Foresight Group (FSG) H2 2024 earnings summary

Executive summary

• Celebrated 40 years in business, focusing on alternative asset management across infrastructure, private equity, and capital management, with a core emphasis on energy transition and decarbonization opportunities.

• Achieved strong earnings momentum and profitable growth, supported by a scalable and diversified business model in infrastructure, private equity, and capital management sectors.

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

Financial highlights

• Core EBITDA pre-SBP grew 18% year-over-year to £59.3m, with a 35% CAGR over three years and a margin of 42.0%.

• Revenue increased 19% year-over-year to £141.3m, with 87% recurring revenue.

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

• AUM closed FY24 at $12.1 billion, rising to $12.6 billion post-period due to strong fundraising.

• Total dividend per share increased by 10% to 22.2p, with basic EPS at 32.9p.

Outlook and guidance

• Updated guidance targets doubling core EBITDA pre-SBP over the next five years, primarily through organic growth.

• Expecting continued margin expansion, maintaining 85%-90% recurring revenue, and a 60% dividend payout ratio.

• Q1 FY25 AUM at c.£12.6bn, with robust fundraising and deployment pipeline, and continued expansion in private equity and infrastructure strategies.