Strong portfolio performance delivers double digit growth
Highlights
- NAV per share of 1,057p - total return of 12.4%1 in the year
- Growth driven by strong profit growth and realisation uplifts
- 10th consecutive year of double digit underlying Portfolio growth
- 15.0%1 constant currency return on the investment Portfolio; 16.6%1 return in sterling
- 16% average LTM earnings growth from Top 30 Companies; 46% of the Portfolio
- Top 30 Dominated by high conviction investments
- £163m of proceeds received
- Realisations at 35%1 uplift to carrying value; 2.4x1 multiple to cost
- Continued selective investment into compelling opportunities
- £158m of new capital deployed; 50% into high conviction investments
- Focus remains on defensive growth, structural downside protection and relative value
- Five co-investments completed; two alongside ICG and three alongside third party managers
- £162m committed to 10 primary funds; four new relationships
- Strategic benefits of move to ICG continue to add significant value
- ICG managed investments now represents 20% of the Portfolio
- Flexible mandate to invest across the capital structure providing downside protection
- Continued geographic diversification; US now represents 26% of the Portfolio
- Further realisations since the year end and a strong pipeline of new opportunities
- £19m of distributions and £12m of calls paid1
- Commitments to two new US mid-market manager relationships and one existing European manager
- $20m commitment to AEA Investors, $15m to Gryphon Investors and €20m to Cinven VII
- Strong balance sheet
- Closing net asset value of £731m; investment portfolio represents 95% of net asset value
- Cash balance of £61m; uncalled commitments of £411m
- £211m total liquidity (including £150m undrawn bank facility)2
- New €176m (£150m) bank facility agreed; more favourable terms and matures in two equal tranches in April 2021/2022
- Enlarged facility further strengthens financial position and provides greater flexibility to take advantage of investment opportunities
- Annual dividend of 22p
- Final dividend of 7p, taking total dividends for the year to 22p
- 4.8% increase on previous year and 2.7% yield on year end share price
- Continued short, medium and long-term outperformance of public markets
| Performance to 31 Jan 2019 | 1 year | 3 years | 5 years | 10 years* |
|---|---|---|---|---|
| Net asset value per share | 12.4% | 53.7% | 74.7% | 172.9% |
| Share price | 3.0% | 62.8% | 67.2% | 431.1% |
| FTSE All-Share Index (total return) | -3.8% | 28.5% | 31.2% | 148.3% |
All performance figures are stated on a total return basis (i.e. including the effect of re-invested dividends)
*As the Company changed its year end in 2010, the ten-year figures are for the 121-month period to 31 January 2019.
1 Alternative Performance Measure
2 As at 31 March 2019
Emma Osborne, ICG, commented:
"The portfolio has delivered its 10th consecutive year of double digit underlying growth, driven by continued strong profit growth and valuation uplifts on realisations.
Against the current backdrop of high valuations for new investments and continuing macro uncertainties we remain highly selective in redeploying cash generated by the portfolio. We have a strong pipeline of new opportunities and believe the portfolio is well positioned to continue to generate shareholder value."