REG - ICG Enterprise Trust - Unaudited results for six months to 31 July 2016 <Origin Href="QuoteRef">ICGT.L</Origin> - Part 2
28/09/2016 07:07
- Part 2: For the preceding part double click ID:nRSb0113La
35.1% 102.3 40.3%
- Euro 158.2 53.3% 131.2 51.7%
- US dollar 32.4 10.9% 18.4 7.2%
- Other European 2.0 0.7% 1.9 0.8%
Total 296.8 100.0% 253.8 100.0%
Dividend HISTORY and Shareholder Analysis
31 July 2016* 4.0 10.0 - 10.0 798.0 592.0
31 January 2016 11.1 11.0 - 11.0 730.9 545.0
31 January 2015 13.0 10.0 5.5 15.5 695.2 575.0
31 January 2014 19.0 7.5 8.0 15.5 677.2 563.5
31 January 2013 3.2 5.0 - 5.0 631.5 487.0
31 January 2012 6.3 5.0 - 5.0 569.4 357.0
31 January 2011 1.5 2.25 - 2.25 534.0 308.0
31 December 2009 -0.1 2.25 - 2.25 464.1 305.0
31 December 2008 5.1 4.5 - 4.5 449.0 187.0
31 December 2007 8.9 8.0 - 8.0 519.4 474.0
31 December 2006 7.4 6.5 - 6.5 454.6 386.0
8.0
-
8.0
519.4
474.0
31 December 2006
7.4
6.5
-
6.5
454.6
386.0
* As discussed in the Chairman's Statement, an interim dividend of 10.0p per
share will be paid on 21 October.
Individuals 40,362 57.0% 40,443 56.7%
Investment funds 18,298 25.8% 19,402 27.2%
Private client wealth managers 5,262 7.4% 5,246 7.4%
Pensions and endowments 3,441 4.9% 3,535 5.0%
Specialist private equity investors 1,579 2.2% 1,125 1.6%
Banks 1,290 1.8% 807 1.1%
Insurance companies 268 0.4% 268 0.4%
Other 368 0.5% 501 0.7%
Total 70,868 100% 71,327 100.0%
**Excludes 2,044,589 shares held in treasury.+Excludes 1,586,613 shares held in treasury.
501
0.7%
Total
70,868
100%
71,327
100.0%
**Excludes 2,044,589 shares held in treasury.+Excludes 1,586,613 shares held
in treasury.
UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 JULY 2016
Income Statement (unaudited)
Half year to 31 July 2016 Half year to 31 July 2015 Year ended 31 January 2016
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment returns
Income, gains and losses on investments 4,560 48,436 52,996 7,720 11,118 18,838 12,100 33,761 45,861
Deposit interest 163 - 163 145 - 145 309 - 309
Other income - - - - - - 115 - 115
Foreign exchange gains and losses - 1,924 1,924 - (572) (572) - 747 747
4,723 50,360 55,083 7,865 10,546 18,411 12,524 34,508 47,032
Expenses
Investment management charges (736) (2,061) (2,797) (751) (2,251) (3,002) (1,509) (4,260) (5,769)
Other expenses (588) (567) (1,155) (754) (571) (1,325) (1,722) (1,123) (2,845)
(1,324) (2,628) (3,952) (1,505) (2,822) (4,327) (3,231) (5,383) (8,614)
Profit before taxation 3,399 47,732 51,131 6,360 7,724 14,084 9,293 29,125 38,418
Taxation (526) 526 - (562) 562 - (1,292) 1,292 -
Profit for the period 2,873 48,258 51,131 5,798 8,286 14,084 8,001 30,417 38,418
Attributable to:Equity shareholders 2,873 48,258 51,131 5,798 8,286 14,084 8,001 30,417 38,418
Basic and diluted earnings per share 71.7p 19.4p 53.1p
The columns headed 'Total' represent the income statement for the relevant
financial periods and the columns headed 'Revenue' and 'Capital' are
supplementary information, in line with the Statement of Recommended Practice
for investment trusts issued by the Association of Investment Companies in
November 2014. There is no Other Comprehensive Income.
