"LSE:ICP:Intermediate Capital Group's meteoric rise over the past year has had some investors looking nervously over their shoulders. However, today's forecast-busting half-year results from the specialist asset manager not only provided ..."
Have I missed the result of the "review to determine a progressive dividend policy that
will better link our ordinary dividends to our robust business model"? This was flagged by our Chairman, Kevin Parry on 15 November.
link in my previous post to the prospectus which says the below:
''TAXATION OF SPECIAL DIVIDEND AND SHARE CONSOLIDATION
A limited summary of the tax consequences of the Special Dividend and the Share Consolidation for certain categories of UK resident shareholders is set out in paragraph 6 of Appendix I to this document.
Shareholders should read paragraph 6 of Appendix I to this document and, if they are in any doubt as to their tax position, consult their own independent tax advisers.''
''Assuming that the Finance Bill 2016 is enacted in its current form, if an Individual UK Resident Shareholder receives the Special Dividend from the Company, the Special Dividend, together with all dividends from other sources, will form part of the shareholders total income for income tax purposes and will constitute the top slice of that income. A nil rate of income tax will apply to the first £5,000 of taxable dividend income received by the shareholder in a tax year.''
But download & read it all!!
ii have so far only paid me the final div on Friday but the special is yet to come!! I have some more with H-L and all the div arrived Friday. All in ISA so luckily no tax worry!
Hello, sorry this question must be asked many times, but....How do we treat the special dividend, as income or capital repayment? Does anyone out there have the time to point me in the right direction. I have looked for a statement from the company, but found nothing.
Capital gain induced or income tax!! Thanks
Should ICP re-visit its decision to raise gearing to 0.8x-1.2x given the current uncertainties surrounding the regulatory regime under which it will be operating in the EU post Brexit? Seems like now not a bad time to retain spare capacity on the balance sheet.
Given the fact the £200m special dividend is a contributor to achieving that gearing goal, should ICP not explain why it believes that distribution remains appropriate, before pressing on? There has after all been a bump in the road/seismic shift (depending on your pov) since the special divi was advertised.
That's a question for ICP?
For other holders of ICP ... what in your view is the central case (the most likely outcome) - Norway (EEA+ or-), Switzerland or floating free under WTO rules
Investors are going to be even more needy for yield but underlying assets just got wobblier. so ... ? net good, neutral or bad?
Im trying to grapple with the difference between market cap. and NAV for ICG as they move from mezzanine debt to 'specialist asset manager'. Tangible NAV quoted as 386p in morningstars figures but as ICG have both investment funds and debt then overall value is linked to the performance from both. This years Annual Report on first glance looks encouraging but EPS is down, borrowings are up and the dividend hasnt gone up much considering I now hold fewer shares than 2 years ago (and will be even fewer from August).
The capital markets day presentation from feb 2016 has some interesting data also suggesting their long term strategy will produce good returns.
The return of capital this time is 63.4p per share with 'special' ex-div 28/7/16 paying 5/8/16. Consolidation is 8 for 9 (vs 6 for 7 in 2015)
The final div is 15.8p ex-div 16/6/16
I will wait to see if there are any more dips towards to 550 level before buying here again.
Several directors sold a lot of shares in early June and Im sure I saw a RNS on 9th June detailing sales to cover tax liabilities but its now disappeared!
More detail about the consolidation here http://www.icgam.com/shareholders/documents/019408_ICG_NOM_2016.pdf
Good luck all
Why returning cash is good financial management ....
To exaggerate for effect, think of a business where two thirds of its value is in cash and one third is in operating assets. Trying to get a decent return on TOTAL assets, including that cash pile, is nigh on impossible. So it is prudent to have an appropriate amount of cash on the balance sheet, no more. (And this is one cash generative business).
2) The company is giving you back your cash. You have an option to buy more ICG shares, buy other shares or take a longer holiday. There is value in that option (who knows if it s more valuable than the cost you incur if you choose to increase your percentage holding in the company.. but it is worth something.)
3) If you had reinvested what you were given in special dividend last year, you would be 10% + up on that investment.
What no-one has explained is why the company has said it is NOT going to do any more special dividends - seems like it is going to struggle to hit its gearing target if it keeps churning out cash, unless it increases its normal dividend quite substantially.
Finally, I ask again, how are pure play Private Debt Managers (ICG is not yet pure play, but no matter) valued - and what is the nearest comparator.
I am a holder of shares ... and expect my kids will enjoy the benefit of that decision, not me.
Once again cash will be distributed to shareholders in return for a chunk of their shares. All smoke and mirrors which did not give me confidence it would enhance their value last time around.
I didn't like it then, and I don't like it now.
Sold on yesterday's peak before results. May buy back if there is a significant drop before ex divi date, or may wait until the dust settles. Or may just walk away.
Not specifically today, but it's a continuation of the rise since early Feb. Up over 30% so far. Suspect it might pause for breath soon, having reached all time high and especially as we approach ex div date. Only IMO of course.
MRG, I agree that we each hold the same fraction of the company we held before, but the value of the company has gone down to 6/7 of what it was previously. We seem to have been refunded the value of the capital loss dressed up as a dividend.
The consensus forecasting of 27.15p/share is based on an anticipated improvement on the historic divi growth trend, and probably has nothing to do with the 6 for 7 share reduction.
