Intermediate Capital (LON: ICP) have seen their shares spike on Tuesday as the firm reported an earnings rise to shareholders amid an impressive update.
Shares of Intermediate Capital were 4.28% to the good trading at 1,558p. 19/11/19 12:42BST.
The firm alluded to its diversification strategy causing the impressive results, which saw continued asset growth.
Additionally, the FTSE250 (INDEXFTSE: MCX) listed firm saw a 32% interim profit rise in its fund management business.
The company’s assets under management amounted to €41.07 billion at September 30, up 11% from €37.08 billion as at March 31, with €4.61 billion of new money raised across 14 strategies, which will put shareholder faith in the new diversification approach from Intermediate.
For the six months to September 30, Intermediate Capital recorded group pretax profit of £153.4 million, up 24% from £124.0 million a year ago, helped by a 15% increase in profit in the company’s investments business to £68.4 million.
Intermediate Capital Chief Executive Benoit Durteste said: “These strong results demonstrate our ability to attract assets to a broad range of new fund strategies that are adjacent to our existing portfolios. Our diversification has resulted in continued healthy fundraising results and the 32% growth in Fund Management Company profits.”
“We are well-positioned to deliver sustainable growth. Unlike traditional asset managers, we do not suffer short term outflows as a consequence of the movement in financial markets; we are maintaining or increasing average fee rates on an underlying fund basis,” Durteste added.
The fund management sector saw a 32% rise in interim profit from £64.4 million to £85 million, which shows progression for the firm.
Intermediate Capital expects its annual operating margin to be in excess of 50%, up from 43% previously, supported by a positive outlook.
Indeed these figures are impressive from Intermediate, but competitors have also made gains which will further stimulate Intermediate to develop their strategies.
Brewin Dolphin Holdings plc (LON: BRW) have seen their funds and income increase, whilst AJ Bell PLC (LON: AJB) reported strong gains in the second quarter.