Foresight reports strong trading in first half

10th Oct 2024 13:18

(Sharecast News) - Foresight Group, an investment manager in real assets and growth capital, updated the market on its first-half trading on Thursday, with core EBITDA before share-based payments totalling £29m, in line with management expectations to double core EBITDA over a five-year period.

The FTSE 250 firm said assets under management reached £12.6bn, an increase from £12.1bn at the end of the 2024 financial year, while funds under management rose to £8.8bn from £8.4bn.

Key assets under management developments included a €300m first close for Foresight Energy Infrastructure Partners II SCSp and £241m raised in higher-margin retail vehicles.

Foresight Capital Management saw a positive investment performance of £56m, benefiting from an improving outlook for interest rate reductions, with net outflows decelerating to £111m.

Recurring revenue remained high, within the 85% to 90% target range, supported by performance fees from a strong period of realisations in the private equity division.

"We delivered another period of stability and growth in the first half of the 2025 financial year, driven by effective retail fundraising and the initial close of our flagship institutional energy transition fund, FEIP II," said executive chairman Bernard Fairman.

"This momentum is in line with our expectations and keeps us on track to deliver our five-year growth guidance."

Looking ahead, Fairman said the anticipated unwinding of high interest rates and the narrowing valuation gap between public and private markets would drive improved investor sentiment.

"This positive shift will support our fundraising ambitions and create opportunities for value-accretive acquisitions from our cash-generative business."

At 1230 BST, shares in Foresight Group Holdings were down 1.17% at 506p.

Reporting by Josh White for Sharecast.com.