Intermediate Capital Share Price (ICP)

Positive Points: The group said its mezzanine portfolio performance continued to be broadly resilient, despite the challenging economic environment. ICG closed two deals in the period with its European Fund V supporting a management led buyout of ATPI (a UK travel based management company) and acquiring senior debt in an existing portfolio company - Icopal. Furthermore, two other deals were signed, one in the UK and one in Norway, which are expected to complete before the year end, subject to regulatory approvals. ICG also reported that its credit funds' performance are as expected, delivering strong returns in the context of a rising market. A strong balance sheet was reported by management with available cash and unutilised bank lines of £406 million at 31 December 2012. A progressive dividend policy continues to be pursued. When interim results were declared in November 2012, the Board declared an interim dividend of 6.3 pence per share.

Negative Points: The present volatile market conditions could impact on ICG's investment and fundraising activities. A marked deterioration in economic conditions would impact on group performance. The company has substantial exposure to euro-denominated assets.

Interim management statement: In a brief update, specialist asset manager ICG announced a 7% growth in assets under management since the end of September, and a 13% rise since the start of the financial year to 12.9 billion euros, driven by good progress in fundraising for its mezzanine funds. Fundraising on ICG Europe Fund V was seen at its maximum permitted size of €2.5 billion, and a first close of £212 million on ICG-Longbow Fund III was reported. These numbers included €500 million and £50 million, respectively, committed by ICG. Management added that its credit funds are performing as expected and delivering strong returns, notwithstanding a mixed macro picture for 2013. Elsewhere, within its investment company business segment, the group stated its portfolio performance remained broadly resilient, mindful of the prolonged economic slowdown

"We are announcing some pleasing progress for our Fund Management Company. The fundraising for ICG Europe Fund V, which is already 15% ahead of our €2bn target at €2.3bn, will result in this fund being our largest ever mezzanine fund and the largest fund of its type in Europe. This is a considerable achievement in a very difficult fund raising environment and supports our ambition to grow our fund management franchise. "Institutional investors are increasing allocations to credit as they recognise the contribution this asset class can make to the overall yield of their portfolio. We are confident that this trend will continue. The success of ICG Europe Fund V, with a highly diversified global investor base, is an endorsement of our strong position in the credit markets and evidence that our recently enhanced distribution capabilities are already delivering benefits." The group said that in the first six months of the financial year it invested £469m on behalf of the mezzanine funds and ICG, which is more than the £406m invested in the whole year to March 31st 2012.

intermediate Capital Group, the specialist investment firm and asset manager, has reported a significant drop in half year group pre-tax profit (PTP) as a result of the difficult economic climate, but still announced a 0.3p increase in the dividend payment to 6.3p. Although fund management company PTP edged £0.1m higher to £17.2m in the six months ended September 30th, investment company PTP declined from £91.7m to £22.4m, giving overall PTP of £39.6m (2011: £108.8m). Earnings per share more than halved from 21.6p to 10.3p. In addition to the economy, the group also attributed the reduction to PTP to a slow exit market, which it said has resulted in a low level of realised capital gains. It also took material provisions for two large assets which are undergoing restructurings. The investment portfolio was also lower, decreasing from £2,414m to £2,344m year-on-year, while third party assets under management fell from €9,165m to €9,127m over the same period. However, assets under management rose 6.0% to €12.1bn in the first half of the year, up from €11.4bn at March 31st, with continued momentum into the second half. This includes €9.1bn in third party funds. Chief Executive Officer Christophe Evain, said: "The difficult economic climate has negatively impacted our results for the period, leading to provisions for two large assets and a low level of realisations. The remainder of the portfolio is broadly resilient but the economic environment remains volatile.

Positive Points: Fundraising within ICG's Europe Fund V was reported as above target, with €2.3bn of commitments received to date. The group said that this will result in this fund being its largest ever mezzanine fund and the largest fund of its type in Europe. A strong balance sheet was reported by management with unutilised debt facilities of approximately £442 million following a further £80 million retail bond issue in September. A progressive dividend policy continues to be pursued. The Board has declared an interim dividend of 6.3 pence per share in the latest period.