• The Trust aims to provide shareholders with long-term capital growth through investment in unquoted companies both directly and through private equity funds.
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Key facts

  •  Graphite Enterprise Trust plc changed name to ICG Enterprise Trust plc on 1 February 2016. This follows Intermediate Capital Group's (ICG) acquisition of the private equity fund investment business of Graphite Capital Management LLP who were the managers of Graphite Enterprise Trust. 

    There is no change to the investment objectives or dividend policy of the trust.
     
    Further details can be found on the announcements from both ICG and Graphite Capital on the right hand side  of this page.

    Key points

    • ICG Enterprise Trust plc provides access to a diverse portfolio of mature companies, mainly in established European private equity markets with more than 350 underlying companies.
    • ICG, the manager, is a UK headquartered specialist asset manager in private debt, credit and equity. It currently manages €20bn of assets including its own balance sheet of £2.3bn. ICG’s 270 employees, including 120 investment professionals, operate from 12 offices in 11 countries covering Europe, USA and Asia.
    Trust facts
    Investment manager ICG
    Benchmark FTSE All-Share Index
    Sector Private Equity
    Launch date 1981
    Total equity £521 million (as at 31.01.16)
    Currency Sterling
    ISIN GB0003292009
    SEDOL 0329200

    Key dates
    Annual general meeting June
    Year end 31 January
    Dividend payment date(s) June
    Ex-dividend date(s) Jun


    Trust commentary

    Unaudited results for the nine months ended 31 October 2016

    Performance overview  
     

    Net asset value per share Total Return1 for the quarter of 3.2% (nine months to 31 October 2016 of 13.5%), with the net asset value per share at 813.5p.  In the last twelve months, net asset value per share increased by 19.4%, while the share price increased by 8.8% against a 12.2% increase in the FTSE All-Share Index

    The Portfolio1 is valued at £518.6m at 31 October 2016, driven by strong underlying growth of 8.6%, and favourable foreign exchange movements of 9.9% for the nine months to 31 October 2016

    In line with our strategy of becoming fully invested and reflecting the benefit of being part of ICG, the investment rate increased in the quarter with investments of £43.4m outstripping realisations of £17.3m

    Share price up to 650p (implying a 20.1% discount to the net asset value) from 545p at 31 January 2016, with a Share price Total Return for the period of 22.5%. The FTSE All-Share Index was up 16.6% in the same period

    The long term performance2 of the Company remains strong, with the net asset value outperforming the FTSE All-Share Index over one, three and ten years 

    Performance to  31 October 2016

    1 year

    3 year

    5 year

    10* year

    Net assetvalue per share

    19.4%

    28.5%

    57.1%

    118.8%

    Share price

    8.8%

    27.6%

    92.4%

    107.1%

    FTSE All-Share Index

    12.2%

    16.8%

    57.4%

    76.5%

     * As the Company changed its year end in 2010, the ten year figures are for the 121 month period to 31 October 2016.

    Commenting on performance, Mark Fane, Chairman, said

    “The environment for realisations continues to be positive despite volatility in markets and geopolitical concerns, and the prospects for further growth in unrealised valuations remain strong. Our investment strategy, which is fundamentally unchanged following the move to ICG, gives us the flexibility to adapt the mix of primary funds, secondaries and co-investments to changing market conditions and to deploy cash where we see the best relative value. The move to ICG is generating significant new investment opportunities. In addition, ICG is providing access to a range of specialist functions to provide support and enhance the management of the Company.”

    Footnote

    1. Included in this Quarterly Update are Alternative Performance Measures (“APMs”). APMs have been used if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company, and for comparing the performance of the Company to     its peers and its previously reported results. The Glossary includes further details of APMs and reconciliations to IFRS measures, where appropriate. The rationale for the APMs was discussed in detail in the Manager’s Review in the July 2016 interim results. The Glossary includes a reconciliation of the Portfolio to the most relevant IFRS measure.     

    2. All performance figures are on a total return basis, including the effect of re-invested dividends.

     

    Activity in the quarter to 31 October 2016

    Investment activity

    The Portfolio generated £17.3m of proceeds in the quarter to 31 October 2016. This brings the total proceeds year to date to £62.8m (nine months to 31 October 2015: £88.2m).

