Intermediate Capital profits drop by 25pc

City A.M. Reporter
INTERMEDIATE Capital Group, a provider of mezzanine financing, said yesterday full-year profit fell 25 per cent due to lower realisation of gains from investments and higher provisions for bad loans.

ICG said the lack of available senior debt in the market in the early part of the financial year and the continuing valuation gap between sellers and buyers resulted in low realisations and realised capital gains during the year.

“Since the turn of the calendar year we have seen more liquidity in the market and, should this remain, we expect that this will result in an increase in realisations and exits in the next twelve months,” chief executive Christophe Evain said.

Adjusted profit before tax fell to £148.3m in the year ended 31 March, from £198.8m in the prior year.

Assets under management rose 13 per cent to €12.9bn for the year.

Gross provisions increased 69 per cent to £141.1m, hurt by a higher-than-expected level of provisions in the first half, mainly arising from two large assets.