ICG Enterprise Trust Plc: Unaudited Interim Results For the six months ended 31 July 2023
* ICG Enterprise Trust Plc* * Unaudited Interim Results For the six months ended 31 July 2023* * 5 October 2023*
*Defensive growth with a disciplined approach* Highlights
· NAV per Share of 1,904p at 31 July 2023, LTM NAV per Share Total Return* of 4.1% and 5 year annualised of 15.2%
· Portfolio companies generating ~15% LTM revenue and earnings growth, with weighted-average leverage of 4.7x^1
· H1 FY24 Portfolio Return* on a Local Currency Basis of 4.6% (Sterling return 1.6%), ICG-managed investments generated a local currency return of 5.1%
· Continuing to realise investments at Uplifts to Carrying Value and our Managers are executing on new investment opportunities, despite more subdued transaction activity market-wide
· Second quarter dividend of 8p per share, taking total dividends for H1 FY24 to 16p (H1 FY23: 14p). Reaffirmed intended FY24 dividend of at least 32p per share, an increase of 6.7% on FY23
· One year since launch of long-term buyback programme: £10.6m^2 invested to repurchase 1.4% of outstanding share capital at a weighted average discount to NAV of 40.6% since programme initiated
· In the coming months we expect to retain a disciplined approach to Direct investments and to continue to build a diversified portfolio through our Primary commitments
1 Based on Enlarged Perimeter covering 66.4% of the Portfolio. See page 7. ^2 Up to and including 30 September 2023
*This is an Alternative Performance Measure. Please refer to the Glossary for the definition.
Oliver Gardey Head of Private Equity Fund Investments, ICG ICG Enterprise Trust's strategy of investing exclusively in buyouts of businesses that exhibit defensive growth characteristics - along with our capital allocation policy - is delivering attractive shareholder returns. In the last twelve months we have generated an NAV per Share Total Return of 4.1%, and over the last five years an annualised NAV Per Share Total Return of 15.2%.
Although market-wide transaction activity was lower during the period, we and our Managers have continued to identify attractive opportunities for new investments and realisations. Total Realisations during the period generated proceeds of £94.1m, including 17 full exits at a weighted average Uplift to Carrying Value of 17.7%. Our investments of £64.1m during the period included two Direct investments.
A challenging fundraising market for private equity managers continues to be a favourable environment for our perpetual capital structure, and we made nine new commitments during the period, including to two funds managed by ICG.
Our Portfolio is performing in line with our expectations, and the Primary commitments made in recent quarters are enabling us to continue to build a diversified Portfolio through cycles. Our relationship with ICG is demonstrating economic and broader benefits to ICG Enterprise Trust, and we feel well positioned for the months ahead and for the longer term.
PERFORMANCE OVERVIEW
*Annualised*
*Performance to 31 July 2023* 3 months 6 months 1 year 3 years 5 years 10 years
Portfolio Return on a Local Currency Basis 4.3% 4.6% 7.3% 24.3% 17.9% 13.4%
NAV per Share Total Return 1.9% 0.8% 4.1% 21.1% 15.2% 13.0%
Share Price Total Return 11.7% 2.9% 2.8% 17.0% 9.4% 11.9%
FTSE All-Share Index Total Return (1.2) % 0.5% 6.1% 12.3% 3.4% 5.5%
*Portfolio activity overview for H1 FY24* *Primary* *Direct* *Secondary* *Total* *ICG-managed*
Local Currency return 4.8% 3.8% 5.5% 4.6% 5.1%
Sterling return 1.8% 1.4% 1.4% 1.6% 1.8%
New Investments £39.2m £18.4m £6.5m £64.1m £9.9m
Total Proceeds £46.6m £35.3m £12.2m £94.1m £15.8m
New Fund Commitments £89.7m - £20.3m £110.0m £42.2m
*Closing Portfolio value* *£767.5m* *£372.5m* *£258.8m* *£1,398.8m* *£411.9m*
% Total Portfolio 54.9% 26.6% 18.5% 100.0% 29.4%
OUTLOOK
We are encouraged by the performance of our underlying investments, which have continued to generate robust revenue and EBITDA growth.
In the current market, we opt to retain a disciplined approach to Direct investments, and our fund commitments are enabling us to continue to invest in our portfolio. We continue to see favourable dynamics in the Secondary market as other private equity investors seek routes to liquidity. Importantly, we remain confident in the quality of our Portfolio, of our managers, and of our team, to generate resilient long-term returns for our shareholders.
COMPANY TIMETABLE
A presentation for investors and analysts will be held at 10:00 BST today. A link for the presentation can be found on the Results & Reports page of the Company website. A recording of the presentation will be made available on the Company website after the event.
*FY24 First Interim Dividend* *FY24 Second Interim Dividend*
Ex-dividend date 17 August 2023 16 November 2023
Record date 18 August 2023 17 November 2023
Dividend payment date 1 September 2023 1 December 2023
ENQUIRIES
Institutional investors and analysts:
Chris Hunt, Head of Shareholder Relations +44 (0) 20 3545 2000
Livia Bridgman Baker, Shareholder Relations
Media:
Clare Glynn, Corporate Communications +44 (0) 20 3545 1395
ABOUT ICG ENTERPRISE TRUST
ICG Enterprise Trust is a leading listed private equity investor focused on creating long-term growth by delivering consistently strong returns through selectively investing in profitable, cash-generative private companies, primarily in Europe and the US, while offering the added benefit to shareholders of daily liquidity.
We invest in companies directly as well as through funds managed by Intermediate Capital Group ('ICG') and other leading private equity managers who focus on creating long-term value and building sustainable growth through active management and strategic change.
NOTES
Included in this document are Alternative Performance Measures (“APMs”). APMs have been used if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company, and for comparing the performance of the Company to its peers and its previously reported results. The Glossary includes further details of APMs and reconciliations to International Financial Reporting Standards (“IFRS”) measures, where appropriate.
In the Manager’s Review and Supplementary Information, all performance figures are stated on a Total Return basis (i.e. including the effect of re-invested dividends). ICG Alternative Investment Limited, a regulated subsidiary of Intermediate Capital Group plc, acts as the Manager of the Company.