We shareholders now have a wad of cash and each hold the same fraction of the company we held beforehand.
I have a question for anyone in the know: will be annual dividend go up by the factor 7/6 to reflect the fewer shares in issue? That is, does the company intend to pay out the same total annual dividend to the reduced number of shares? The FT site suggests so:
This has been called a dividend.....is it a dividend or a capital repayment?
I ask as I have already used my capital gains zero allowance and don't want to pay CGTax.
Also I am not sure now what my gain per share is!
"LSE:ICP:Intermediate Capital, one of the world's largest mezzanine finance specialists, broke above 500p for the first time since spring 2013, and with good reason. A bullish third-quarter update has raised the prospect of a better-than-expected ..."
Todays' results look encouraging. Should help take ICP over £5.00
Fundraising momentum continues with 3.1bn of third party money raised in the nine months to 31 December 2014. A full product pipeline is expected to result in very strong fundraising over the coming months
New third party money raised in the quarter to 31 December 2014 totalled 1.4bn, with 0.2bn of realisations in older funds
AUM increased by 8% in the quarter to 31 December 2014 to 14.9bn; third party fee earning AUM increased 12% to 10.8bn
Investment pace for direct investment funds maintained in competitive market and healthy pipeline of investment opportunities across products
Private equity secondaries business launched, as previously announced, with hire of specialist team and first investment
5 year return may be good but we are still 50-60p down on this date last year which more than wipes out the divi.
I'm still holding, and pleased with the rise over the last week, but would have done better by selling last year. There have been much lower entry points during the year.
Surprising not to see more comment on this share which has done me proud, with the latest results announced, up around 70% on my average entry price of 260p. With a yield over 5% and a well managed portfolio of assets under management this is one to tuck away for the long term .
ICG is living off deals done some years ago and showing gains as these are realised. But where is the new business? In many sectors we would be looking at some metric of new business such as order book, "sales", like for like and so on. In the case of ICG this is all hidden but, as seen by the fall in the balance sheet, the writing is on the wall.
Oriel Securities Ltd reaffirmed their buy rating on shares of Intermediate Capital Group (LON:ICP) in a report issued on Tuesday, American Banking and Market News reports. They currently have a GBX 515 ($8.57) target price on the stock.
Oh dear. Cash flow was so high because of realisations leading to 25% fall in the loan book. Gains on investments flatter the numbers but as legacy balance sheet assets are realised, and replaced with 3rd party fund assets, over the long term, such gains will surely diminish.
The fall in AUM also demonstrates the strong headwinds ICG face - in the current market they need to run hard to standstill.
This trades at a small premium to book value which is probably about right given the low profitability of the FMC.
Strong interim results with earnings up, and cash flow circa £570m. Broker forecasts edging up to above 50p per share, and the expectation is that they will be moved upwards throughout the remainder of this FY. So ICP are trading on a very undemanding PER of circa 8 and with the business environment strengthening, this rates as a BUY.
SYDNEY--Australian private equity firm Pacific Equity Partners has sold a 25% stake in share registry operator Link Administration Holdings Pty Ltd. to Macquarie Group Ltd. (MQG.AU) and <b>Intermediate Capital Group PLC (ICP.LN)</b> for around 200 million Australian dollars (US$187 million), a person familiar with the matter said Friday.
Macquarie is offering part of that stake to fund managers in what's being described as a "pre-IPO placement", the person said, adding that Link will likely join the Australian Securities Exchange in 2014 with a market value of more than A$800 million.
Link Administration Holdings includes share registry arm Link Market Services and superannuation administration arm AAS. PEP bought the registry business of ASX Ltd. (ASX.AU) and Perpetual Ltd. (PPT.AU) in 2005 for A$132 million and has since expanded operations into countries like South Africa, Canada and India. The company has forecast earnings before interest, tax, depreciation and amortization for the year to June 30, 2014 of around A$140 million.
In June, Link secured a three-and-a-half year A$710 million syndicated loan facility from Westpac Banking Corp. (WBC.AU) and Commonwealth Bank of Australia Ltd. (CBA.AU) after a process run by Goldman Sachs Group Inc. in 2012 failed to find a strategic partner to help fund Link's global expansion.
Link competes with Australia's dominant share registry services provider Computershare Ltd. (CPU.AU), which has risen 24% in the year-to-date, outperforming the benchmark S&P/ASX200 index, which has added 16.2%.
PEP, which separately owns the largest independent U.S. registry American Stock Transfer and Trust Co., is currently preparing to list credit information provider Veda Advantage Ltd., its first IPO exit since selling KFC franchisee Collins Foods Ltd. (CKF.AU) in August 2011
In case you hadn't noticed everything has gone wobbly in the past few days.
ICG needs to be valued i two parts - the fund management business on an earnings basis and the investment business on book value. But my suspicion is many investors simply look at the yield whilst not noticing that it is not covered by net cash flow before movements on investments.
I feel like i have awoken from a long snooze with this one. Sad I did not buy now glad I didn;t ... or maybe not.
There is so little comment on this board i ask this question with very little hope of being answered by anyone before the end of the decade.
But ask i will anyway.
Does anyone know how this company is valued by the brokers ( i don;t mean their target but their rationale) cos it has gone up, I see, as steady as an arrow but in the last few days suddenly gone all wobbly.
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