LEI: 213800NNT42FFIZB1T09
27 June 2024
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THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION. FOR IMMEDIATE RELEASE
Full year results for the
financial year ended 31 March 2024
Strong earnings momentum;
guidance to double core EBITDA pre-SBP over the next 5
years
Foresight Group Holdings Limited
("Foresight", the "Group"), a leading investment manager in real
assets and providing capital for growth, is pleased to announce its
full year results for the financial year ended 31 March 2024
("FY24", "the period").
Financial and Operational Highlights
|
31 March
2024
|
31 March
2023
|
Change
|
Year-end AUM (£m)
|
12,144
|
12,167
|
-0.2%
|
Year-end FUM (£m)
|
8,397
|
9,022
|
-7%
|
Total Revenue (£m)
|
141.3
|
119.2
|
+19%
|
Recurring Revenue (% of
Total)
|
86.6%
|
86.6%
|
0
pts
|
Core EBITDA pre-SBP
(£m)
|
59.3
|
50.2
|
+18%
|
Dividend per Share
(pence)
|
22.2p
|
20.1p
|
+10%
|
Core EBITDA pre-SBP margin
(%)
|
42.0%
|
42.1%
|
-0.1
pts
|
Profitability
Core EBITDA pre-Share Based Payments
("SBP") increased 18% in the year to £59.3 million (FY23: £50.2
million):
· Driven
by successful prior year and FY24 fundraising into higher margin
and long tenure investment vehicles, the annualisation of FY23
acquisition activity and effective cost management
Core EBITDA pre-SBP margin was
broadly flat at 42.0% (FY23: 42.1%):
· 43%
achieved in the second half of the year, in line with medium term
target set at IPO
AUM/FUM
In the period, Assets under
Management ("AUM") and Funds under Management ("FUM") decreased
modestly against the backdrop of challenging market conditions to
£12.1 billion and £8.4 billion respectively (FY23: £12.2 billion
AUM and £9.0 billion FUM):
· On a
constant currency basis, AUM increased to £12.3 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 £122 million
o Adverse foreign exchange movement of £197 million
Revenue
Strong growth of £22.1 million, an
increase of 19% on the prior year to £141.3 million (FY23: £119.2
million):
· £12.5
million from organic growth and an improved FuM mix
· £9.6
million related to acquisition activity
High quality revenue visibility
maintained, with recurring revenue within target range of
85-90%.
Capital Allocation
To support the Group's aim to grow
shareholder returns alongside core EBITDA pre-SBP the Board is
recommending the payment of a 15.5p final dividend, in line with
the prior year and leading to a 10% year on year increase in the
total dividend to 22.2p (FY23: 20.1p). The final dividend will be
paid on 4 October 2024 with an ex-dividend date of 19 September
2024 and a record date of 20 September 2024.
In addition, the Group has also
extended its buyback programme from £5 million to £10 million,
which the Board believes is an optimal use of existing cash
resources.
Sustainability
During the period the Group
performed a double materiality assessment based on both the
International Sustainability Standards Board (ISSB) as well as the
European Sustainability Reporting Standards (ESRS). The outputs of
the assessment led to a gap analysis and action plan that will
shape Foresight's sustainability strategy for the next three years,
as set out within the Group's FY24 Sustainability
Report.
Updated Guidance
Looking ahead, the Group is updating
its growth guidance to double core EBITDA pre-SBP over the next 5
years.
This guidance will be delivered
organically, building on the materially larger business foundations
that the Group has today, with a 5-year horizon allowing time to
launch multi vintages of a number of our highly scalable
infrastructure strategies.
In favourable equity markets,
accretive M&A will remain a focus but will be incremental to
guidance and seen as an additional accelerator of
growth.
Alongside the delivery of growth
guidance, the Group will continue to:
· Target
the existing range of 85-90% recurring revenue, providing good
visibility
· Expand
profit margin as the business scales
· Pay
dividends of 60% of adjusted profit after tax before non-underlying
items
Current Trading1
AUM and FUM are both estimated to
have increased by c.£0.5 billion in Q1 FY25 to c.£12.6 billion and
c.£8.9 billion respectively, driven by a €300 million first close
for Foresight Energy Infrastructure Partners II SCSp ("FEIP II")
and a strong quarter for retail fundraising.
In addition,
we have agreed to invest in the
construction, financing, and commissioning of a c.€300 million, 267
MW Solar PV portfolio in Greece. As part of this investment, we
leveraged our expertise to originate, source co-investment and
arrange financing, underscoring the growing reputation and
comprehensive capabilities of our infrastructure division. This
investment also represents an expansion of our geographic
footprint, with a new local presence being established in
Athens.