DISCLAIMER
The information contained herein and on the pages that follow does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for, any securities in any jurisdiction where such an offer or solicitation is unlawful or would impose any unfulfilled registration, qualification, publication or approval requirements on ICG Enterprise Trust PLC (the "Company") or its affiliates or agents. Equity securities in the Company have not been and will not be registered under the applicable securities laws of the United States, Australia, Canada, Japan or South Africa (each an “Excluded Jurisdiction”). The equity securities in the Company referred to herein and on the pages that follow may not be offered or sold within an Excluded Jurisdiction, or to any U.S. person ("U.S. Person") as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or to any national, resident or citizen of an Excluded Jurisdiction.
The information on the pages that follow may contain forward looking statements. Any statement other than a statement of historical fact is a forward looking statement. Actual results may differ materially from those expressed or implied by any forward looking statement. The Company does not undertake any obligation to update or revise any forward looking statements. You should not place undue reliance on any forward looking statement, which speaks only as of the date of its issuance.
*CHAIR’S FOREWORD*
ICG Enterprise Trust aims to provide investors with exposure to private equity investments that can deliver resilient returns for our shareholders over the long term, with the added benefit of daily liquidity.
Your Company’s NAV per Share Total Return during the period was 0.8% and at 31 July 2023 the Company’s NAV stood at 1,904p per share. Over the longer-term, our track record is evidencing the success of our investment strategy: over the five years to 31 July 2023 we have generated an annualised NAV per Share Total Return of 15.2%, and over the three years to 31 July 2023 we have generated an annualised NAV per Share Total Return of 21.1%.
Despite this impressive track record and the resilient operational performance of our underlying investments, our discount has remained wide, in common with much of the listed private equity investment trust sector. In the face of this, the Board has taken a number of steps to optimise returns for our shareholders today, and to engage with the shareholders of tomorrow.
Costs remain a focus for the Board, and this period benefits from the management fee cap and cost sharing agreement we entered into with the Manager, effective from 1^st February 2023. In aggregate we estimate shareholders have saved approximately £1m in this period as a result of these actions, including the management fees of £8.0m being approximately 8% lower than they would have been had the management fee cap not been in place.
Our buyback programme has been successfully and regularly implemented since its introduction almost a year ago today: we have repurchased just under 1 million shares at a weighted average discount to NAV of 40.6%. These buybacks represent £10.6m of capital returned to shareholders, equivalent to approximately one third of total cash returns during the period. Alongside this, we reiterate our commitment to the Company's progressive dividend policy.
Finally, your Board recognises the importance of transparent and open shareholder engagement, and I look forward to seeing a number of you in the coming months. I was delighted to represent the Board at ICG Enterprise Trust’s first Investor Day earlier this year. Then, as now, your Board remains confident that ICG Enterprise Trust is well positioned to navigate the current macroeconomic environment. The portfolio has performed well over the last year, reassuring us that it will be resilient and defensive through the cycle. Our underlying earnings continue to grow, which should provide long term returns for our shareholders.
*Jane Tufnell*
*Chair*
5 October 2023
MANAGER’S REVIEW
*Alternative Performance **Measures*
The Board and the Manager monitor the financial performance of the Company on the basis of Alternative Performance Measures (APM), which are non-IFRS measures. The APM predominantly form the basis of the financial measures discussed in this review, which the Board believes assists shareholders in assessing their investment and the delivery of the investment strategy.
The Company holds certain investments in subsidiary entities. The substantive difference between APM and IFRS is the treatment of the assets and liabilities of these subsidiaries. The APM basis “looks through” these subsidiaries to the underlying assets and liabilities they hold, and it reports the investments as the Portfolio APM. Under IFRS, the Company and its subsidiaries are reported separately. The assets and liabilities of the subsidiaries are presented on the face of the IFRS balance sheet as a single carrying value. The same is true for the IFRS and APM basis of the Cash flow statement.
The following table sets out IFRS metrics and the APM equivalents:
*IFRS (£m)* *31 July 2023* *31 July 2022* *APM (£m)* *31 July 2023* *31 July 2022*
Investments 1,342.7 1,298.1 Portfolio 1,398.8 1,353.7
NAV 1,290.3 1,268.8
Cash flows from the sale of portfolio investments 15.7 18.2 Total Proceeds 94.1 106.8
Cash flows related to the purchase of portfolio investments 15.5 29.6 Total New Investment 64.1 143.7
The Glossary includes definitions for all APM and, where appropriate, a reconciliation between APM and IFRS.
Our investment strategy
We focus on investing in buyouts of profitable, cash-generative businesses in developed markets that exhibit defensive growth characteristics which we believe support strong and resilient returns across economic cycles.
We take an active approach to portfolio construction, with a flexible mandate that enables us to deploy capital in Primary, Secondary and Direct investments. Geographically we focus on the developed markets of North America and Europe which have deep and mature private equity markets supported by a robust corporate governance ecosystem.
*Medium-term target* *Five-year average* *31 July 2023*
*1. Target Portfolio composition *^*1*
Investment category
Primary ~50% 61% 55%
Direct ~25% 27% 27%
Secondary ~25% 12% 18%
Geography^2
North America ~50% 39% 43%
Europe (inc. UK) ~50% 55% 51%
Other — 6% 6%
*2. Balance sheet*
(Net cash)/debt^3 ~0% (2)% 4%
1 As percentage of Portfolio; 2 (Net cash)/net debt as a percentage of NAV; 3 (Net cash)/debt as a percentage of NAV
Note: five year average is the linear average of FY exposures for FY20 - FY23 and H1 FY24
ICG Enterprise Trust benefits from access to ICG-managed funds and Direct investments, which represented 29.4% of the Portfolio value at period end and generated a 5.1% return on a local currency basis.
*Performance overview*
At 31 July 2023, our Portfolio was valued at £1,398.8m, and the Portfolio Return on a Local Currency Basis for the first half of the financial year was 4.6% (H1 FY23: 7.3%).
All investment categories, Primary, Direct and Secondary, generated positive Portfolio returns during the period:
· Primary investments generated a local currency return of 4.8%. Returns were broad based, with notable outperformance from funds managed by ICG and Gridiron, among others
· Direct Investments generated a return of 3.8%, reflecting resilient operational performance, as well as a number of realisations agreed during the period
· Secondary investments generated a return of 5.5%
Over the last five years, our Portfolio has generated an annualised Portfolio Return on a Local Currency Basis of 17.9%.
Due to the geographic diversification of our Portfolio, the reported value is impacted by changes in foreign exchange rates. During the period, the Portfolio decreased by £42.5m (3.0%) due to FX movements, driven by Sterling appreciation versus both the Euro and US Dollar. In Sterling terms, Portfolio growth during the period was 1.6%.
