HICL Interim Results for the 6 Months ended 30 September 2013
For the 6 months ended 30 September 2013 (on an Investment basis unless noted otherwise1)
Value of the Group’s investment portfolio as at 30 September 2013 was £1,437.6m, up 18.5% from £1,213.1m at 31 March 2013
Profit before tax of £71.4m (2012: £42.2m), up 69% period-on-period, driven by portfolio performance, acquisitions made and growth in valuation
Net asset value per share (post-interim dividend) of 119.6p, up 3.2p from 116.4p at 31 March 2013
Interim Dividend of 3.5p per share has been declared (2012: 3.425p), payable in December 2013, with a scrip dividend alternative
Confident of achieving the 7.1p dividend target for the year to 31 March 2014 and guidance for the subsequent financial year to 31 March 2015 of 7.25p per share
Total shareholder return of 5.8% in the six month period
Proceeds from the £167.3m Ordinary Share issue in March and tap issue of £86m in July fully invested
Ten new investments and three incremental stakes acquired during the period for £197.7m
Two additional acquisitions made since the period end at a combined cost of £9.2m
The Group’s portfolio of investments is performing to plan with cash receipts from underlying projects as expected
All projects, with the exception of one acquired during the period, are fully operational
The pipeline of potential new investment opportunities under evaluation remains promising, with several at an advanced stage of negotiation
Investment basis Consolidated IFRS basis
Graham Picken, Chairman of the Board, said:
"The six months to 30 September 2013 have witnessed further good results for the Company characterised by sound underlying performance coupled with growth in the net asset value per share.
The Board has declared an interim dividend of 3.5p and confidently expects to achieve the target total distribution of 7.1p per share for the year ending 31 March 2014. With the portfolio performing well and attractive acquisitions having been made in the period, the Board believes that the Company’s future cashflows support a target full-year dividend for the financial year to 31 March 2015 of 7.25p per share.
All of the proceeds of the Ordinary Share issue in March were invested ahead of plan, the Group’s debt facility was utilised for acquisitions in June, and an oversubscribed equity tap issue in July raised £86m to repay drawings under the these facilities.
With a market capitalisation now exceeding £1.5bn, a net yield to investors of 5.3% and good share liquidity, the Company is attractive to a wide range of investors."
Tony Roper, Director, InfraRed Capital Partners Limited, the Investment Adviser added:
"Despite keen competition when sourcing new infrastructure investments, there has been a steady flow of new opportunities and the team has succeeded in securing accretive acquisitions from a broad spectrum of vendors.
Of the 13 investments made in the period, ten were new investments with stakes ranging from 12.5% to 75.0%. These may offer follow-on investment opportunities in due course, should co-shareholders choose to sell.
With two further acquisitions completed since the period end, the Company has a current net funding requirement of £9.6m.
Asset management of the Group’s investments remains a high priority, as do our relationships with clients and sub-contractors. Our commitment to actively managing the project companies in which we invest is crucial to preserving and enhancing the value of the Group’s portfolio.
The pipeline of new investment opportunities which fit the Group’s investment strategy remains promising and currently encompasses opportunities in the U.K., Ireland, France and Australia."