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16 Nov 2022 07:00
Bridgepoint Group plc
("Bridgepoint" or the "Company", and together with its subsidiaries the "Group")
Trading statement: Resilient progress across the Group and guidance for FY 2022 unchanged
Despite more challenging macro conditions, Bridgepoint is pleased to report that it remains on track against key targets for 2022.
Capital raising
Capital raising for Bridgepoint's equity and credit businesses continues to make progress, reflecting the attractions of the well-balanced portfolios Bridgepoint constructs which have a good track record of delivering attractive returns from growth investment niches through cycles. In particular:
• | Bridgepoint Europe VII is on track to complete its fund raise in H1 2023 with the Fund expected to hold its formal second closing in Q1 2023 with some investors wishing to draw capital from their 2023 annual allocations |
• | The Fund continues to enjoy strong interest from investors. As noted previously, the broader fund raise market is affected by the well documented denominator effect with falling quoted portfolio valuations impacting portfolio weightings. This is extending most current fund raising processes |
• | Both Bridgepoint Credit and Bridgepoint Growth fund raising programmes are also making good progress |
Portfolio valuation
Following its September portfolio and valuation review, the Group can confirm that its investment portfolios are trading largely in line with expectations set at the start of the year despite current macro volatility:
• | Bridgepoint's equity portfolios comprise mainly high margin, cash generative, growth companies (for example, 29% EBITDA/revenue average margin in BE VI) |
• | Equity portfolios have currency hedging covering some 78% of non-Euro exposures |
• | Rate hedging is in place for 69% of equity fund interest costs |
• | Funds have limited exposure to the UK (comprising only 2.5% of BE VI assets, for example) |
• | Bridgepoint funds also have limited exposure to assets driven by discretionary spending |
• | Portfolio companies have been impacted by rising energy costs, but Bridgepoint portfolios, as a whole, do not comprise businesses with high energy use and energy costs represent on average less than 2% of portfolio company revenues |
These attributes were reflected in Q3 valuations which are in line with expectations, with underlying profit growth within portfolios compensating for the fall in valuation multiples across different sectors.
Current trading and outlook
The Group also reports that:
• | Whilst exits across the market have been more challenging during the second half of the year, it remains on track to hit budgeted realisations for 2022 with two major exits signed in Q3 at valuations ahead of expectations |
• | Capital commitments in all funds are in line with expectations with BE VII having now committed some 10% of fund capital since the start of the investment period in mid-May 2022 |
• | Bridgepoint Credit continues to perform well against its targets for 2022 |
• | Portfolio exit plans for 2023 are unchanged but execution will be dependent on market conditions |
• | A number of strategic projects remain under review. However, the Group currently remains cautious in evaluating acquisitions as valuation metrics re-calibrate |
In the context of the above, Bridgepoint's financial guidance for 2022 remains unchanged and the Group's outlook for 2023 financial performance remains positive.
ENQUIRIES
Bridgepoint
Analysts and investors Adam Key adam.key@bridgepoint.eu +44 7833 748010
| Media James Murray james.murray@bridgepoint.eu +44 20 7034 3500 |
Finsbury Glover Hering (Public Relations Adviser to Bridgepoint)
Charles O'Brien / +44 20 7251 3801 / +44 7825 043 656
Anjali Unnikrishnan / +44 20 7251 3801 / +44 7826 534 233
bridgepoint@fgsglobal.com
Legal Entity Identifier (LEI): 213800KFNMVI8PDZX472
Forward looking statements
This announcement may include forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", "believes", "expects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. These forward-looking statements reflect, at the time made, the beliefs, intentions and current targets/aims of Bridgepoint Group plc. Forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The forward-looking statements in this announcement are based upon various assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Forward-looking statements are not guarantees of future performance and such risks, uncertainties, contingencies and other important factors could cause the actual outcomes and the results of operations, financial condition and liquidity of the Company, its subsidiary undertakings or the industry to differ materially from those results expressed or implied in this announcement by such forward-looking statements. No representation or warranty, express or implied, is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. Undue influence should not be given to, and no reliance should be placed on, any forward-looking statement. No statement in this announcement is intended to be nor may be construed as a profit forecast. Neither the Company, nor any of its subsidiaries nor any of their affiliates, nor any of its or their officers, employees, agents or advisers, undertake to publicly update or revise any such forward-looking statement, except to the extent required by applicable law.
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