ICG Enterprise Trust generated a NAV per Share Total Return of 0.8% during H1 FY24 (4.1% on an LTM basis), ending the period with a NAV per Share of 1,904p.
Over the last five years, ICG Enterprise Trust has generated an annualised NAV per Share Total Return of 15.2%.
*Movement in the Portfolio*
*£m* *Six months to*
*31 July 2023* *Six months to*
*31 July 2022*
*Opening Portfolio*^*1* *1,406.4* *1,172.2*
Total New Investments 64.1 143.7
Total Proceeds (94.1) (106.8)
Portfolio net cashflow (30.0) 36.9
Valuation movement^2 65.0 87.0
Currency movement (42.6) 57.6
*Closing Portfolio* *1,398.8* *1,353.7*
*% Portfolio growth (local currency)* *4.6**%* *7.4%*
% currency movement (3.0)% 5.0%
*% Portfolio growth (Sterling)* *1.6* *%* *12.4%*
Impact of (net cash)/net debt 0.1 % 0.2%
Expenses and other income (1.0) % (0.9) %
Co-investment Incentive Scheme Accrual (0.2) % (0.8) %
Impact of share buybacks and dividend reinvestment 0.3 % —%
*NAV per Share Total Return* *0.8* *%* *10.9%*
1 Refer to the Glossary
2 92.4% of the Portfolio is valued using 30 June 2023 (or later) valuations (2022: 99.6%)
*Portfolio company performance*
Our Portfolio companies delivered robust financial performance during the period, generating double digit revenue and EBITDA growth over the last twelve months. As well as performance metrics for our Top 30 companies, we include data for our "Enlarged Perimeter", which represents the aggregate value of the Top 30 Companies and as many of the managers from within the Top 30 funds as practicable. At 31 July 2023, the Enlarged Perimeter represented 66.4% of the Portfolio by value.
Based on the Enlarged Perimeter, valuation metrics and leverage of the Portfolio remained broadly stable during the period: EV/EBITDA for the Enlarged Perimeter was 14.4x for the period (FY23: 14.0x); and Net Debt / EBITDA for the Enlarged Perimeter was 4.7x (FY23: 4.6x).
*Top 30* *Enlarged Perimeter*
Portfolio coverage 36.8% 66.4%
Last Twelve Months ('LTM') revenue growth 14.9% 15.6%
LTM EBITDA growth 14.7% 16.9%
Net Debt / EBITDA^1 4.8x 4.7x
Enterprise Value / EBITDA^1 14.7x 14.4x
Note: values are weighted averages for the respective portfolio segment; see Glossary for definition and calculation methodology
1 Weighted average metrics exclude PetSmart, for which EBITDA multiple is not an appropriate valuation metric
Quoted company exposure
We do not actively invest in publicly quoted companies but gain listed investment exposure when IPOs are used as a route to exit an investment. In these cases, exit timing typically lies with the manager with whom we have invested.
At 31 July 2023, ICG Enterprise Trust’s exposure to quoted companies was valued at £97.1m, equivalent to 6.9% of the Portfolio value (FY23: 7.8%). Across the Portfolio, quoted positions resulted in a marginal decrease of £0.1m in Portfolio NAV during the period. The share price of our largest listed exposure, Chewy, decreased by 24% in local currency (USD) during the period.
At 31 July 2023 there was one quoted investment that individually accounted for 0.5% or more of the Portfolio value:
*Company* *Ticker* *31 July 2023*
*% of Portfolio value*
Chewy (part of PetSmart)^1 CHWY-US 2.7%
Other companies 4.2%
Total *6.9%*
1 Value includes entire holding of PetSmart and Chewy. Majority of value is within Chewy
During the period, BC Partners (the underlying manager of the PetSmart investment) announced a transaction between PetSmart/Chewy and Apollo, which is expected to close later this year. While we do not expect a meaningful near-term impact on our Portfolio valuation or realisation proceeds as a result of this transaction, we believe it provides some long-term flexibility around this investment for BC Partners.
Realisation activity
During the first half of FY24, the ICG Enterprise Trust Portfolio generated Total Realisation Proceeds of £94.1m.
Realisation activity during the period included 17 Full Exits. These were completed at a weighted average Uplift to Carrying Value of 17.7% and weighted average Multiple to Cost of 4.0x.
The 10 largest underlying realisations in the period, which represent 65.8% of Total Realisation Proceeds, are set out in the table below:
*Investment* *Description* *Manager* *Country* *Proceeds £m*
Endeavor Schools Provider of paid private schooling Leeds Equity Partners United States 32.9
Signify Health Provider of technology enabled healthcare payor services New Mountain Capital United States 8.3
Breitling Manufacturer of luxury watches CVC Capital Partners Switzerland 3.9
GoodLife Foods Producer of frozen snacks Egeria Netherlands 3.3
SERB Manufacturer of speciality pharmaceuticals Charterhouse Capital Partners Belgium 2.9
USCO Manufacturer and supplier of components for earth-moving machines One Equity Partners Italy 2.5
Enhesa Group Provider of Environmental, Health and Safety compliance support ICG Belgium 2.4
TMF Provider of management and accounting outsourcing services CVC Capital Partners Netherlands 2.1
Ilionx Provider of IT services and solutions Egeria Netherlands 1.8
group.ONE Provider of web hosting and domain services Cinven Sweden 1.7
*Total of 10 largest underlying realisations* *61.8*
New investment activity
Total new investments of £64.1m during the period, of which 5.4% (£9.9m) were alongside ICG. New investment by category detailed in the table below:
*Investment Category*
*Cost (£m)* *% of New Investments*
Primary 39.2 61.2%
Direct 18.4 28.7%
Secondary 6.5 10.1%
*Total* *64.1* *100.0%*
During the first half of the financial year we made two new Direct Investments for a combined value of £12.2m. The balance of Direct Investments is comprised of £6.2m of incremental drawdowns across existing Direct Investments.
