Intermediate Capital Group, a mezzanine finance provider working throughout Europe, have claimed a 25 per cent shortfall on last years results, citing fears over growth within the market.
The Group argue the decrease in profit is a result of lower capital gains from a reduction in net interest income, principally, due to a lack of refinanced debt to perform the ‘top up’ finance upon.
The final results show adjusted profit before tax fell to £148.3 million in the financial year ending 31 March, from £198.8 million in the previous year.
Speaking on moving forward, after a poor start to the year, Christophe Evain, Chief Executive at Capital Group, said: “Since the turn of the calendar year we have seen more liquidity in the market and, should this remain, we expect that this will result in an increase in realisations and exits in the next twelve months”.
The results come at a time when many within the financial stratosphere are rejoicing growth within the market, from a 13-year high in the stock market to yet another 4 per cent rise in mortgage lending for the month. With borrowers increasing on a daily basis, in principle, a mezzanine finance provider should be surpassing the misadventures of yesteryear, when lending activity is at its strongest since the financial crash in 2008.
The Group did however report a 69 per cent gross provision increase to £141.1 million and a 13 per cent rise on assets under management.
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