Balance Sheet (unaudited)
31 July 2016 31 July 2015 31 January 2016
£'000 £'000 £'000
Non-current assets
Investments held at fair value
- Unquoted investments 392,496 341,296 356,939
- Quoted investments - 2,517 -
- Subsidiary investments 60,823 56,937 57,168
453,319 400,750 414,107
Current assets
Cash and cash equivalents 110,314 100,994 103,831
Receivables 2,763 4,511 4,038
113,077 105,505 107,869
Current liabilities
Payables 851 586 634
Net current assets 112,226 104,919 107,235
Total assets less current liabilities 565,545 505,669 521,342
Capital and reserves
Share capital 7,292 7,292 7,292
Capital redemption reserve 2,112 2,112 2,112
Share premium 12,936 12,936 12,936
Capital reserve 530,392 467,705 484,782
Revenue reserve 12,813 15,624 14,220
Total equity 565,545 505,669 521,342
Net asset value per share (basic and diluted) 798.0p 700.3p 730.9p
Cash Flow Statement (unaudited)
Half year to Half year to Year to
31 July 31 July 31 January
2016 2015 2016
£'000 £'000 £'000
Operating activities
Sale of portfolio investments 37,518 51,554 89,941
Purchase of portfolio investments (26,192) (28,261) (56,213)
Interest income received from portfolio investments 3,134 5,630 8,951
Dividend income received from portfolio investments 513 2,635 2,882
Other income received 163 156 384
Investment management charges paid (2,726) (2,975) (5,840)
Other expenses paid (622) (571) (1,269)
Net cash inflow from operating activities 11,788 28,168 38,836
Financing activities
Bank facility fee (518) (1,431) (1,963)
Purchase of shares into treasury (2,412) (4,070) (9,110)
Equity dividends paid (4,280) (11,209) (14,816)
Net cash outflow from financing activities (7,210) (16,710) (25,889)
Net increase in cash and cash equivalents 4,578 11,458 12,947
Cash and cash equivalents at beginning of period 103,831 90,137 90,137
Net increase in cash and cash equivalents 4,578 11,458 12,947
Effect of changes in foreign exchange rates 1,905 (601) 747
Cash and cash equivalents at end of period 110,314 100,994 103,831
Statement of Changes in Equity (unaudited)
Share Capital redemption reserve Share Capital reserve Revenue reserve Total shareholders' equity
capital premium
£'000 £'000 £'000 £'000 £'000 £'000
Six months to31 July 2016
Opening balance at 7,292 2,112 12,936 484,782 14,220 521,342
1 February 2016
Profit for the period and total comprehensive income - - - 48,258 2,873 51,131
Dividends paid or approved - - - - (4,280) (4,280)
Purchase of shares into treasury* - - - (2,648) - (2,648)
Closing balanceat 31 July 2016 7,292 2,112 12,936 530,392 12,813 565,545
* 458,426 10p ordinary shares with an aggregate nominal value of £45,843 were
purchased during the period and are held in treasury. Distributable reserves
have been reduced by £2.6 million, being the consideration paid for these
shares.
Share Capital redemption reserve Share Capital reserve Revenue reserve Total shareholders' equity
capital premium
£'000 £'000 £'000 £'000 £'000 £'000
Six months to31 July 2015
Opening balance at 1 February 2015 7,292 2,112 12,936 463,489 21,035 506,864
Profit for the period and total comprehensive income - - - 8,286 5,798 14,084
Dividends paid or approved - - - - (11,209) (11,209)
Purchase of shares into treasury* - - - (4,070) - (4,070)
Closing balanceat 31 July 2015 7,292 2,112 12,936 467,705 15,624 505,669
* 705,833 10p ordinary shares with an aggregate nominal value of £70,583 were
purchased during the period and are held in treasury. Distributable reserves
have been reduced by £4.1 million, being the consideration paid for these
shares.
Share Capital redemption reserve Share Capital reserve Revenue reserve Total shareholders' equity
capital premium
£'000 £'000 £'000 £'000 £'000 £'000
Year to31 January 2016
Opening balance at 7,292 2,112 12,936 463,489 21,035 506,864
1 February 2015
Profit for the year and total comprehensive income - - - 30,417 8,001 38,418
Dividends paid or approved - - - - (14,816) (14,816)
Purchase of shares into treasury - - - (9,124) - (9,124)
Closing balanceat 31 January 2016 7,292 2,112 12,936 484,782 14,220 521,342
* 1,586,163 10p ordinary shares with an aggregate nominal value of £158,616
were purchased during the period and are held in treasury. Distributable
reserves have been reduced by £9.1 million, being the consideration paid for
these shares.
