Hicl Infrastructure Share Discussion Threads

[asmodeus] 05/8/2013 08:54

I am a basic-rate taxpayer (unfortunately), and have had gross-paid dividends from offshore companies in my self-select ISA ever since the ISA's inception. If the dividends were paid to me outside the ISA, I would be liable to pay tax on them at 10% wouldn't I? vis:"But under self-assessment, you do need to declare your dividends in the foreign pages". But in the ISA, no such tax is, or ever has been, deducted from my dividends. So surely it is not true to say there is no difference whether divs. in or out of an ISA?

[jonwig] 05/8/2013 06:57

If you are a basic rate tax payer, it doesn't matter whether you hold them in an ISA or not.
The latest prospectus I have (C-share issue 2010) has, page 83:

Where an individual Shareholder who is resident or ordinarily resident in the UK, and if domiciled outside of the UK is not subject to the remittance basis of taxation, receives a dividend from the Company this is a foreign source dividend and will be subject to income tax at (generally) 10 per cent. if the individual is a basic rate taxpayer, 32.5 per cent. if the individual is a higher rate taxpayer or 42.5 per cent. if the individual is an additional rate taxpayer (i.e. if the individual has an annual taxable income in excess of £150,000). Such Shareholders will also be entitled to a non-payable dividend tax credit of one ninth of the amount or value of the distribution provided that they own less than a 10 per cent. holding in this Company. This will have the effect of eliminating the income tax liability on such dividend income for Shareholders who are liable to tax only at the basic rate of income tax,...

But under self-assessment, you do need to declare your dividends in the foreign pages.

There is, though, an exception here. If (like me) you're over 65, high income reduces your age-related tax allowance, so it pays to get as many as possible of your high-yielding investments into an ISA. I haven't yet managed to beat the system here, as the ISA limit isn't big enough to achieve my goal quickly.

[asmodeus] 04/8/2013 21:09

Yes - hence ideal for ISAs.

[killieboy] 04/8/2013 19:06

As a Guernsey based company does HICL pay dividends without deduction of UK tax?
Thanks.

[skinny] 29/7/2013 07:09

Highlights

Ten new investments acquired during the period, for a total consideration of £185.5m, bringing the total number of projects in the portfolio to 89

Long-standing relationships with key industry participants continue to provide a healthy pipeline of appropriately priced investment opportunities, in a secondary market where valuations have been seen to increase and where there has been upward pressure on prices during the period

The investment portfolio continues to perform well, and cash inflows from the investments are on track to deliver the targeted 7.1p per share dividend for the year ending 31 March 2014

66.7m new ordinary shares issued by way of tap issuance on 5 July raising proceeds of £86m to fund new investments made in the period

The second interim dividend of 3.575p per share was paid on 22 April 2013 and there was a 13.7% take up of the scrip dividend alternative

[jonwig] 03/7/2013 07:23

As expected, a tap issue to raise £86m on a non-pre-emptive basis. That looks like an issue of around 70m shares at a price between NAV and the current share price They are allowed to issue up to 10% of the 31/03 share capital on this basis, that's 112m shares, so I'd really expect existing shareholders to have a look in next time with a "placing and open offer".

Evidence from AGM notice:

The number of Ordinary Shares which may be so allotted
under such authority is limited to the
number of Ordinary Shares representing 10 per cent.
of the Ordinary Shares in issue as at the date
of the notice of the AGM (this equates to 112,025,211
Ordinary Shares). This will allow the
Company to continue to issue Ordinary Shares at
a premium to the prevailing net asset value per
Ordinary Share when there is sufficient demand for
the Company's Ordinary Shares, and thereby to
help to manage the share premium.

[skinny] 01/7/2013 07:08

Acquisition of four new investments

HICL Infrastructure Company Limited (the "Company", and together with its subsidiaries the "Group"), the leading listed infrastructure investment company, is pleased to announce that it has completed the acquisition of four new investments for a combined consideration of £107.9m.

