HICL Infrastructure Plc - Interim Results
HICL Infrastructure PLC
20 November 2019
The entire investment business of HICL Infrastructure PLC (the "Company") was transferred from HICL Infrastructure Company Limited ("HICL Guernsey") to the Company on 1 April 2019, by way of a scheme of arrangement as detailed in the Prospectus dated 4 March 2019. To enable an improved assessment of the Company's investment business comparative data in Section 1 (for the six months to 30 September 2018, and as at 31 March 2019) relates to HICL Guernsey, being the owner of HICL's investment business until 1 April 2019. All financial information from 1 April 2019 relates to the Company. Financial information in Section 2 represents the half year financial statements of HICL Infrastructure PLC, prepared in accordance with IFRS, and therefore incorporates the comparatives of the Company only. Throughout "HICL" means HICL Infrastructure Company Limited up to and including 31 March 2019 and HICL Infrastructure PLC from 1 April 2019.
The Board of HICL Infrastructure PLC announces Interim Results for the six months ended 30 September 2019.
For the six months ended 30 September 2019
- Resilient portfolio performance underpinning continued growth in Net Asset Value of 0.3p per share to 157.8p for the six months to 30 September 2019.
- The Company is on target to deliver aggregate target dividends of 8.25p per share for the current financial year1 and the Board re-affirms the 8.45p per share target dividend guidance for the next financial year, ending 31 March 20211.
- New target dividend guidance is given for the financial year ending 31 March 2022 of 8.65p per share1, reflecting the Board's confidence in the resilience of the long-term forecast cash flows from HICL's portfolio.
- Portfolio optimisation remains a core focus, with two accretive investments and two strategic disposals delivering improvements in the Company's key portfolio metrics.
- With a total return featuring strong inflation correlation, low sensitivity to deposit rate changes and a low correlation to UK GDP, HICL's portfolio provides a measure of mitigation against ongoing political uncertainty in the UK.
- The infrastructure asset class continues to hold unique attractions for yield investors in a low interest rate environment; and HICL has market-leading, differentiated characteristics such as low single asset concentration, a well-diversified portfolio and a pipeline of opportunities for growth.
- Steady share price progression over the period has seen the Company's shares move to a healthy premium to Net Asset Value reflecting renewed appetite for yield as a low interest rate environment persists; the increasing relevance of investments such as HICL that have a meaningful sustainability profile; and a more supportive political backdrop in the UK.
- The Investment Manager continues to progress a healthy pipeline of core infrastructure opportunities including PPPs in Northern Europe and North America and regulated assets in selected geographies, including additional OFTOs.