Notes to the interim report (unaudited)
1 GENERAL INFORMATION ICG Enterprise Trust plc ("the Company") is registered in England and Wales and domiciled in England. The registered office is Juxon House, 100 St Paul's Churchyard, London EC4M 8BU. The Company's objective is to provide shareholders with long term capital growth through investment in unquoted companies, mostly through private equity funds but also directly. This report was approved for issue by the Board of Directors on 27 September 2016. 2 UNAUDITED INTERIM REPORT This financial
report does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year to 31 January 2016 were approved by the Board of Directors on 26 April 2016 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statements under section 498(2) or (3) of the Companies Act 2006. This financial report has not been audited. 3
BASIS OF PREPARATION The financial report for the six months ended 31 July 2016, comprising the interim financial statements, has been prepared in accordance with the Disclosure Rules and Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim financial reporting' as adopted by the European Union. This financial report should be read in conjunction with the annual financial statements for the year to 31 January 2016, which have been prepared in accordance with IFRSs as adopted by the
European Union. The accounting policies applied are consistent with those of the annual financial statements for the year to 31 January 2016, as described in those annual financial statements. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. In order to reflect the activities of an investment trust company, supplementary information which analyses the income statement between items of a revenue and capital nature has been
presented alongside the income statement. In analysing total income between capital and revenue returns, the directors have followed the guidance contained in the Statement of Recommended Practice for investment trusts issued by the Association of Investment Companies in November 2014. INVESTMENTS All investments are designated upon initial recognition as held at fair value through profit or loss (described in these financial statements as investments held at fair value) and are measured at subsequent
reporting dates at fair value. Changes in the value of all investments held at fair value, which include returns on those investments such as dividends and interest, are recognised in the income statement and are allocated to the revenue column or the capital column in accordance with the Statement of Recommended Practice for investment trusts issued by the Association of Investment Companies in November 2014. UNQUOTED INVESTMENTS Fair value for unquoted investments is established by using various valuation
techniques. Funds and co-investments are valued at the underlying investment manager's valuation where this is consistent with the requirement to use fair value. Where this is not the case adjustments are made or alternative methods are used as appropriate. The most common reason for adjustments is to take account of events occurring after the date of the manager's valuation, such as realisations. The fair value of direct unquoted investments is calculated in accordance with the 2015 International Private
Equity and Venture Capital Valuation Guidelines. The primary valuation methodology used is an earnings multiple methodology, with other methodologies used where they are more appropriate. QUOTED INVESTMENTS Quoted investments are held at the last traded bid price on the balance sheet date. When a purchase or sale is made under contract, the terms of which require delivery within the timeframe of the relevant market, the contract is reflected on the trade date. SUBSIDIARY INVESTMENTS Subsidiary investments
represents the fair value of the Company's interests in its limited partnership subsidiaries: ICG Enterprise Trust Limited Partnership, ICG Enterprise Trust (2) Limited Partnership and ICG Enterprise Trust Co-investment LP. CURRENT ASSET INVESTMENTS HELD AT FAIR VALUE Current asset investments may include investments in fixed income funds or instruments. These are valued based on the redemption price as at the balance sheet date, which is based on the value of the underlying investments. ASSOCIATES
Investments which fall within the definition of an associate under IAS 28 (Investments in associates) are accounted for as investments held at fair value through profit or loss, as permitted by that standard. 4 RECEIVABLES The Company has access to committed bank facilities, which are undrawn. The set up costs in relation to these were capitalised and are recognised over the lives of the facilities on a straight line basis. At 31 July 2016, £668,900 of bank facility costs are included within receivables.
