Foresight Group reports rise in full-year revenue, earnings

27th Jun 2024 14:49

(Sharecast News) - Foresight Group reported robust financial results for the year ended 31 March on Thursday, with significant growth in revenue and earnings.

The London-listed investment manager in real assets and growth capital achieved a 19% increase in total revenue, reaching £141.3m.

Core EBITDA pre-SBP rose 18% to £59.3m, driven by successful fundraising and effective cost management.

Despite challenging market conditions, Foresight's assets under management (AUM) and funds under management (FUM) saw only modest declines, ending the year at £12.14bn and £8.4bn, respectively.

On a constant currency basis, AUM increased to £12.3bn.

The decrease in FUM was put down to reductions within the lower-margin Foresight Capital Management division, and adverse foreign exchange movements.

Foresight said it maintained high revenue visibility, with recurring revenue within the target range of 85% to 90%.

To support shareholder returns, the board recommended a final dividend of 15.5p, bringing the total dividend for the year to 22.2p, up 10% on the year.

Additionally, the share buyback programme was extended from £5m to £10m, using existing cash resources.

Looking ahead, Foresight said it aimed to double its core EBITDA pre-SBP over the next five years, focusing on organic growth and leveraging its scalable infrastructure strategies.

The group said it was also planning to maintain its recurring revenue target and expand profit margins as it scaled.

Current trading indicated positive momentum, with AUM and FUM estimated to have increased by £0.5bn in the first quarter of the 2025 financial year.

"We have delivered another strong year of profitable growth as the group benefited from increasing demand for our higher margin retail vehicles and successful institutional fundraising activity from our private equity business," said executive chairman Bernard Fairman.

"We have carried this strong earnings momentum into the current financial year, having already delivered £500m in assets under management growth in the first quarter of the 2025 financial year.

"This increase was driven by the combination of further success in retail fundraising and the recent €300m first close of our flagship energy transition fund, FEIP II, following improving sentiment in the institutional infrastructure fundraising market."

Fairman said that, having achieved significant profitable growth since listing on the London Stock Exchange in 2021, the company was now updating its growth guidance to double core EBITDA pre-SBP over the next five years.

"Delivery will be underpinned by our long established, highly profitable regional private equity and retail tax efficient products, alongside our highly scalable infrastructure and FCM strategies.

"Combined, these strengths give us confidence that our diversified business model will continue to create meaningful shareholder value in 2025 and beyond."

At 1152 BST, shares in Foresight Group Holdings were up 1.56% at 457p.

Reporting by Josh White for Sharecast.com.