Foresight Group (FSG) H2 2024 earnings summary

Executive summary

• Celebrated 40 years in business with a diversified and resilient model across the UK, Europe, and Australia, focusing on energy transition, infrastructure, and private equity.

• Achieved strong earnings momentum and profitable growth, supported by scalable operations and a diversified investor base.

• Demonstrated high predictability in future revenue flows and resilience through long-duration capital.

• Positioned to capitalize on global energy transition and decarbonization, with significant opportunities in underserved SME funding markets and scalable liquid strategies.

Financial highlights

• Core EBITDA pre-SBP grew 18% year-over-year to £59.3m, with a 35% CAGR over three years; 70% of growth was organic, 30% from acquisitions.

• Margins increased from 34.6% to 42% over three years, reaching 43% in H2 FY24.

• Revenue increased 19% year-over-year to £141.3m, with 87% recurring and 21% non-GBP denominated.

• Dividend increased 10% to 22.2p, with a final dividend of 15.5p.

• Cash generated from operating activities closely aligned with Core EBITDA pre-SBP; closing cash position at £45.0m.

Outlook and guidance

• Updated guidance targets doubling Core EBITDA pre-SBP over the next five years, driven organically, with M&A as a potential accelerator.

• Targeting 85%-90% recurring revenue, expanding profit margins, and a 60% dividend payout ratio.

• Confident in delivering further profitable growth in FY25, supported by strong Q1 AUM/FUM growth and successful fundraising.