The 10 largest underlying new investments in the period were as follows:
*Investment* *Description* *Manager* *Country* *Cost £m*^*1*
Archer Technologies Developer of governance, risk and compliance software intended for risk management Cinven United States 9.5
Atlas Technical Consultants Provider of professional testing, inspection, engineering, environmental and consulting services GI Partners United States 4.2
Independence Products Provider of prescribed infection prevention products Graphite Capital United Kingdom 1.5
NovaTaste Supplier of flavourings and ingredients PAI Partners Austria 1.3
Maxar Provider of geospatial intelligence and satellite manufacturing services Advent International United States 1.2
Envalior Provider of engineering materials solutions Advent International Germany 1.1
Looping Operator of theme parks PAI Partners United Kingdom 1.0
European Camping Group Operator of premium campsites and holiday parks PAI Partners France 1.0
Coupa Software Operator of a SaaS platform that provides enterprises with procurement, invoicing, and expense management modules Thoma Bravo United States 1.0
TalentNeuron Provider of talent analytics and labour market data Leeds Equity Partners United States 1.0
*Top 10 largest underlying new investments* *22.8*
1 Represents ICG Enterprise Trust's indirect investment (share of fund cost) plus any direct investments in the period.
Commitments
The fundraising market continues to be favourable to ICG Enterprise Trust: in an environment where many investors are restricted in their ability to commit new capital, our perpetual capital structure and flexible investment mandate enables us to commit through the cycle, maintaining vintage diversification for our Portfolio and sowing the seeds for future growth.
During the period we made nine new fund Commitments totalling £110.0m, including to two funds managed by ICG plc, as detailed below:
*Fund* *Manager* *Type / Focus* *Commitment during the period* *Local currency* *£m*
Audax Private Equity VII Audax Group Primary / mid-market buyouts $10.0m £8.0m
Cinven VIII Cinven Primary / large buyouts €15.0m £13.2m
Hellman Friedman XI Hellman & Friedman Primary / large buyouts $10.0m £8.0m
ICG Europe Mid-Market II ICG Primary / mid-market buyouts €25.0m £22.0m
Apax XI Apax Partners Primary / mid-market buyouts €10.0m £8.8m
Bregal Unternehmerkapital IV Bregal Primary / mid-market buyouts €10.0m £8.7m
CVC IX CVC Capital Partners Primary / large buyouts €15.0m £13.0m
Genstar Capital Partners XI Genstar Capital Partners Primary / large buyouts $10.0m £8.0m
ICG Strategic Equity V ICG Secondaries / GP-led $25.0m £20.3m
At 31 July 2023, ICG Enterprise Trust had outstanding Undrawn Commitments of £548.7m.
*Movement in outstanding Commitments* *6 months to 31 July 2023*
*£m*
Undrawn Commitments as at 1 February 2023 496.7
New Fund Commitments 110.0
New Commitments relating to Co-investments 12.5
Drawdowns (64.1)
Currency and other movements, including repayment of commitments which can be reinvested (6.4)
*Undrawn commitments as at 31 July 2023* *548.7*
Total Undrawn Commitments at 31 July 2023 represented £429.3m of Undrawn Commitments to funds within their Investment Period, while £119.4m was to funds outside their Investment Period.
*31 July 2023*
*£m* *31 July 2022 *
*£m*
Undrawn Commitments – funds in Investment Period 429.3 367.0
Undrawn Commitments – funds outside Investment Period 119.4 129.7
*Total Undrawn Commitments* *548.7* *496.7*
Total available liquidity (including facility) (158.6) (167.0)
*Overcommitment net of total available liquidity* *390.1* *329.7*
*Overcommitment % of net asset value* *30.2%* *25.3%*
Commitments are made in the funds' underlying currencies. The currency split of the undrawn commitments at 31 July 2023 was as follows:
*31 July 2023* *31 July 2022*
*Undrawn Commitments* *£m* *%* *£m* *%*
US Dollar 271.5 49.4% 253.7 51.1%
Euro 261.0 47.6% 226.1 45.5%
Sterling 16.2 3.0% 16.9 3.4%
*Total* *548.7* *100.0%* *496.7* *100.0%*
Liquidity
At 31 July 2023 ICG Enterprise Trust had a cash balance of £24.0m (31 January 2023: £20.7m) and total available liquidity of £158.6m (31 January 2023: £167.0m).
*£m*
*Cash at 31 January 2023* *20.7*
Realisation Proceeds 94.1
New investments (64.1)
Debt drawn down 5.4
Shareholder returns (17.3)
Management fees (7.5)
FX and other expenses (7.3)
*Cash at 31 July 2023* *24.0*
Available undrawn debt facilities 134.6
*Total available liquidity* *158.6*
At 31 July 2023, the drawn debt was £72.9m (31 January 2023: £65.4m), resulting in a net debt position of £48.9m. At 31 July 2023, the Portfolio represented 108.4% of net assets (31 January 2023: 108.1%).
*£m* *% of net assets*
Portfolio 1,398.8 108.4%
Cash 24.0 1.9%
Drawn debt (72.9) (5.6%)
Co-investment Incentive Scheme Accrual (57.0) (4.4%)
Other net current liabilities (2.6) (0.3%)
*Net assets* *1,290.3* *100.0%*
Our objective is to be fully invested through the cycle, while ensuring that we have sufficient financial resources to be able to take advantage of attractive investment opportunities as they arise. Drawdowns of commitments are funded from Total Proceeds and, where appropriate, the debt facility.
Dividend and share buyback
Reflecting the Company's ongoing focus on optimising shareholder returns, ICG Enterprise Trust maintains a progressive dividend policy alongside an active share buyback programme to return capital to shareholders.
The Board has declared a dividend of 8p per share in respect of the second quarter, taking total dividends for the period to 16p (H1 FY23: 14p). It remains the Board's intention, in the absence of any unforeseen circumstances, to declare total dividends of at least 32p per share for the financial year, implying an increase of 6.7% on the previous financial year.
In October 2022 the Board announced the introduction of a long-term active share buyback programme, which may be executed at any discount to NAV. Details of share repurchases made under this programme are provided below:
*Buyback activity summary* *H1 FY24* *Since 19 October 2022*^*1*
Number of shares purchased 583,352 946,347
Aggregate consideration £6.5m £10.6m
Weighted average discount to last reported NAV 41.2% 40.6%
^1 Being the date the long-term share buyback programme was announced, up to and including 30 September 2023
Note: aggregate consideration excludes commission, PTM and SDRT
The Board believes the buyback programme demonstrates the Manager’s discipline around capital allocation; underlines the Board’s confidence in the long-term prospects of the Company, its cashflows and NAV; will enhance the NAV per share; and, over time, may positively influence the volatility of the Company’s discount and its trading liquidity.
The Board reviews the size, mandate and efficacy of the buyback programme on a quarterly basis, to ensure it is working in the long-term interests of shareholders and in line with the objectives outlined above.