Of this, £368,364 is expected to be amortised in less than one year. 5 DIVIDENDS Half year to31 July 2016£'000 Half year to31 July 2015£'000 Year to31 January 2016£'000 Final in respect of the year ended 31 January 2014: 7.5p per share - 5,468 - Special in respect of the year ended 31 January 2014: 8.0p per share - 5,834 - Final in respect of the year ended 31 January 2015: 10.0p per share - - 7,232 Special in respect of the year ended 31 January 2015: 5.5p per share - - 3,977 Final in respect of the
year ended 31 January 2016: 6.0p per share 4,280 - - 4,280 11,302 11,209 An interim dividend for the year ended 31 January 2017 of 10.0p per share will be paid on 21 October 2016. 6 CALLED UP SHARE CAPTIAL At 31 July 2016, 72,913,000 shares had been allocated, called up and fully paid. Of this total, the Company held 2,044,589 shares in treasury (31 July 2015: 705,833 and 31 January 2016: 1,586,163) leaving 70,868,411 outstanding, all of which have equal voting rights. 7 EARNINGS PER SHARE
Half year to31 July 2016 Half year to31 July 2015 Year to31 January 2016 Revenue return per ordinary share 4.0p 8.0p 11.1p Capital return per ordinary share 67.7p 11.4p 42.1p Earnings per ordinary share (basic and diluted) 71.7p 19.4p 53.1p Weighted average number of shares 71,290,770 72,602,027 72,310,909 The earnings per share figures are based on the weighted average numbers of shares set out above. 8 FAIR VALUES ESTIMATION IFRS 13 requires disclosure of fair
value measurements of financial instruments categorised according to the following fair value measurement hierarchy: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). • Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs) (level 3). All private equity and quoted investments are valued at fair value in accordance with IFRS 13. The Company's unquoted investments are all classified as Level 3 investments. Fair value for unquoted investments is established by using various valuation techniques. Funds ("indirect investments") are valued at the underlying investment manager's valuation where this is consistent with the requirement to use fair value. Where this is not the case adjustments are made or
alternative methods are used as appropriate. The most common reason for adjustments is to take account of events occurring after the date of the manager's valuation, such as realisations. The fair value of direct unquoted investments is calculated in accordance with the International Private Equity and Venture Capital Valuation ("IPEV") Guidelines issued in 2015. The primary valuation methodology used is an earnings multiple methodology, with other methodologies used where they are more appropriate. The
fair value of the Company's unquoted investments is sensitive to changes in the assumed earnings multiples. An increase in the earnings multiple would lead to an increase in the fair value of the investment portfolio and a decrease in the earnings multiple would lead to a decrease in the fair value. The realised and unrealised gains and losses have been recognised in Income, gains and losses on investments in the Income Statement. The following table presents the changes in level 3 instruments for the six
months to 31 July 2016. Unquoted investments (indirect) at fair value through profit or loss Unquoted investments(direct) at fair value through profit or loss Subsidiary investments Total £'000 £'000 £'000 £'000 Opening balance 272,495 84,444 57,168 414,107 Additions 25,899 293 - 26,192 Disposals (22,976) (9,983) (2,457) (35,416) Gains and losses recognised in profit or loss 28,770 13,554 6,112 48,436 Closing balance 304,188 88,308 60,823 453,319 Total gains for the period included in income statement
for assets held at the end of the reporting period 18,278 6,291 6,112 30,681 The following tables present the assets that are measured at fair value. The Company did not have any financial liabilities measured at fair value at these dates. There were no level 1 or level 2 instruments at 31 July 2016 (31 January 2016: none)
Half year to31 July 2016£'000 Half year to31 July 2015£'000 Year to31 January 2016£'000
Final in respect of the year ended 31 January 2014: 7.5p per share - 5,468 -
Special in respect of the year ended 31 January 2014: 8.0p per share - 5,834 -
Final in respect of the year ended 31 January 2015: 10.0p per share - - 7,232
Special in respect of the year ended 31 January 2015: 5.5p per share - - 3,977
Final in respect of the year ended 31 January 2016: 6.0p per share 4,280 - -
4,280 11,302 11,209
An interim dividend for the year ended 31 January 2017 of 10.0p per share will
be paid on 21 October 2016. 6 CALLED UP SHARE CAPTIAL At 31 July 2016,
72,913,000 shares had been allocated, called up and fully paid. Of this
total, the Company held 2,044,589 shares in treasury (31 July 2015: 705,833
and 31 January 2016: 1,586,163) leaving 70,868,411 outstanding, all of which
have equal voting rights. 7 EARNINGS PER SHARE
Half year to31 July 2016 Half year to31 July 2015 Year to31 January 2016
