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Hardman & Co

Research from Hardman & Co

Investment research on quoted companies and funds

Hardman & Co is a multi-disciplinary financial consultancy and investment research firm, employing highly experienced analysts and professionals with a broad range of capital markets expertise. Our clients are public and private businesses as well as fund managers, ranging from start-ups to £1 billion+ market capitalisations. Hardman & Co offers corporate research & consultancy, serving the needs of both public and private companies. We produce gold-standard research with a global reach for trading and investment companies, as well as providing market commentary and analysis. In addition, we carry out a number of bespoke investment-related assignments, including due diligence on bond listings, assessments of private company valuations and other corporate advisory services. We engage with the market through traditional and digital media, offering illuminating video content on corporate management strategy, results communication, interviews and in-house sector discussion.

Equity Bottom-Up

ICG Enterprise Trust plc / Equity Bottom-Up

<ul><li>The key message from ICGT’s 1HFY’25 results (to July) is the continued strength of the operating companies, which delivered an average 14% LTM EBITDA growth.</li><li>Margins have widened by ca.5% (average revenue growth 9.4%), which should help allay some concerns over the impact of the higher-rate environment.</li><li>New investment is accelerating, and realisation activity continued with an average 26% uplift to carrying values on exit.</li></ul>

The key message from ICGT’s 1HFY’25 results (to July) is the continued strength of the operating companies, which delivered an average 14% LTM EBITDA growth.Margins have widened by ca.5% (average revenue growth 9.4%), which should help allay some concerns over the impact of the higher-rate environment.New investment is accelerating, and realisation activity continued with an average 26% uplift to carrying values on exit.

ICG Enterprise Trust plc: Portfolio: 14% EBITDA growth + widening margins

<ul><li>The key messages from ICGT’s June 2024 shareholder seminar were i) ICGT has a focused and differentiated investment strategy with a dedicated investment team, ii) operating performance remains strong and capital structures are well positioned, iii) debt pricing is reducing and debt availability is accelerating, iv) access to the ICG platform brings substantial benefits, and v) the board has a focused and deliberate approach to long-term shareholder value.</li><li>In our view, what defines ICGT’s uniqueness is the “defensive growth” approach, combined with the ICG manager benefits.</li><li>This has delivered five-year, local currency portfolio returns of 17.1% CAGR, NAV p/sh.</li></ul>

The key messages from ICGT’s June 2024 shareholder seminar were i) ICGT has a focused and differentiated investment strategy with a dedicated investment team, ii) operating performance remains strong and capital structures are well positioned, iii) debt pricing is reducing and debt availability is accelerating, iv) access to the ICG platform brings substantial benefits, and v) the board has a focused and deliberate approach to long-term shareholder value.In our view, what defines ICGT’s uniqueness is the “defensive growth” approach, combined with the ICG manager benefits.This has delivered five-year, local currency portfolio returns of 17.1% CAGR, NAV p/sh.

Hardman & Co Research: ICG Enterprise Trust Plc (ICGT): CM day 2024 - defensive growth value creation

<ul><li>The key message from ICGT’s FY’24 results (to January) is the continued strength of the operating companies, which keep delivering mid-teen EBITDA growth.</li><li>Despite challenging markets, margins have widened, which should help allay some concerns over the impact of the higher-rate environment.</li><li>Target returns are “broadly unchanged”.</li></ul>

The key message from ICGT’s FY’24 results (to January) is the continued strength of the operating companies, which keep delivering mid-teen EBITDA growth.Despite challenging markets, margins have widened, which should help allay some concerns over the impact of the higher-rate environment.Target returns are “broadly unchanged”.

ICG Enterprise Trust - FY’24: portfolio companies performing strongly

<ul><li>ICGT’s discount, like most of the listed PE sector, is well above historical averages.</li><li>We also consider how the triggers to a potential re-rating have evolved in the recent past and are likely to evolve in the near future.</li><li>While many of these factors apply across the PE industry, we explain how ICGT’s position, portfolio and strategy mean it is uniquely well positioned in this environment.</li></ul>

ICGT’s discount, like most of the listed PE sector, is well above historical averages.We also consider how the triggers to a potential re-rating have evolved in the recent past and are likely to evolve in the near future.While many of these factors apply across the PE industry, we explain how ICGT’s position, portfolio and strategy mean it is uniquely well positioned in this environment.

ICG Enterprise Trust Plc (ICGT) - Putting the discount into perspective

Thematic (Sector/Industry)

<ul>
<li>Feature article: “ROOM” (Running Out of Money) risk, How managing liquidity risk can sustain corporate value and maintain shareholder confidence</li>
<li>As we come close to the end of a very challenging year for many UK entrepreneurs, as well as a frustrating period for shareholders, it is time to address one elephant in the ROOM! ROOM stands for “Running Out of Money”.</li>
<li>The risk of doing so, or the perception that it could occur, can destroy corporate values and prematurely paralyse a business. </li>
</ul>


Feature article: “ROOM” (Running Out of Money) risk, How managing liquidity risk can sustain corporate value and maintain shareholder confidence
As we come close to the end of a very challenging year for many UK entrepreneurs, as well as a frustrating period for shareholders, it is time to address one elephant in the ROOM! ROOM stands for “Running Out of Money”.
The risk of doing so, or the perception that it could occur, can destroy corporate values and prematurely paralyse a business. 


United Kingdom

ICG Graphite Enterprise Trust plc is an investment trust incorporated in the United Kingdom with a diversified portfolio of equity assets. The aim of the Fund is to provide shareholders with long-term capital growth through investment in unquoted companies, mainly through specialist funds but also directly.

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ICG Enterprise Trust plc (ICGT LN)

ICG Enterprise Trust plc: Portfolio: 14% EBITDA growth + widening margins

The key message from ICGT’s 1HFY’25 results (to July) is the continued strength of the operating companies, which delivered an average 14% LTM...

Hardman & Co

Hardman & Co Research: ICG Enterprise Trust Plc (ICGT): CM day 2024 - defensive growth value creation

The key messages from ICGT’s June 2024 shareholder seminar were i) ICGT has a focused and differentiated investment strategy with a dedicated...

Hardman & Co

ICG Enterprise Trust - FY’24: portfolio companies performing strongly

The key message from ICGT’s FY’24 results (to January) is the continued strength of the operating companies, which keep delivering mid-teen EBITDA...

Hardman & Co

ICG Enterprise Trust Plc (ICGT) - Putting the discount into perspective

ICGT’s discount, like most of the listed PE sector, is well above historical averages. We also consider how the triggers to a potential re-rating...

Hardman & Co

The Hardman & Co Monthly: November 2024

Feature article: “ROOM” (Running Out of Money) risk, How managing liquidity risk can sustain corporate value and maintain shareholder confidence

Hardman & Co

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