HICL Infrastructure Company Limited – Annual Results for Year to 31 March 2016

4 April 2019 Corporate
The Directors of HICL Infrastructure Company Limited announce the results for the year ended 31 March 2016.


·      Solid portfolio performance in line with projections

·      NAV per share as at 31 March 2016 of 142.2p, up 4.0% (5.5p) from 136.7p as at 31 March 2015

·      Total shareholder return of 9.6% over the year (on a NAV per share basis)

·      Four quarterly interim dividends declared for the year totalling 7.45p per share

·      Revised target dividend per share of 7.65p for the year to March 2017 – a year on year increase of 2.7%

·      New guidance on a target dividend per share of 7.85p for the year to March 2018

·      Profit before tax of £157.4m (2015: £231.0m which benefited from certain one-off revaluations and a large disposal)

·      Directors’ valuation of the portfolio of £2,030.3m1, up from £1,732.2m1 at 31 March 2015, with the weighted average discount rate reduced from 7.9% to 7.5%

·      Net investment of £231.2m during the year, comprising three new investments, one conditional investment and six incremental acquisitions for £240.1m and two disposals for net consideration of £8.9m

·      Successful capital raising of £178.2m and a refinancing of the Revolving Credit Facility

1 Includes £97.4m of future investment obligations (2015: £22.5m)

Ian Russell, Chairman of the Board, said:

“Overall the Company’s performance in the year was ahead of plan, with investment cash flows received in line with expectations, despite low inflation during the year.  The portfolio’s valuation has again benefited from increased market valuations of infrastructure investments.

The Group made three new investments, one conditional investment and six incremental acquisitions in the year, investing £242.1m.  The investments were funded by value accretive tap issues in July 2015, December 2015 and March 2016, and the Group’s newly refinanced revolving credit facility.

The Board remains confident of acquiring further attractive investments for the portfolio in spite of continued competition for infrastructure investments.  Our disciplined pricing coupled with thorough due diligence is key to delivering our strategy and I am pleased to report that the Investment Adviser continues to deliver on both fronts.

In light of our continued confidence in the Company’s portfolio, the Board has increased the target dividend for the year to 31 March 2017 to 7.65p per share, and given new guidance on a target dividend of 7.85p per share for the year to 31 March 2018.”

Tony Roper, Director at InfraRed Capital Partners Limited (the Company’s Investment Adviser), said:

“Notwithstanding the competitive environment, we are pleased with investment activity during the year.

In line with the Company’s Acquisition Strategy, we continue to seek suitable investment opportunities in the UK, but also in certain countries in Europe, North America, Australia and New Zealand.  Overall the UK continues to be the key focus and will continue to form the bedrock of the portfolio but, as in the past, the geographic mix of the portfolio will continue to evolve as new opportunities in other jurisdictions are identified.

While PPP secondary markets are the principal focus for the Company, we are also sourcing primary opportunities, including projects that are at the bid or development stage.

We continue to evaluate new opportunities in market segments that complement the Group’s existing portfolio, with the important caveat that they must offer an attractive risk-adjusted return and fit the risk appetite of the Company.  The conditional purchase of a toll road in France is an example of this; the project offers a number of attractive features including robust traffic history, long concession duration and good inflation-linkage.

The portfolio has performed as expected during the year, and our dedicated team of asset and portfolio managers continues to pursue value enhancement initiatives for the benefit of shareholders and cost saving exercises for our public sector clients alike.”

The full announcement can be found at

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