Revenue return per ordinary share 4.0p 8.0p 11.1p
Capital return per ordinary share 67.7p 11.4p 42.1p
Earnings per ordinary share (basic and diluted) 71.7p 19.4p 53.1p
Weighted average number of shares 71,290,770 72,602,027 72,310,909
The earnings per share figures are based on the weighted average numbers of
shares set out above. 8 FAIR VALUES ESTIMATION IFRS 13 requires disclosure
of fair value measurements of financial instruments categorised according to
the following fair value measurement hierarchy: • Quoted prices (unadjusted)
in active markets for identical assets or liabilities (level 1). • Inputs
other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (that is, as prices) or indirectly (that
is, derived from prices) (level 2). • Inputs for the asset or liability that
are not based on observable market data (that is, unobservable inputs) (level
3). All private equity and quoted investments are valued at fair value in
accordance with IFRS 13. The Company's unquoted investments are all
classified as Level 3 investments. Fair value for unquoted investments is
established by using various valuation techniques. Funds ("indirect
investments") are valued at the underlying investment manager's valuation
where this is consistent with the requirement to use fair value. Where this is
not the case adjustments are made or alternative methods are used as
appropriate. The most common reason for adjustments is to take account of
events occurring after the date of the manager's valuation, such as
realisations. The fair value of direct unquoted investments is calculated in
accordance with the International Private Equity and Venture Capital Valuation
("IPEV") Guidelines issued in 2015. The primary valuation methodology used is
an earnings multiple methodology, with other methodologies used where they are
more appropriate. The fair value of the Company's unquoted investments is
sensitive to changes in the assumed earnings multiples. An increase in the
earnings multiple would lead to an increase in the fair value of the
investment portfolio and a decrease in the earnings multiple would lead to a
decrease in the fair value. The realised and unrealised gains and losses have
been recognised in Income, gains and losses on investments in the Income
Statement. The following table presents the changes in level 3 instruments for
the six months to 31 July 2016.
Unquoted investments (indirect) at fair value through profit or loss Unquoted investments(direct) at fair value through profit or loss Subsidiary investments Total
£'000 £'000 £'000 £'000
Opening balance 272,495 84,444 57,168 414,107
Additions 25,899 293 - 26,192
Disposals (22,976) (9,983) (2,457) (35,416)
Gains and losses recognised in profit or loss 28,770 13,554 6,112 48,436
Closing balance 304,188 88,308 60,823 453,319
Total gains for the period included in income statement for assets held at the end of the reporting period 18,278 6,291 6,112 30,681
The following tables present the assets that are measured at fair value. The
Company did not have any financial liabilities measured at fair value at these
dates. There were no level 1 or level 2 instruments at 31 July 2016 (31
January 2016: none)
9 INVESTMENT MANAGEMENT CHARGES
The investment management charges for the periods ended 31 July 2015 and 31
January 2016 set out in the table below were payable to the Former Manager,
Graphite Capital Management LLP. The Former Manager was a related party in
those periods. The investment management charges for the half year to 31 July
2016 were payable to the Manager, ICG Alternative Investment Limited. The
Manager was a related party in that period.
Half year to31 July 2016 Half year to31 July 2015 Year to31 January 2016
£'000 £'000 £'000
Investment management fee 2,797 2,976 5,659
Irrecoverable VAT - 26 110
2,797 3,002 5,769
The management fee charged by the Manager is 1.4% of the value of invested
assets and 0.5% of outstanding commitments to funds in their investment
period, in both cases excluding funds managed by Graphite Capital and funds
managed by ICG. No fee is charged on cash or liquid asset balances.
In the periods ended 31 July 2015 and 31 January 2016, the Former Manager
charged a management fee of 1.5% of the value of invested assets and 0.50% of
outstanding commitments to funds in their investment period, in both cases
excluding funds managed by Graphite Capital. No fee was charged on cash and
liquid asset balances.
The allocation of the total investment management charges was unchanged in
2016 with 75% of the total allocated to capital and 25% allocated to income.
At 31 July 2016 management fees of £70,847 were accrued (31 July 2015:
£97,000).
The table below sets out the management charges that the Company has borne in
respect of its investments in funds managed by the Former Manager in periods
when the Former Manager was a related party, and those borne in respect of its
investments in funds managed by the Manager in periods when the Manager was a
related party.