These are: a 50% equity and loan note interest in the Salford Hospital PFI Project from Balfour Beatty Infrastructure Investments Limited, a subsidiary of Balfour Beatty plc; a 33.33% equity and loan note interest in the Miles Platting Social Housing PFI Project from a subsidiary of Morgan Sindall plc; a 75% equity and loan note interest in the Gloucester Fire & Rescue PFI Project from subsidiaries of Kier plc, Cardon Croft Limited and Capita plc ("Capita"); and a 12.5% equity and loan note interest in the Allenby & Connaught Ministry of Defence ("MoD") PFI Project from a subsidiary of Carillion plc ("Carillion").

• The Salford Hospital PFI Project is a 35 year concession, procured by the Salford Royal NHS Foundation Trust, to design, construct and commission new-build hospital facilities and associated site infrastructure in Salford, Greater Manchester. The project reached financial close in 2007 and construction of the new facilities, which was undertaken by Balfour Beatty Construction Limited, was completed in 2012. Balfour Beatty WorkPlace is providing hard facilities management ("FM") services to the project.

• The Miles Platting Social Housing PFI Project is a 30 year concession, procured by the City of Manchester Council, to redesign and refurbish approximately 1,500 occupied properties, as well as to build 20 new extra care homes and 11 new family homes in Miles Platting, Manchester. The project reached financial close in 2007 and construction, which was undertaken by Lovell Partnerships Limited (a Morgan Sindall subsidiary), was completed in 2012. Adactus Housing Association Limited is responsible for providing the on-going management and maintenance of the properties.

• The Gloucester Fire & Rescue PFI Project is a 26 year concession, procured by the Gloucester Fire Authority, to finance, design, construct and subsequently operate and maintain four community fire stations and a "SkillZone" in Gloucestershire. The project reached financial close in 2011 and construction of the new facilities, which was undertaken by Kier Construction Limited, was completed in 2012. Tascor Services Limited, a subsidiary of Capita, is providing FM services to the project.

• The Allenby & Connaught MoD PFI Project is a 35 year concession to design, build and finance new and refurbished MoD accommodation across four garrisons on Salisbury Plain, comprising working, leisure and living quarters as well as ancillary buildings. The Project reached financial close in April 2006 and construction is being undertaken by a joint venture between subsidiaries of Carillion and KBR Holdings LLC ("KBR"). Some limited works remain to be delivered over the next 12 months to complete the construction obligations of the project. A services joint venture between subsidiaries of Carillion and KBR is providing the FM services to the project.

The consideration paid by the Group for these investments is in line with the current valuations of similar UK social infrastructure projects in the Group's portfolio and brings the total number of investments in the Group's portfolio to 89. The acquisitions were funded from the Group's existing cash and debt resources.

[jonwig] 30/6/2013 08:35

Infra-Red Capital Partners (HICL's manager) are to launch a £300m Renewables Infrastructure Fund next month.
I've no idea whether there will be a retail offer - probably not.
No details as yet.

hxxp://ircp.com/

[skinny] 28/6/2013 14:22

I guess he/she meant that (at the time) it was sitting on the 50day ma.

[schofip] 28/6/2013 13:58

Hiddendepths - When you say a critical point on the charts can you explain your observations in a bit more detail. I am a relatively novice investor/chartist and not sure if your comments are positive or negative. Certainly these companies have no trouble raising funds and have a guaranteed income stream. After the government announcing huge infrastructure spending plans this week, I would expect a steady stream of opportunities in the future,

[jonwig] 27/6/2013 10:43

JLIF is tapping the market for £35m, so institutions might switch if they have full weighting in infrastructure funds.

Mind, I wouldn't know much about charts!

[hiddendepths] 27/6/2013 10:25

Looks to be at a critical chart point.

[madengland] 10/6/2013 16:05

Maybe......or the opposite could be the case

[jonwig] 02/6/2013 20:02

Possibly - but rising gilt yields are a danger, and will hit NAV (for purely technical reasons).

Whether that will be reflected in the share price, I don't pretend to know.

