Intermediate Capital hit by impairments

Marion Dakers
INTERMEDIATE Capital Group (ICG) profits have slumped due to impairments and a lethargic investment market, but the specialist financier has still managed to attract €2.3bn (£1.8bn) to its latest fund.

ICG said pre-tax profits for the six months to the end of September fell 64 per cent to £39.6m, after it booked impairments of £64.8m in its investment arm, mostly due to two assets.

“The remainder of the portfolio is broadly resilient but the economic environment remains volatile,” said chief executive Christophe Evain.

In spite of the moribund market, ICG has done a handful of deals including a buyout of food firm Symington’s, financing the acquisition of ceramics firm Esmalglass and the purchase of a loan book from an unnamed European bank.

ICG deployed £469m in the period, including £157m for its investment company.

“The pipeline of new business looks quite good but given the scale of impairment we expect to significantly downgrade our forecasts for this year,” said analysts at Numis, which has a “hold” rating on the stock.

The fund management business fared better, with its new ICG Europe Fund V beating its €2bn fundraising target, making it the largest new European fund of its kind since 2007.

Total assets under management rose six per cent to €12.1bn during the half-year. Fee income rose four per cent to £44.8m, including an 11 per cent rise in fees from third parties to £33.6m.