Intermediate Capital Group's (ICG) Fund Management Company (FMC) saw assets under management (AUM) rise by 2% from €11.8bn to €12bn in the first half despite the sterling strengthening against the euro, which negatively affected AUM by 3%.
However, the specialist investment firm, asset manager and mezzanine finance provider warned that the volatility in capital markets and the uncertainty in the economic outlook will likely result in a lower level of realisation in the second half.
The group reported a pre-tax profit of £108.8m in the six months ended 30 September, up from £81.2m in the second half of last year, and higher than the £105.1m in the first half of last year. Earnings per share rose from 17.2p to 21.6p.
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Operating expenses rose from £23.3m to £28m mainly due to more staff in its marketing and distribution team as well as the roll-out of the new remuneration scheme.
Cash core income jumped from £43.8m to £63.3m. The board maintained its interim dividend of 6p per share.
"We are pleased to announce another solid set of results which is evidence of the strength of our investment portfolio and fund management franchise. Given the uncertain economic outlook we remain focused on preserving our strong performance track record," said chief executive officer Christophe Evain.
Nevertheless, in the group's outlook, it warned that it will be "highly selective when it comes to new investment" due to uncertainties in the economic environment. "We will use our extensive local network, deep relationships and existing portfolio to invest in new transactions where we see the best value," the statement said.
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