NAV stable at Intl Public Partnerships

published 16 May 2012

International Public Partnerships (INPP) said its portfolio of public infrastructure investments projects continues to perform in line with expectations in 2012.

After weighing up a number of counter-balancing factors, such as currency fluctuations, the decline in risk free interest rates and the general state of the market, the board reckons that net asset value (NAV) per share is likely to have remained on or around the 116.9p level at which it finished 2011, after allowing for distributions declared.

The company had around £38m of cash available for the payment of distributions and working capital as at May 15th, on top of which it has about £81.9m of net capacity within its corporate debt facility.

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The group said the market for infrastructure investment is "strong but evolving", with fewer UK private finance initiative (PFI) projects being developed in the UK, due to the government's attempts to rein back spending. On the plus side, other parts of the world are more than picking up the slack.

The UK market is far from dormant, and there are also a number of opportunities in Australia and Europe, focused on education, transportation and health sectors which the company's investment advisor is actively pursuing.

"Overall, we continue to remain positive about the prospects for the company, both in terms of the performance of its existing assets and the opportunity to add high quality assets to the portfolio during the remainder of 2012," the group's interim management statement concluded.

The shares were down 0.3p to 117.7p in early morning trading.