HICL's annual profits rise on new investments

HICL Infrastructure Company reported a 50.1 per cent increase in annual pre-tax profit, bolstered by rising secondary market prices and contributions from new investments.

HICL Infrastructure Company reported a 50.1 per cent increase in annual pre-tax profit, bolstered by rising secondary market prices and contributions from new investments.

Profit before tax for the year ended March came to £93.1m, up from £62m the previous year. Earnings per share rose to 10.4p from 9.8p.

The British investment company focused on private finance initiatives said results were driven by new investments, value enhancements to existing investments and inflation exceeding the 2.75% per annum valuation assumption.

During the period the company acquired 21 investments with a combined value of £278m. Four more were acquired after March 31st for £36.1m.

Cash received from the portfolio by way of distributions, capital repayments and fees was £76.8m, compared to the prior year's £51.2m.

Valuation of the portfolio at the end of the period was £1.2bn, a 34% increase from £902m reported a year earlier.

The company was able to meet its long-term target of an annual distribution of 7.0p per share within the seven-year time horizon set at the initial public offering in March 2006.

Net cash inflows, after costs, of £64.3m adequately covered the distributions paid in the year.

Net asset value per share came to 120.0p at the end of the year, up from 116.3p in 2012, driven by increased pricing for secondary market assets, a strong operational performance of the portfolio and new, value-accretive investments.

HICL said it has a healthy pipeline of further attractive investment opportunities under consideration, including five on an exclusive basis worth over £100m.

Based on expectations for current year cashflows, the group is targeting a total dividend of 7.1p per share for fiscal year 2014.

"Given the underlying strong fundamentals of the current portfolio, coupled with the new investment pipeline, we expect the company to be able to provide shareholders with sustainable distributions alongside preservation of capital value," said Chairman, Graham Picken.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020