In key news on UK stocks, Intermediate Capital Group (GB:ICG) shares surged by nearly 4% as of writing, after the company reported higher profits and dividend growth in its annual results for FY24. The company’s pre-tax profits jumped by 132% year-over-year to £597.8 million. Additionally, the company raised its total dividend for FY24 by 2% to 79p per share. This signifies the company’s 14th consecutive annual dividend hike.
After the release of solid results, the company’s shares reached an all-time high. Year-to-date, ICG stock has gained 45%.
Intermediate Capital Group is an asset management and private equity investment company with a proven track record spanning over 30 years.
ICG’s Strong Performance in FY24
Intermediate Capital’s performance was boosted by management fee income, which exceeded half a billion pounds for the first time, marking a 5% year-over-year increase. Meanwhile, performance fee income surged by 276% to £73.7 million.
During the same period, AUM (assets under management) surged by 23% to $98.4 billion, with fee-earning AUM increasing by 11% to $69.7 billion. As of March 31, 2024, ICG had $26.3 billion in AUM ready for new investments.
The company secured $13 billion in funds during the year, surpassing its fundraising guidance. Moving forward, it aims to raise a minimum of $55 billion in total over the next four years.
Brokerage firm Panmure Gordon praised the medium-term guidance of fundraising of $13.8 billion annually, as compared to the consensus estimate of $12.4 billion and $14.1 billion for FY25 and FY26, respectively. The broker also noted that as the share price has risen, expectations have increased as well, thereby increasing the risks for the company.
What is the Share Price Forecast for Intermediate Capital Group?
According to TipRanks consensus, ICG stock has received a Strong Buy rating based on all Buy recommendations from six analysts. The ICG share price forecast is 2,564.00p, which implies a growth rate of 6% at the current trading level.