Half year to 31 July 2016 Half year to 31 July 2015 Year to31 January 2016
£'000 £'000 £'000
ICG Europe Fund V 40 * *
ICG Europe Fund VI 37 * *
ICG Europe Fund 2006B - * *
ICG Strategic Secondaries II 51 * *
ICG Velocity Partners Co-Investor - * *
Graphite Capital Partners VI * (99) (120)
Graphite Capital Partners VII * 1 86
Graphite Capital Partners VIII * 812 1,561
128 714 1,527
*not applicable as the manager of this fund was not a related party in the
period
10 RELATED PARTY TRANSACTIONS
Significant transactions between the Company and its subsidiaries are shown
below:
Subsidiary Nature of transaction Half year to31 July 2016 Year to31 January 2016
ICG Enterprise Trust Limited Partnership (Decrease)/Increase in loan to Company (11) 3,549
Income allocated 175 875
ICG Enterprise Trust (2) Limited Partnership Decrease/(increase) in loan from Company 2,445 (2,325)
Income allocated 738 1,284
ICG Enterprise Trust Co-investment LP Increase in loan from Company (1) -
Income allocated - -
Amounts owed by subsidiaries Amounts owed to subsidiaries
Subsidiary 31 July 2016 31 January 2016 31 July 2016 31 January 2016
ICG Enterprise Trust Limited Partnership - - 25,360 25,371
ICG Enterprise Trust (2) Limited Partnership 33,233 35,678 - -
ICG Enterprise Trust Co-investment LP 1 - - -
Amounts owed by subsidiaries represent funding provided by the Company to its
subsidiaries to allow them to make investments. The balances will be repaid
out of proceeds from their portfolios.
The value of subsidiary investments is shown net of an accrual for the
interests of the Co-investors in the co-investment incentive scheme. As at 31
July 2016, £15,579,000 (31 January 2016: £11,939,000) was accrued in respect
of these interests. During the six months to 31 July 2016, the Co-investors
invested £63,000 and received payments of £882,000.
INTERIM MANAGEMENT REPORT AND STATEMENT OF THE DIRECTORS' RESPONSIBILITIES
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company for the second half
of the financial year are substantially the same as those disclosed in the
Report and Accounts for the year ended 31 January 2016.
Going Concern
The factors likely to affect the Company's ability to continue as a going
concern were set out in the Report and Accounts for the year ended 31 January
2016. As at 31 July 2016, there have been no significant changes to these
factors. Having reviewed the Company's forecasts and other relevant evidence,
the Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the
half-yearly financial statements.
Statement of Directors' Responsibilities
The directors confirm that the interim financial statements have been prepared
in accordance with IAS 34 as adopted by the European Union and that the
business review includes a fair review of the information required by DTR
4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during the first
six months of the financial year and their impact on the interim financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
- material related-party transactions in the first six months of the
financial year and any material changes in the related-party transactions
described in the last annual report.
On behalf of the Board
Mark Fane, Chairman
27 September 2016
Glossary
Alternative Performance Measure ("APM")
APMs are a term defined by the European Securities and Markets Authority as
"financial measures of historical or future performance, financial position,
or cash flows, other than a financial measure defined or specified in the
applicable financial reporting framework".
APMs are used in this report 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,
taking into account industry practice. Definitions and reconciliations to IFRS
measures are provided in the main body of the report or in this Glossary,
where appropriate.
Co-investment incentive scheme accrual
The co-investment incentive scheme accrual represents the estimated value of
interests in the co-investment incentive scheme operated by the Company. At
both 31 July 2016 and 31 January 2016, the accrual was estimated as the
theoretical value of the interests if the Portfolio had been sold at its
carrying value at those dates. The annual report for the year ended 31 January
2016 includes further details regarding the operation of the co-investment
incentive scheme.
Drawdowns
Amounts invested by the Company into funds when called by underlying managers
in respect of an existing commitment.
EBITDA
EBITDA stands for earnings before interest, tax, depreciation and
amortisation, which is a widely used valuation measure in the private equity
industry.
Enterprise value
The aggregate value of a company's entire issued share capital and net debt.
Full realisations
Exit events (e.g. trade sale, sale by public offering, or sale to a financial
buyer) following which the residual exposure to an underlying company is zero
or immaterial.
