Intermediate Capital has 'solid' half

Lower impairments and a much stronger investment portfolio were behind a sharp increase in half-year profit at mezzanine finance specialist Intermediate Capital.It posted a profit before tax of £105.1m for the six months ended 30 September compared with just £8.1m a year ago and £97.7m in the second half of the last financial year. Gains on investments ballooned to £86.8m from £4.4m, though fee income fell to £39.1m from £41.5m.Gross provisions for impairments of portfolio companies fell to £54.3m from £99.4m in the first half of last year.Investment company profits, including fair value movement on derivatives, soared to £88.2m from a loss of £14.7m twelve months ago. It made £82.5m in the second half.The fund management company grew profit to £16.9m from £15.2m in the second half, though it was down on last year's £22.8m, partly due to lower fee income.Assets under management at the end of the period were €11.7bn, up from €11.2bn on the 31 March. The new Eos Loan Fund 1 added €902m."Continuing high levels of realisations and lower impairment charges have benefitted the results of our investment company and the performance of our funds," chief executive Christophe Evain said. "The recovery in deal activity has gained pace in the past few months."