The Board retains absolute discretion as to the execution, pricing and timing of any share buybacks, subject to the conditions set out in the authority to execute share buybacks approved at the Company's 2023 Annual General Meeting. Any shares repurchased by the Company will be held in treasury.
Activity since the period end
Notable activity between 1 August 2023 and 31 August 2023 has included:
· Realisation Proceeds of £8.4m
· New investments of £15.0m
Foreign exchange rates
The details of relevant FX rates applied in this report are provided in the table below:
*Average rate 6 months to* *Period end rate* *31 July 2023* *31 July 2022* *31 July 2023* *31 July 2022*
GBP:EUR 1.1465 1.1680 1.1671 1.1341
GBP:USD 1.2445 1.2257 1.2836 1.2320
EUR:USD 1.0854 1.0491 1.0997 1.0863
*ICG Private Equity Fund Investments Team*
5 October 2023
SUPPLEMENTARY INFORMATION
This section presents supplementary information regarding the Portfolio (see Manager’s Review and the Glossary for further details and definitions).
Portfolio composition
*Portfolio by calendar year of investment* *% of value of underlying investments *
*31 July 2023* *% of value of underlying investments *
* 31 July 2022*
2023 2.3 % — %
2022 17.0% 19.6%
2021 27.4% 25.1%
2020 10.7% 10.3%
2019 12.7% 12.0%
2018 10.7% 12.0%
2017 6.2% 6.7%
2016 4.0% 4.1%
2015 3.3% 4.1%
2014 and older 5.7% 6.1%
*Total* *100.0%* *100.0%*
*Portfolio by sector* *% of value of underlying investments *
*31 July 2023* *% of value of underlying investments *
* 31 July 2022*
TMT 24.1% 22.5%
Consumer goods and services 20.9% 20.9%
Healthcare 13.2% 13.3%
Business services 12.9% 12.6%
Industrials 8.1% 8.4%
Education 5.4% 7.0%
Financials 6.0% 5.0%
Leisure 4.8% 3.9%
Other 4.6% 6.4%
*Total* *100.0%* *100.0%*
*Portfolio by fund currency*^1 *£m* *31 July 2023*
* %* *31 July 2022 *
*£m* *31 July 2022 *
*%*
US Dollar 671.3 48.0% 508.7 43.4%
Euro 612.0 43.8% 558.5 47.6%
Sterling 115.2 8.2% 104.7 9.0%
Other 0.3 —% 0.3 —%
*Total* *1,398.8* *100.0%* *1,172.2* *100.0%*
^1 Currency exposure by reference to the reporting currency of each fund .
Portfolio Dashboard
The tables below provide disclosure on the composition and dispersion of financial and operational performance for the Top 30 and the Enlarged Perimeter. At 31 July 2023, the Top 30 Companies represented 36.8% of the Portfolio by value and the Enlarged Perimeter represented 66.4% of total Portfolio value. This information is prepared on a value-weighted basis, based on contribution to Portfolio value at 31 July 2023.
*% of value at 31 July 2023*
*Sector exposure* *Top 30* *Enlarged Perimeter*
TMT 26.6% 22.2%
Consumer goods and services 21.2% 20.9%
Business services 17.7% 14.5%
Healthcare 10.6% 12.9%
Education 7.7% 5.9%
Leisure 7.1% 5.5%
Financials 2.6% 4.3%
Industrials 6.5% 9.5%
Other - 4.3%
*Total* *100.0%* *100.0%*
*% of value at 31 July 2023*
*Geographic exposure*^1 *Top 30 * * Enlarged Perimeter*
North America 43.1% 45.0%
Europe 50.1% 51.0%
Other 6.8% 4.0%
*Total* *100.0%* *100.0%*
1 Geographic exposure is calculated by reference to the location of the headquarters of the underlying Portfolio companies
*% of value at 31 July 2023*
*LTM revenue growth* *Top 30 * *Enlarged Perimeter *
<0% 12.6% 13.0%
0-10% 26.7% 28.6%
10-20% 31.7% 27.7%
20-30% 9.8% 12.5%
>30% 12.0% 13.0%
n.a.^1 7.2% 5.2%
*Weighted average* *14.9%* *15.6%*
Note: for consistency, any excluded investments are excluded for all dispersion analysis.
1 n.a. within Top 30 represents PetSmart, for which EBITDA multiple is not an appropriate valuation metric.
*% of value at 31 July 2023*
*LTM EBITDA growth* *Top 30 * *Enlarged Perimeter *
<0% 20.1% 23.1%
0-10% 20.2% 18.9%
10-20% 30.5% 24.1%
20-30% 4.6% 7.7%
>30% 17.4% 20.5%
n.a^1 7.2% 5.7%
*Weighted average* *14.7%* *16.9%*
Note: for consistency, any excluded investments are excluded for all dispersion analysis.
1 n.a. within Top 30 represents PetSmart, for which EBITDA multiple is not an appropriate valuation metric.
*% of value at 31 July 2023*
*EV/EBITDA multiple* *Top 30 * *Enlarged Perimeter *
0-10x 8.8% 14.1%
10-12x 15.7% 15.5%
12-13x 15.2% 13.7%
13-15x 19.7% 18.4%
15-17x 15.8% 13.0%
17-20x 8.1% 9.2%
>20x 9.5% 10.1%
n.a.^1 7.2% 6.0%
*Weighted average* *14.7x * *14.4x*
Note: for consistency, any excluded investments are excluded for all dispersion analysis.
1 n.a. within Top 30 represents PetSmart, for which EBITDA multiple is not an appropriate valuation metric.
*% of value at 31 July 2023*
*Net Debt / EBITDA* *Top 30 * *Enlarged Perimeter *
<2x 21.0% 15.9%
2-4x 9.0% 18.6%
4-5x 19.0% 15.8%
5-6x 17.0% 17.1%
6-7x 7.0% 9.7%
>7x 20.0% 15.8%
n.a.^1 7.0% 7.1%
*Weighted average* *4.8x* *4.7x*
Note: for consistency, any excluded investments are excluded for all dispersion analysis.
1 n.a. within Top 30 represents PetSmart, for which EBITDA multiple is not an appropriate valuation metric.
Top 30 companies
The table below presents the 30 companies in which ICG Enterprise Trust had the largest investments by value at 31 July 2023. The valuations are gross of underlying managers fees and carried interest.
