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Highlights
- Core EBITDA Growth: Increased by 5% to £29 million, on track to double over five years.
- AUM and FUM Expansion: Assets under Management rose to £12.4 billion, driven by strategic fundraising.
- Dividend Growth: Interim dividend increased to 7.4 pence per share.
Foresight Group Holdings Limited (LSE:FSG), a leader in real assets and growth capital investment management, announced strong results for the six months ending September 30, 2024. Core EBITDA pre-Share Based Payments (SBP) grew by 5% to £29 million, up from £27.6 million in H1 FY24. This performance reflects successful fundraising efforts in higher-margin, longer-tenure vehicles and aligns with the Group’s goal to double core EBITDA over five years.
Steady Asset Growth and Recurring Revenue
The Group reported an increase in Assets under Management (AUM) to £12.4 billion (FY24: £12.1 billion) and Funds under Management (FUM) to £8.7 billion (FY24: £8.4 billion). Key AUM movements during the period included:
- A €300 million first close for Foresight Energy Infrastructure Partners II (FEIP II), the Group’s flagship energy transition strategy.
- £241 million raised in high-margin retail vehicles.
- Positive investment performance of £56 million by Foresight Capital Management, alongside a slowdown in net outflows to £111 million.
Recurring revenue remained high at 87%, comfortably within the Group’s target range of 85-90%.
Private Equity Performance and Fundraising Success
Foresight’s Private Equity division generated £4.3 million in performance fees from its regional and Venture Capital Trust (VCT) vehicles. Furthering its momentum, the division secured a £50 million first close for the Foresight South West Fund post-period.
Dividend Growth and Strong Shareholder Returns
The Board extended its robust dividend policy by declaring an interim dividend of 7.4 pence per share, up from 6.7 pence in H1 FY24. The dividend will be paid on January 31, 2025, with a record date of January 17, 2025. This reflects Foresight’s commitment to a total dividend payout ratio of 60% of profit after tax before non-underlying items.