    Seven full realisations were completed during the quarter, accounting for £7.7m of the proceeds received at an average return of 2.8 times cost. The remaining £9.6m of total proceeds was generated by a combination of refinancings, sell-downs of listed holdings by third party managers and other partial realisations.

    In the nine months to 31 October 2016, 30 full realisations were completed with 22 post-crisis investments generating an average uplift on realisation of 32% for a return of 2.9 times cost. The eight pre-crisis investments dragged the average return down generating an average uplift on realisation of 8% at a return of 1.2 times cost.

    New investment activity in the quarter totalled £43.4m, comprising fund drawdowns of £24.0m and secondary purchases and co-investments of £19.4m. This brings the total invested in the nine months to £73.7m (nine months to 31 October 2015: £37.5m), in part reflecting the investment opportunities generated from our relationship with ICG.

    During the quarter to 31 October 2016 three new commitments were made to third party funds, BC European Capital X (€15.0m), Permira VI (€10.0m) and Gridiron Capital III ($15.0m). A further two new commitments were made to ICG funds, $15.0m to ICG Asia Pacific III and €0.5m to ICG Europe V through a secondary transaction. Finally, two new co-investment commitments were made to System One ($10.0m) and Roompot (€10.0m). Please refer to further information in the supplementary information.

    Since the change of Manager on 1 February 2016, 13 new commitments and discretionary investments totalling £135m have been completed, of which 40% has been sourced directly or indirectly from ICG.

    Cash and liquid assets1

    Cash and liquid assets decreased by £33.0m to £77.4m mainly as a result of a net £26.1m invested in the Portfolio in the three months to 31 October 2016.  Non-investment cash flows and favorable currency movements increased cash by £1.0m.  The interim dividend of 10.0p per share returned £7.1m to shareholders. The Company also bought back 98,919 shares for £0.6m.  

    Movement in liquid assets

    3 months to

    9 months to

    £m

    31 October 2016

    31 October 2016

    Additions

    (43.4)

    (73.7)

    Cash proceeds generated by the portfolio (including income)

    17.3

    62.8

    Net cash generated by the investment portfolio

    (26.1)

    (10.9)

    Non-investment cash flows

    (2.2)

    (6.8)

    Effect of changes in foreign exchange rates

    3.2

    5.9

    Cash outflow before shareholder distributions

    (25.1)

    (11.8)

    Dividends

    (7.1)

    (11.4)

    Share buy-backs settled in the period

    (0.8)

    (3.2)

    Net cash movement

    (33.0)

    (26.4)

    Opening cash and liquid assets

    110.4

    103.8

    Closing cash and liquid assets

    77.4

    77.4

    Footnote

     1. All balance sheet data is presented on a look-through basis to the investment portfolio held by the Company, which is consistent with the commentary in previous annual and interim reports.

     

    Balance sheet

    The summary balance sheet and commitment position at 31 October 2016 is set out below.

     

    31 October 2016

    % of total assets

    31 January 2016

    % of total assets

     

    £m

    £m

    Total portfolio

    518.6

    87.6%

    428.2

    80.3%

    Cash and liquid assets

    77.4

    13.1%

    103.8

    19.5%

    Other net current (liabilities)/assets

    (4.3)

    (0.7%)

    1.3

    0.2%

    Net assets

    591.7

    100.0%

    533.3

    100.0%

    Equity shareholders’ funds

    575.7

     

    521.3

     

     

    31 October 2016

    31 January 2016

     

    £m

    £m

    Cash and liquid assets

    77.4

    103.8

    Undrawn bank facility

    105.3

    97.1

    Total liquidity

    182.7

    200.9

     

     

     

    Outstanding commitments

    334.3

    253.8

    Less: Total liquidity

    (182.7)

    (200.9)

    Over-commitment

    151.6

    52.9

    Overcommitment as % of shareholders’ funds

    26.3%

    10.1

  • The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Emerging Markets, Unquoted Companies and Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile. The trust may invest in hedge funds or private equity funds which are not normally available to individual investors, exposing the trust to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess.
  • share price

    695.00p

    24 January 2017

Past performance is not a guide to future results. The value of investments can go down as well as up.

Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.

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