Profit surges at Intermediate Capital

Finance specialist Intermediate Capital said annual pre-tax profit rose 76% after a marked improvement in the performance of its investments. The private equity and mezzanine finance-focused investor and fund manager posted a strong performance across the investment portfolios with 74% of portfolio companies performing at or above the prior year compared to 59% in 2010. Group pre-tax profit rose to £186m in the year ended 31 March 2011 from £106m in 2010. Fund management pre-tax profit rose to £36m from £31m previously excluding a £7m one-off release of accrued costs. Investment company profit before tax rose 122% to £150m as a result of lower provisions, additional writebacks and higher capital gains. CEO Christophe Evain said, "This has been a great year for ICG and one of the most profitable in our 22 year history and well ahead of our earlier expectations." "We have seen a marked improvement in the performance of our investments, realised significant value via 13 exits and increased our investment activity, investing a total of £1bn in several proprietary deals. We have also taken further steps to grow our Fund Management Company." Third party assets under management increased to £8bn from £7.3bn. Net cash rose to £140.9m from £83.7m in 2010.A final dividend of 12p per share has been offered, up 6% from 17 pence last year.