*Company* *Manager* *Year of investment* *Country* *Value as a % of Portfolio*
*1* *Minimax* Supplier of fire protection systems and services ICG 2018 Germany 3.1%
*2* *Petsmart / Chewy* Retailer of pet products and services BC Partners 2015 United States 2.7%
*3* *Froneri* Manufacturer and distributor of ice cream products PAI 2013 / 2019 United Kingdom 2.2%
*4* *Leaf Home Solutions* Provider of home maintenance services Gridiron 2016 United States 1.7%
*5* *European Camping Group* Operator of premium campsites and holiday parks PAI 2021 / 2023 France 1.4%
*6* *Yudo* Designer and manufacturer of hot runner systems ICG 2017 / 2018 South Korea 1.4%
*7* *Curium Pharma* Supplier of nuclear medicine diagnostic pharmaceuticals ICG 2020 United Kingdom 1.4%
*8* *AML RightSource* Provider of compliance and regulatory services and solutions Gridiron 2020 United States 1.3%
*9* *Circana (formerly known as IRI)* Provider of mission-critical data and predictive analytics to consumer goods manufacturers New Mountain 2022 United States 1.3%
*10* *Precisely* Provider of enterprise software Clearlake / ICG 2021 / 2022 United States 1.3%
*11* *Newton* Provider of management consulting services ICG 2021 / 2022 United Kingdom 1.2%
*12* *Ambassador Theatre Group* Operator of theatres and ticketing platforms ICG / Providence 2021 United Kingdom 1.2%
*13* *David Lloyd Leisure* Operator of premium health clubs TDR 2013 / 2020 United Kingdom 1.2%
*14* *Crucial Learning* Provider of corporate training courses focused on communication skills and leadership development Leeds Equity 2019 United States 1.1%
*15* *DomusVi* Operator of retirement homes ICG 2017 / 2021 France 1.1%
*16* *Visma* Provider of business management software and outsourcing services HgCapital / ICG 2017 / 2020 Norway 1.1%
*17* *PSB Academy* Provider of private tertiary education ICG 2018 Singapore 1.1%
*18* *Ivanti* Provider of IT management solutions Charlesbank / ICG 2021 United States 1.1%
*19* *Planet Payment* Provider of integrated payments services focused on hospitality and luxury retail Advent / Eurazeo 2021 Ireland 1.0%
*20* *DigiCert* Provider of enterprise security solutions ICG 2021 United States 1.0%
*21* *ECA Group* Provider of autonomous systems for the aerospace and maritime sectors ICG 2022 France 1.0%
*22* *Davies Group* Provider of speciality business process outsourcing services BC Partners 2021 United Kingdom 1.0%
*23* *KronosNet* Provider of tech-enabled customer engagement and business solutions ICG 2022 Spain 0.9%
*24* *Class Valuation* Provider of residential mortgage appraisal management services Gridiron 2021 United States 0.9%
*25* *Brooks Automation* Provider of semiconductor manufacturing solutions THL 2021 / 2022 United States 0.8%
*26* *WCT* Provider of clinical research outsourcing services The Jordan Company 2021 United States 0.8%
*27* *Archer Technologies* Developer of governance, risk and compliance software intended for risk management Cinven 2023 United States 0.7%
*28* *AMEOS Group* Operator of private hospitals ICG 2021 Switzerland 0.6%
*29* *RegEd* Provider of SaaS-based governance, risk and compliance enterprise solutions Gryphon 2018 / 2019 United States 0.6%
*30* *Vistage* Provider of CEO leadership and coaching for small and mid-size businesses in the US Gridiron 2022 United States 0.6% *Total of the 30 largest underlying investments* *36.8%*
The 30 largest fund investments
The table below presents the 30 largest fund investments by value at 31 July 2023. The valuations are net of underlying managers’ fees and carried interest.
*Fund* *Year of commitment* *Value £m* *Outstanding commitment £m*
*1* *ICG Strategic Equity Fund III* GP-led secondary transactions 2018 34.8 10.8
*2* *ICG Europe VII* Mezzanine and equity in mid-market buyouts 2018 33.7 6.6
*3* *ICG LP Secondaries Fund I* LP-led secondary transactions 2022 33.2 26.0
*4* *ICG Ludgate Hill I* Secondary portfolio 2021 31.7 14.0
*5* *Gridiron Capital Fund III* Mid-market buyouts 2016 30.2 4.0
*6* *CVC European Equity Partners VII* Large buyouts 2017 30.0 1.7
*7* *PAI Strategic Partnerships* Mid-market and large buyouts 2019 29.0 0.3
*8* *Graphite Capital Partners VIII* Mid-market buyouts 2013 27.2 2.2
*9* *PAI Europe VII* Mid-market and large buyouts 2017 26.5 1.5
*10* *Gridiron Capital Fund IV* Mid-market buyouts 2019 23.7 1.0
*11* *ICG Strategic Equity Fund IV* GP-led secondary transactions 2021 23.0 14.9
*12* *ICG Ludgate Hill III* Secondary portfolio 2022 21.3 3.3
*13* *Resolute IV* Mid-market buyouts 2018 20.5 1.5
*14* *Sixth Cinven Fund* Large buyouts 2016 19.8 1.6
*15* *Resolute II* Secondary fund restructuring 2018 18.9 1.1
*16* *Oak Hill V* Mid-market buyouts 2019 18.9 1.0
*17* *CVC European Equity Partners VI* Large buyouts 2013 18.0 1.9
*18* *Advent Global Private Equity IX* Large buyouts 2019 17.1 0.8
*19* *Advent Global Private Equity VIII* Large buyouts 2016 17.1 0.0
*20* *Seventh Cinven* Large buyouts 2019 16.9 3.8
*21* *AEA VII* Mid-market buyouts 2019 16.3 0.6
*22* *BC European Capital X* Large buyouts 2016 16.0 1.4
*23* *Resolute V* Mid-market buy-outs 2021 15.7 1.1
*24* *New Mountain Partners V* Mid-market buyouts 2017 15.4 1.7
*25* *ICG Augusta Partners Co-Investor* Secondary fund restructurings 2018 15.3 17.6
*26* *Thomas H Lee Equity Fund VIII* Mid-market and large buyouts 2017 15.2 2.2
*27* *Gryphon V* Mid-market buyouts 2019 14.9 1.7
*28* *Graphite Capital Partners IX* Mid-market buyouts 2018 14.8 5.8
*29* *BC European Capital IX* Large buyouts 2011 14.0 0.6
*30* *ICG Europe Mid-Market Fund* Mezzanine and equity in mid-market buyouts 2019 13.1 7.6 *Total of the largest 30 fund investments* *642.2* *138.3* *Percentage of total investment Portfolio* *45.9%*
*PRINCIPAL RISKS AND UNCERTAINTIES *
The principal risks and uncertainties facing the Company are substantially the same as those disclosed in the Strategic Report and in the notes to the Financial Statements in the Company’s latest Annual Report for the year ended 31 January 2023 which was approved by the Board on 10 May 2023.