The Group's Private Equity business
also completed four exits in Q1 FY25 with an initial investment of
£17 million returning £66 million in sales proceeds.
Outlook
Foresight is confident that the
momentum behind its scalable energy transition and wider
decarbonisation strategies, alongside the strength of its higher
margin private equity and tax efficient product strategies, will
support continued core EBITDA pre-SBP growth. Specific drivers for
FY25 include:
· The
full year benefit of recurring revenues generated by FY24
growth
· Multiple fundraising opportunities across the Group's scalable
institutional infrastructure strategies
· Consistent fundraising from the Group's well-established
retail distribution platform
· The
continued expansion of the Group's regional private equity
strategy
Bernard Fairman, Executive Chairman of Foresight Group
Holdings Limited, commented:
"We have delivered another strong year of profitable growth as
the Group benefitted from increasing demand for our higher margin
retail vehicles and successful institutional fundraising activity
from our private equity business.
We
have carried this strong earnings momentum into the current
financial year, having already delivered c.£500 million in AUM
growth in Q1 FY25. This increase was driven by the combination of
further success in retail fundraising and the recent €300 million
first close of our flagship energy transition fund, FEIP II,
following improving sentiment in the institutional infrastructure
fundraising market.
Having achieved significant profitable growth since listing on
the London Stock Exchange in 2021, we are today updating our growth
guidance to double core EBITDA pre-SBP over the next 5 years.
Delivery will be underpinned by our long established, highly
profitable regional private equity and retail tax efficient
products, alongside our highly scalable infrastructure and FCM
strategies. Combined, these strengths give us confidence that our
diversified business model will continue to create meaningful
shareholder value in FY25 and beyond."
Annual Report and Sustainability Report
A copy of the FY24 Annual Report has
been submitted to the National Storage Mechanism and will shortly
be available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The Annual Report and Sustainability
Report are also available on the Group's website at
FY24 Annual
Report and Sustainability Report where further information on Foresight can be
found.
Analyst Presentation
Foresight's management team is
hosting a virtual analyst presentation followed by Q&A at 8.30
a.m. BST today, Thursday 27 June 2024. It will be hosted by Bernard
Fairman (Executive Chairman) and Gary Fraser (CFO). Those wishing
to join the webcast should
register here.
A recording of the presentation will
be made available on the Group's website shortly after the
event.
Retail Investor Presentation via Investor Meet
Company
Foresight is also hosting an
investor presentation via Investor Meet Company on Friday 28 June
at 9.00 a.m. BST. The presentation is open to all existing and
potential shareholders and will be hosted by Gary Fraser (CFO).
Questions can be submitted pre-event via the Investor Meet Company
dashboard up until 9.00 a.m. the day before the meeting or at any
time during the live presentation.
Investors can sign up to Investor
Meet Company for free and register to meet Foresight
via:
https://www.investormeetcompany.com/foresight-group-holdings-limited/register-investor
Investors who already follow
Foresight on the Investor Meet Company platform will automatically
be invited.
Notes:
1. Please
note that Q1 FY25 figures contained in this announcement are
unaudited and subject to change.
Foresight Group Investors
|
H-Advisors Maitland
|
Liz Scorer / Ben McGrory
|
Sam Cartwright / Genevieve
Ryan
|
+44 (0) 7966 966956 / +44 (0) 7443
821577 ir@foresightgroup.eu
|
+44 (0) 782 725 4561 / +44 (0) 781
710 5562 Foresight@h-advisors.global
|
About Foresight Group Holdings Limited
Founded in 1984, Foresight is a
leading investment manager in real assets and capital for growth,
operating across the UK, Europe, and Australia.
With decades of experience,
Foresight offers investors access to attractive investment
opportunities at the forefront of change. Foresight actively builds
and grows investment solutions to support the energy transition,
decarbonise industry, enhance nature recovery and realise the
economic potential of ambitious companies.
A constituent of the FTSE 250 index,
Foresight's diversified investment strategies combine financial and
operational skillsets to maximise asset value and provide
attractive returns to its investors. Its wide range of private and
public funds is complemented with a variety of investment solutions
designed for the retail market.
Foresight is united by a shared
commitment to build a sustainable future and grow thriving
companies and economies.
Visit https://foresight.group
for more information.
Follow us on LinkedIn for key
updates.
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 2024. 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.