HICL profit up but shares fall

Calls by Infrastructure investor HICL for investors to have faith in its sector fell on deaf ears today, with its share price falling despite a rise in profits and dividend.

The firm reported a pre-tax profit on its investments of £30.7m in the six months to the end of September, up from £23.4m the year before.

Earnings per share came in at 5.0p, up from 4.9p in the same period of 2010.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

HICL pushed up its interim dividend per share slightly to 3.35p from 3.275p in 2010, which the firm said was in line with its target to achieve a 7p dividend per share by March 2013.

The company said the Government wanted to continue using private sector capital and expertise to deliver public infrastructure and that despite criticism by MPs and the media, it expected that current and future contracts to be honoured.

"The positive statements by the UK Government on the need for private sector investment in infrastructure underscore the importance of maintaining confidence in our sector," said chairman Graham Picken.

"There is a healthy pipeline of new investment opportunities, both single investments and portfolios, which are being evaluated," he said.

"Good progress is being made and the board is confident that further acquisitions will soon be announced."

HICL's shares fell over 3% in morning trading following the announcement.