The Company considers its principal risks (as well as several underlying risks comprising each principal risk) in four categories:
*Investment risks:* the risk to performance resulting from ineffective or inappropriate investment selection, execution or monitoring.
*External risks:* the risk of failing to deliver the Company’s investment objective and strategic goals due to external factors beyond the Company’s control.
*Operational risks:* the risk of loss resulting from inadequate or failed internal processes, people or systems and external event, including regulatory risk.
*Financial risks:* the risks of adverse impact on the Company due to having insufficient resources to meet its obligations or counterparty failure and the impact any material movement in foreign exchange rates may have on underlying valuations.
A comprehensive risk assessment process is undertaken regularly to re-evaluate the impact and probability of each risk materialising and the strategic, financial and operational impact of the risk. Where the residual risk is determined to be outside of appetite, appropriate action is taken.
In addition to these, emerging risks are regularly considered to assess any potential impact on the Company and to
determine whether any actions are required. The Board also regularly considers the evolution of requirements and standards
relating to ESG and responsible investing.
*Related Party Transactions*
There have been no material changes in the related party transactions described in the 31 January 2023 Annual Report.
*Directors’ Responsibility Statement*
The Directors are responsible for preparing the Interim Report, in accordance with applicable laws and regulations. The Directors confirm that, to the best of their knowledge:
· The condensed interim financial statements have been prepared in accordance with UK-adopted IAS 34 Interim condensed financial statements and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;· The Chair’s Statement and Manager’s Review includes a fair review of the information required by DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and· The interim financial statements include a fair review of the information required by DTR 4.28R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Company during that period, and any changes in the related party transactions described in the last Annual Report that could do so.
The Interim Report was approved by the Board and the above Directors’ Responsibility Statement was signed on its behalf by the Chair.
*Jane Tufnell*
*Chair*
5 October 2023
*Unaudited Interim Financial Statements for the period ended 31 July 2023*
*INTERIM CONDENSED FINANCIAL STATEMENTS*
Income statement
*Half year to 31 July 2023 *
*(Unaudited)* *Half year to 31 July 2022*
* (Unaudited)* *Notes*
*Revenue*
*return*
*£’000*
*Capital return*
*£’000*
*Total*
*£’000*
*Revenue*
*return*
*£’000*
*Capital return*
*£’000*
*Total*
*£’000*
Income, gains and losses on investments 481 19,267 19,748 1,489 135,029 136,518
Deposit interest 324 - 324 - - -
Other income 78 - 78 - - -
Foreign exchange gains and losses - 38 38 - 46 46 *883* *19,305* *20,188* *1,489* *135,075* *136,564*
*Expenses*
Investment management charges (802) (7,219) (8,021) (814) (7,323) (8,137)
Finance cost (433) (3,899) (4,332) (155) (1,394) (1,549)
Other expenses (887) - (887) (960) - (960) *(2,122)* *(11,118)* *(13,240)* *(1,929)* *(8,717)* *(10,646)*
*(Loss)/profit before tax* (1,239) 8,187 6,948 (440) 126,358 125,918
Taxation 1,837 (1,837) - 464 (464) -
*Profit for the period* *598* *6,350* *6,948* *24* *125,894* *125,918**Attributable to:*
Equity shareholders *598* *6,350* *6,948* *24* *125,894* *125,918*
*Basic and diluted earnings per share* *10.21* *183.78*
The columns headed ‘Total’ represent the income statement for the relevant financial years and the columns headed ‘Revenue return’ and ‘Capital return’ are supplementary information in line with guidance published by the AIC. There is no Other Comprehensive Income.
All profits are from continuing operations.
The notes on pages 27 to 29 form an integral part of the interim financial statements.
Balance sheet
*Notes*
*31 July*
*2023*
*(unaudited)*
*£’000*
*31 January*
*2023*
*(audited)*
*£’000*
*Non-current assets*
Investments held at fair value 7 *1,342,657* *1,349,075**Current assets*
Cash and cash equivalents 23,504 20,694
Receivables 2,618 2,416 *26,122* *23,110**Current liabilities*
Borrowings (72,904) (65,293)
Payables (5,615) (6,274) (78,519) (71,567)
Net current assets / (liabilities) (52,397) (48,457)
*Total assets less current liabilities* *1,290,260* *1,300,618**Capital and reserves*
Share capital 7,292 7,292
Capital redemption reserve 2,112 2,112
Share Premium 12,936 12,936
Capital reserve 1,268,795 1,279,751
Revenue reserve (875) (1,473)
*Total equity* *1,290,260* *1,300,618*
Net Asset Value per Share (basic and diluted) 6 1,904.1 1903.3p
The notes on pages 27 to 29 form an integral part of the interim financial statements.
The financial statements on pages 27 to 29 were approved by the Board of Directors on 4 October 2023 and signed on its behalf by:
*Jane Tufnell* *Alastair Bruce*
Director DirectorCash flow statement
*Half year to *
*31 July 2023 *
*(unaudited)*
*£’000* *Half year to *
*31 July 2022 *
*(unaudited)*
*(restated)*
*£’000*
*Operating activities*
Sale of Portfolio investments 15,737 18,183
Purchase of Portfolio investments (13,705) (29,644)
Cash flow to subsidiaries' investments (52,921) (108,890)
Cash flow from subsidiaries' investments 77,331 81,364
Interest income received from Portfolio investments 294 1,338
Dividend income received from Portfolio investments 296 151
Other income received and Deposit Interest 401 -
Investment management charges paid (7,488) (11,114)
Other expenses paid (2,892) (1,723)
*Net cash inflow/(outflow) from operating activities* *17,053* *(50,335)**Financing activities*
Bank facility fee (1,628) (2,018)
Interest paid (2,903) (332)
Purchase of own shares into treasury (6,477) -
Credit Facility utilised 90,087 56,737
Credit Facility repaid (82,476) (17,671)
Equity dividends paid to shareholders (10,886) (15,074)
*Net cash (outflow)/inflow from financing activities* *(14,282)* *21,642*
*Net increase/(decrease) in cash and cash equivalents* *2,771* *(28,693)*
*Cash and cash equivalents at beginning of period* *20,694* *41,328*
Net increase/(decrease) in cash and cash equivalents 2,771 (28,693)
Effect of changes in foreign exchange rates 39 56
*Cash and cash equivalents at end of period* *23,504* *12,691*
^1 In the prior period financial statements, 'Cash outflows to subsidiaries' and 'Cash inflows from subsidiaries' were netted within 'Net cash flows to subsidiary investments'. The netted items have been presented gross to display the individual inflows and outflows to provide better clarity for readers of the financial statements in line with IAS 7 with a nil impact on the overall Cash Flow Statement.
