, through the purchase of 620,000 shares at a
weighted-average discount of 37.7% to the last reported NAV
Activity since the period end
Notable activity between 1 May 2024 and 31 May 2024 has included Realisation
Proceeds of £11m; New investments of £24m; and New fund commitments of
£12.8m.
ICG Private Equity Fund Investments Team
25 June 2024