Funds in investment period
Funds in investment period are those funds which are able to make new
investments under the terms of their fund agreements, usually up to five years
after the initial commitment.
Net debt
Net debt is calculated as the total short term and long term debt in a
business, less cash and cash equivalents.
Overcommitment
In order to achieve full or near full investment, it is usual for
fund-of-funds to make commitments exceeding the amount of cash immediately
available for investment. This is described as "overcommitment". When
determining the appropriate level of overcommitment, careful consideration
needs to be given to the rate at which commitments might be drawn down, and
the rate at which realisations will generate cash from the existing portfolio
to fund new investment.
Portfolio
Throughout the Chairman's Statement, Manager's Review and Supplementary
Information, reference is made to the "Portfolio", which represents the
aggregate of the investment portfolios of the Company and of its subsidiary
limited partnerships. This is consistent with the commentary in previous
annual and interim reports. The Board and the Manager consider that this is
the most relevant basis for shareholders in assessing the overall performance
of the Company and for comparison with its peers.
The closest equivalent amount reported on the balance sheet is "investments at
fair value". A reconciliation of these two measures at 31 July 2016 and at 31
January 2016 is presented below.
£000 Investments at fair value as per balance sheet Cash held by subsidiary limited partnerships Balances receivable from subsidiary limited partnerships Co-investment incentive scheme accrual Portfolio
31 July 2016 453,319 -86 +907 +15,579 469,720
31 January 2016 414,107 - +2,127 +11,939 428,173
Post-crisis investments
Post-crisis investments are defined as those completed in 2009 or later.
Pre-crisis investments
Pre-crisis investments are defined as those completed in 2008 or before, based
on the date the original deal was completed, which may differ from when the
Company invested if acquired through a secondary.
Realisation proceeds
Amounts received by the Company in respect of the Portfolio, which may be in
the form of capital proceeds or income such as interest or dividends.
Total return
Total Return is a performance measure that assumes the notional re-investment
of dividends. This is a measure commonly used by the listed private equity
sector and listed companies in general. In this report:
- net asset value per share Total Return is calculated as the change in
the Company's net asset value per share, assuming that dividends are
re-invested at the end of the quarter in which the dividend was paid;
- share price Total Return is calculated as the change in the Company's
share price, assuming that dividends are re-invested on the day that they are
paid; and
- FTSE All-Share Index Total return is calculated as the change in the
level of the Index, assuming that dividends are re-invested on the day that
they are paid.
The tables below set out the share price and the net asset value per share
growth figures for periods of 1, 3, 5 and 10 years to the balance sheet date,
on both an unadjusted basis (i.e. without dividends re-invested) and on a
Total Return basis.
Unadjusted performance in years to 31 July 2016 1 3 5 10*
Netassetvaluepershare 14.0% 17.0% 37.6 90.6%
Shareprice 0.3% 21.1% 51.0% 61.6%
FTSE All-ShareIndex 0.0% 4.1% 20.7% 23.1%
Total Return performance in years to 31 July 2016 1 3 5 10*
Netassetvaluepershare 15.6% 24.1% 48.3% 115.6%
Shareprice 2.3% 29.9% 65.9% 89.3%
FTSE All-ShareIndex 3.8% 15.5% 44.1% 75.6%
*As the Company changed its year end in 2010, the ten year figures are for the
121 month period to 31 July 2016.
Underlying valuation movement
The change in the valuation of the Company's Portfolio, before the effect of
currency movements.
Undrawn commitments
Undrawn commitments are commitments that have not yet been drawn down (see
definition of drawdowns).
Uplift on exit
Uplift on exit represents the increase in gross value relative to the
underlying manager's most recent valuation prior to the announcement of the
disposal. Excludes a small number of investments that were public throughout
the life of the investment. May differ from uplift in the reporting period in
certain instances.
Copies of the Interim Report will be available on the Company's website
(www.icg-enterprise.co.uk) in October and posted to shareholders who have
elected to receive a paper copy. Copies may be obtained during normal business
hours from the Company's registered office thereafter.
For further information please contact:
Emma Osborne Head of Private Equity Fund Investments 020 3201 1302
Mark Crowther Investor Relations 020 3201 7842
Michael Pote Finance 020 3201 1307
END
This information is provided by RNS
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