The notes on pages 27 to 29 form an integral part of the interim financial statements.
Statement of changes in equity
*Share capital*
* £’000* *Capital redemption*
*reserve*
*£’000*
*Share premium*
*£’000*
*Capital reserve*
*£’000*
*Revenue*
* reserve*
*£’000* *Total *
*shareholders’*
*equity*
*£’000*
*Half year to 31 July 2023 *
*(Unaudited)*
Opening balance at 1 February 2023 7,292 2,112 12,936 1,279,751 (1,473) 1,300,618
Profit for the period and total
comprehensive income — — — 6,350 598 6,948
Dividends paid — — — (10,886) — (10,886)
Purchase of own shares into
treasury — — — (6,420) (6,420)
*Closing balance*
*at 31 July 2023* *7,292* *2,112* *12,936* *1,268,795* *(875)* *1,290,260*
*Share capital*
* £’000* *Capital redemption*
*reserve*
*£’000*
*Share premium*
*£’000* *Capital reserve *
*£’000*
*Revenue*
* reserve*
*£’000* *Total *
*shareholders’*
*equity*
*£’000*
*Half year to 31 July 2022*
* (Unaudited)*
Opening balance at 1 February 2022 7,292 2,112 12,936 1,135,637 — 1,157,977
Profit for the period and total
comprehensive income — — — 125,896 24 125,920
Dividends paid — — — (15,049) (24) (15,074)
Purchase of own shares into
Treasury — — — — — —
*Closing balance*
*at 31 July 2022* *7,292* *2,112* *12,936* *1,246,484* — *1,268,823*
The notes on pages 27 to 29 form an integral part of the financial statements.
*NOTES TO THE FINANCIAL STATEMENTS*
For the period ended 31 July 2023
*1 GENERAL INFORMATION*
These interim condensed financial statements relate to ICG Enterprise Trust Plc (‘the Company’). ICG Enterprise Trust Plc is registered in England and Wales and is incorporated in the United Kingdom. The Company is domiciled in the United Kingdom and its registered office is Procession House, 55 Ludgate Hill, London EC4M 7JW. The Company’s objective is to provide long-term growth by investing in private companies managed by leading private equity managers.
*2 FINANCIAL INFORMATION*
The interim condensed financial statements are unaudited and do not comprise statutory accounts within the meaning of
section 434 of the Companies Act 2006. Within the notes to the interim condensed financial statements, all current and
comparative data covering the period to (or as at) 31 July 2023 is unaudited. Data given in respect of the year to 31 January 2023
is audited. The statutory accounts for the year to 31 January 2023 have been reported on by Ernst & Young LLP and delivered to
the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not contain an emphasis of matter paragraph,
and (iii) did not contain any statements under section 498(2) or (3) of the Companies Act 2006.
*3 BASIS OF PREPARATION*
The interim financial statements have been prepared in accordance with UK-adopted IAS 34 Interim financial Reporting (IAS 34) and on the basis of the accounting policies and methods of computation set out in the financial statements of the Company for the year to 31 January 2023.
The financial information for the year ended 31 January 2023 was prepared in accordance with UK-adopted International Accounting Standards (‘UK-IAS’) and the Statement of Recommended Practice ('SORP') for investment trusts issued by the Association of Investment Companies in July 2022.
The Company comprises one operating segment which is also a reporting segment.
*Going concern*
These financial statements have been prepared on a going concern basis and on the historical cost basis of accounting,
modified for the revaluation of certain assets at fair value. In making their going concern assessment, the Directors have
considered the potential impact of principal risks on the Company’s business activities; the Company’s net cash position; the
availability of the Company’s credit facility and compliance with its covenants; and the Company’s cash flow projections, in
particular those arising from committed but undrawn commitments.
The Directors have concluded based on the above assessment that the preparation of the interim condensed financial
statements on a going concern basis, to 31 October 2024, a period of more than 12 months from the signing of the interim
condensed financial statements, continues to be appropriate.
*4 DIVIDENDS*
*Half year to *
*31 July *
*2023 *
*£’000* *Half year to *
*31 July *
*2022 *
* £’000*
Third Quarterly dividend in respect of year ended 31 January
2023 of 7.0p per share (2022: 6.0p) 4,781 4,111
Final dividend in respect of year ended 31 January 2023 of 9.0p per share (2022: 9.0p) 6,105 6,167
First quarterly dividend in respect of year ended 31 January 2024: 8.0p per share (2023: 7.0p) — 4,796
*Total* *10,886* *15,074*
The Board has approved an interim dividend for the quarter to 30 April 2023 of 8.0p per share (totalling £5.4m) which has
been paid on 1 September to shareholders on the register on 18 August 2023. The Board has proposed a second interim dividend of 8.0p per share in respect of the year ended 31 January 2024 which will be paid on 1 December 2023 to shareholders on the register at the close of business on 17 November 2023.
*5 EARNINGS PER SHARE*
Earnings per share *Half year to 31 July 2023* *Half year to 31 July 2022*
Revenue return per ordinary share 0.88p 0.04p
Capital return per ordinary share 9.33p 183.74p
Earnings per ordinary share (basic and diluted) 10.21p 183.78p
Weighted average number of shares *68,040,279* *68,517,055*
Revenue return per ordinary share is calculated by dividing the revenue return attributable to equity shareholders of £0.6m (2022: £0.0m) by the weighted average number of ordinary shares outstanding during the year.
Capital return per ordinary share is calculated by dividing the capital return attributable to equity shareholders of £6.4m (2022: £125.9m) by the weighted average number of ordinary shares outstanding during the year.
Basic and diluted earnings per ordinary share are