Petershill Partners (PHLL) has announced its annual results for the year ended 31 December 2023. The company, which follows a unique M&A strategy, raised $23 billion of fee eligible assets, although notably earnings were down on the year prior given lower transaction activity.
Highlights for the year included:
- Adjusted profit after tax of $200m for the year ended 31 December 2023 (2022: $273m).
- Total income of $319m (2022: $379m) and adjusted EBIT1 of $284m (2022: $336m) with adjusted EBIT margin of 89% (2022: 89%).
- Adjusted EPS of 17.6 cents (2022: 23.7 cents).
- IFRS profit after tax of $321m (2022: $453m loss) and IFRS EPS of 28.4 cents (2022: (39.4) cents), includes the change in the carrying value of investments.
- The board has proposed a final dividend of 10.1 cents per share taking the full year dividend for 2023 to 15.0 cents per share (2022: 14.5 cents).
The board also announced that it is considering launching a tender offer to purchase up to $100m of the company’s shares, with a decision to be made by the end of April so that approval can be sought at the forthcoming AGM. As a result of applicable US securities law requirements, the company served notice to terminate its current share buyback programme until either the board decides not to proceed with the tender offer or the tender offer completes.
Partners Ali Raissi-Dehkordy and Robert Hamilton Kelly commented:
“Despite a challenging external backdrop in 2023, we were pleased with our Partner-firms raising $23 billion of fee eligible assets, on track relative to both size and timing. Unsurprisingly, distributable earnings were lower in the year predominately reflecting lower transaction activity, and the slower realisation environment impacting Partner-firm Realised Performance Revenues. FRE were also down 5% compared to 2022 but we remain confident on the medium-term outlook for FRE growth supported by attractive organic fee-paying AuM growth with potential for future M&A and note an increase in accrued performance fees which underpins the medium-term outlook for PRE. Our portfolio of Partner-firms remains strong with the carrying value of our Partner-firms up around 6% while our high profitability margin and cash conversion supports our strategy for growth and continued capital return to shareholders.
“The company maintains its progressive dividend policy and the Board is considering launching a tender offer to purchase up to $100m of the Company’s shares, reflecting the strong operating cash flow and balance sheet. Our robust capital raising and dynamic approach to capital allocation underpins our ongoing confidence about our medium-term prospects for shareholders.”
PHLL : Steady as she goes for Petershill Partners