LEI: 213800NNT42FFIZB1T09
11 April 2024
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THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION. FOR IMMEDIATE RELEASE
Trading update for the
financial year ended 31 March 2024
Significant year-on-year
growth in core EBITDA pre-SBP
Foresight Group Holdings Limited
("Foresight", the "Group"), a leading infrastructure and private
equity investment manager, announces its trading update for the
financial year ended 31 March 2024 ("FY24", "the
period").
Financial and Operational
Highlights1
Profitability
We expect FY24 core EBITDA pre-Share
Based Payments ("SBP") to be in line with market expectations (FY24
consensus range: £58.3 million - £60.3 million)2,
representing strong year-on-year growth (FY23: £50.2 million). This
performance was supported by successful prior year and FY24
fundraising into higher margin and long tenure investment vehicles,
the annualisation of FY23 acquisition activity and the maintenance
of cost discipline as we invested in our future fundraising
pipeline.
AUM/FUM3
In the period, Assets under
Management ("AUM") and Funds under Management ("FUM") decreased
modestly against the backdrop of challenging market conditions to
£11.9 billion and £8.4 billion respectively (FY23: £12.2 billion
AUM and £9.0 billion FUM). On a constant currency basis, AUM
decreased to £12.1 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 £123 million
o Adverse foreign exchange movement of £197 million
o Downward valuation adjustments to infrastructure assets of
£176 million, predominantly on traditional infrastructure
assets
Revenue
High quality revenue visibility
maintained, with recurring revenue within our target range of
85-90%.
Outlook
We are confident that the momentum
behind our scalable energy transition strategies and the strength
of our higher margin strategies will support continued core EBITDA
pre-SBP growth, with specific drivers for FY25
including:
· FY24
fundraising into higher margin vehicles and the resulting FUM
mix
· The
quality of our retail distribution platform which continues to
deliver fundraising success across our higher margin retail
vehicles
· A
robust institutional infrastructure fundraising pipeline with
encouraging investor demand for the second vintage of
our flagship energy transition strategy, Foresight
Energy Infrastructure Partners ("FEIP") II. This provides
confidence that a first close will be achieved in the near
term
Bernard Fairman, Executive Chairman of Foresight Group
Holdings Limited, commented:
"We
are pleased to announce a strong performance in FY24 as the Group
benefitted from increasing demand for our higher margin retail
vehicles and successful institutional fundraising activity from our
private equity business. Whilst reporting a modest decrease in
AUM/FUM in the period, we are well placed to achieve profitable
growth in FY25 in line with current market
expectations.
As
an international investment manager, we bring investors closer to
the opportunities driving the transition to cleaner energy,
decarbonised infrastructure and the economic potential of growth
companies. Our extensive track record of identifying and then
maximising the value of attractive investment opportunities means
that our products are well positioned to attract institutional and
retail investors within our key markets.
As
we enter our new financial year, we are very encouraged by
improving sentiment in the institutional infrastructure fundraising
market and in particular by the positive reception to the second
vintage of our flagship energy transition strategy (FEIP II). We
are confident in the ability of our diversified business model to
continue to deliver strong profitable growth."
FY24
Results Announcement
Foresight's Full Year Results to 31
March 2024 are scheduled to be released on Thursday 27 June 2024,
with a presentation for analysts on the same day. Details on how to
attend the presentation will be available on
https://www.foresightgroup.eu/shareholders
in due course.
Notes:
1. Please
note that all figures contained in this announcement are unaudited
and subject to change.
2. As at 1
December 2023, the average consensus estimate for FY24 core EBITDA
pre-SBP was £59.3 million, with a range of £58.3 million to £60.3
million.
3. AUM and
FUM movement:
|
|
Last 3
months
|
Last 12
months
("LTM")
|
Constant currency basis
(LTM)
|
(£ billion)
|
31 Mar 2024
|
31 Dec 2023
|
Change %
|
31 Mar 2023
|
Change %
|
31 Mar 2024
|
Change %
|
|
(a)
|
(b)
|
(a/b)
|
(c)
|
(a/c)
|
(d)
|
(d/c)
|
AUM
|
11.9
|
12.4
|
(4)%
|
12.2
|
(2)%
|
12.1
|
(1)%
|
FUM
|
8.4
|
8.8
|
(4)%
|
9.0
|
(7)%
|
8.5
|
(6)%
|
|
|
|
|
|
|
|
|
|
Percentage movements are calculated
on underlying numbers.
AUM
(£ billion)
|
31 Mar 2024
|
31 Dec 2023
|
Change %
|
Infrastructure
|
9.6
|
10.0
|
(4)%
|
Private Equity
|
1.6
|
1.5
|
+4%
|
FCM
|
0.7
|
0.9
|
(19)%
|
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
Foresight Group was founded in 1984
and is a leading listed infrastructure and private equity
investment manager. With a long-established focus on ESG and
sustainability-led strategies, it aims to provide attractive
returns to its institutional and private investors from
hard-to-access private markets. Foresight manages over 400
infrastructure assets with a focus on solar and onshore wind
assets, bioenergy and waste, as well as renewable energy enabling
projects, social and core infrastructure projects and sustainable
forestry assets. Its private equity team manages an extensive
footprint of regionally focused investment funds across the UK and
Ireland. This team reviews over 3,000 business plans each year and
currently supports more than 250 investments in SMEs. Foresight
Capital Management manages four strategies across seven investment
vehicles.
Foresight operates in eight
countries across Europe, Australia and United States with AUM of
£11.9 billion*. Foresight Group Holdings Limited listed on the Main
Market of the London Stock Exchange in February 2021 and is a
constituent of the FTSE250 index. https://www.foresightgroup.eu/shareholders
*Based on unaudited AUM as at 31
March 2024.
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 2023. 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.