28 Apr 2020

2020 year end results

STRONG PORTFOLIO PERFORMANCE DELIVERS DOUBLE DIGIT GROWTH FOR THE YEAR

Continued short, medium and long-term outperformance of public markets

Performance to 31 January 2020 1 year 3 year 5 year 10 year*
Net asset value per share (total return) 11.2% 40.6% 85.0% 190.5%
Share price (total return) 20.5% 49.1% 92.6% 286.1%
FTSE All-Share Total Return 10.7% 18.4% 35.6% 111.2%

*As the Company changed its year end in 2010, the ten-year figures are for the 121-month period to 31 January 2020.

Highlights:

  • NAV per share of 1,152p - total return of 11.2% in the year
    - Growth driven by strong EBITDA growth and realisation uplifts
  • 11th consecutive year of double-digit underlying Portfolio growth
    - 16.6% constant currency return from the investment Portfolio; 14.6% return in sterling
    - 17% average LTM earnings growth from Top 30 Companies; 46% of the Portfolio
  • Strong period for realisations with selective new investment
    - £149m of proceeds received, equivalent to 20% of opening portfolio value
    - Realisations at 37%1 uplift to carrying value; 2.4x1 multiple to cost; consistent with five-year average
    - £159m of new investment; 39% into high conviction investments
    - Four co-investments completed; one alongside ICG and three alongside third party managers
    - £156m committed to 12 primary funds; five new relationships
  • Portfolio well diversified - weighted towards larger companies and more resilient sectors
    - Focus on defensive growth means Portfolio is weighted towards more resilient sectors, such as healthcare, consumer staples, business services and technology
    - Portfolio is invested in larger companies in Europe and the US; bias to managers who have strong operational focus and demonstrable experience of successfully managing investments through economic cycles
    - ICG managed investments now represents 22% of the Portfolio; invested across the capital structure in companies with resilient business models
  • Impact of COVID-19 on Portfolio companies
    - Situation is continually evolving, and we are working closely with our underlying managers, who have moved decisively to address immediate risks and implement plans to protect and preserve value
    - We believe the diversified and resilient nature of the Portfolio is well placed to navigate the challenges ahead
    - Performance and speed of recovery will vary between geographies, sectors and companies and will be dependent on business models, end markets and government policy
  • Sharp decline in public markets and economic fall-out from COVID-19 likely to impact Net Asset Value in the short term
    - The Net Asset Value at January 2020 is based on valuations which preceded the current crisis
    - We expect recent falls in public markets and the broader consequences of COVID-19 to impact valuations in the coming months and we anticipate the rate of realisations from the Portfolio to slow
    - We will provide shareholders with an update in the announcement of our NAV as at 30 April 2020 in June
  • Balance sheet and liquidity
    - Closing net asset value of £794m; investment portfolio represents 102% of net asset value
    - £162m total liquidity (including £14m of cash and £148m undrawn bank facility); uncalled commitments of £459m of which £82m are to funds outside their investment periods
                 - New €176m (£148m) bank facility signed during the year
    - To provide increased flexibility, £40m was drawn from our bank facility in March, taking total gross cash balances to £56m at 23 April 2020
  • Annual dividend of 23p and buybacks
    - Final dividend of 8p, taking total dividends for the year to 23p
    - 4.5% increase on previous year and 2.4% yield on year end share price
    - £3m of shares bought back in year; a further £1m purchased since the year end

Oliver Gardey, Head of Private Equity Fund Investments, ICG, commented:
“The portfolio delivered strong underlying returns in the year, extending the record of double-digit growth to 11 consecutive years. We continued to deploy capital selectively into companies with strong defensive characteristics in sectors with non-cyclical growth drivers and build new relationships with leading managers both in the US and Europe. We are especially pleased with the progress made in increasing our portfolio weighting to the US in line with our long-term strategic objectives.

“While the current economic conditions are uncertain, our portfolio is weighted towards more resilient and defensive companies. We invest with leading managers in the US and Europe, focused on mid-market and larger buyouts, with a bias towards those with strong in-house operating teams and capital markets specialists. In the weeks since the COVID-19 crisis unfolded, we have seen some of the benefits of the private equity model, with managers acting quickly and decisively to preserve and protect value. We believe the private equity model is well suited to dealing with current market conditions and are confident that our managers will adapt to future events and continue to grow value.

“Our flexible mandate, and in particular our high conviction approach, allows us to be nimble and adapt the mix of new investment to evolving market conditions. While in the short term, we do not expect to see significant new investment activity, when markets stabilise we are well placed to benefit from more favourable entry valuations and take advantage of the opportunities as they arise.

“Finally, it goes without saying that a key priority for us is the wellbeing and safety of our staff; they are the most important part of our business and we have taken the necessary actions to protect our employees, as well as maintaining business continuity.”

Share price (ICGT)

912p
-6.00P (-0.65%)
4:41AM 1 Dec 2020
The share price information is delayed by at least 15 minutes

Net Asset Value

1,127p
As of 31 July 2020
Next update: January 2021 – Q3 results
Year Net assets NAV per share Share price Dividends per share
Jan 2020 £794m 1,152p 966p 23p
Jan 2019 £731m 1,057p 822p 22p
Jan 2018 £664m 959p 818p 21p
Jan 2017 £613m 871p 698p 20p
Jan 2016 £521m 731p 545p 11p
Jan 2015 £507m 695p 575p 15.5p
Jan 2014 £494m 677p 563p 15.5p
Jan 2013 £460m 631p 487p 5p
Jan 2012 £415m 569p 357p 5p
Jan 2011 £389m 534p 308p 2.25p
Dec 2009 £338m 464p 305p 2.25p
Dec 2008 £327m 449p 187p 4.5p

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