[madengland] 02/6/2013 14:35

Understandable sell off,looks a not bad entry point now IMHO

[skinny] 28/5/2013 07:12

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has acquired a 39% equity and loan note interest in the South West Hospital Enniskillen PFI Project (the "Project") from FCC Construcción SA ("FCC").

The Project is a 33 year concession to design, construct, finance and maintain a new acute hospital and key worker accommodation on a greenfield site at Enniskillen in Northern Ireland.

The new hospital was built by a joint-venture between FCC and P Elliott & Co Limited and was completed on schedule in May 2012. It covers an area of circa 71,500m2 and accommodates 312 single inpatient beds. The facilities include outpatient facilities, an Accident & Emergency unit, a new energy centre and key worker accommodation (providing 120 bed spaces in 45 units, office accommodation and a crèche).

Interserve FM Limited provides the hard facilities management services to the Project under a long-term services agreement.
The consideration is in line with the current valuations of similar UK PFI projects in the Group's portfolio and was funded from the Group's cash resources.

The Group has also completed the acquisition of the 50% equity and loan note interests in the University of Sheffield Project from InfraRed Infrastructure Fund II, identified in February 2013 as one of the two Conditional Investments described in the Company's New Ordinary Share Prospectus. This brings the total number of investments in the Group's portfolio to 85.

Erwan Fournis, Director, Infrastructure, at InfraRed Capital Partners Limited (HICL's Investment Adviser) said:

"We are pleased to have completed these acquisitions which were identified as part of the Group's pipeline of new investment opportunities at the time of the Company's recent successful equity capital raising, and were part of the pipeline referred to in the Company's recent results announcement. We look forward to working with our co-shareholders and public sector partners to continue the provision of quality services for these projects."

-ends-

[jonwig] 26/5/2013 06:39

Uh - non-premium posters can\'t use html functionality here any more. What will they be stopping next?

[jonwig] 26/5/2013 06:33

\"The country\'s first listed infrastructure fund, HICL, is understood to be mulling a tilt for a portfolio of socially driven projects.

The Investors in the Community (IIC) fund, which includes schools in Leeds and the regeneration of housing in Manchester\'s deprived Miles Platting district, is understood to have been put on the block for around £100m. KPMG is thought to be orchestrating a sale process for the fund\'s investors, such as the London Pension Fund Authority and Mill Group, the latter of which also manages IIC.

The fund, set up in 2004, has 11 investments but was only due to have a 10-year lifespan. The current investors in IIC are looking to cash in by agreeing to sell the portfolio by the end of the year in what is known as the secondary market of mature infrastructure assets.

The Government has been keen for these type of funds to invest in upcoming projects such as roads, bridges and sewage works to help kick-start the economy. However, these \'primary\' deals have been slow to materialise, so there are more opportunities in trading existing assets and portfolios.

HICL is currently considered one of the favourites to buy IIC.\"

http://www.independent.co.uk/news/business/news/pioneer-fund-hicls-sights-on-100m-buy-8632273.html

They placed 140m shares in March raising £270m and probably had this in their sights when announcing FY results on 22/05:

"Healthy pipeline of further attractive investment opportunities under consideration, including five on an exclusive basis worth over £100m."

[drewz] 22/5/2013 14:21

Premium to NAV was too high, hoping for better NAV and divi in results.

Logical to sell and buy back once it has come back to circa 125p.

[jonwig] 22/5/2013 14:20

James - possibly so: some sort of index-linking is the hope, but this isn't quite that hope!
On the other hand, holders have enjoyed share price rises for some time, and I for one would not sell on a price reversion to NAV, unless they issue negatives, of course.

[james93] 22/5/2013 13:42

Poor reaction to results. Disappointment with divi increase perhaps ?

[jonwig] 22/5/2013 07:24

The share price is now a premium of 14% to NAV, against 12% only 7 weeks ago (31/03).

The appetite is for a 6% yield based on a forecast dividend of 7.1p.

[skinny] 22/5/2013 07:16

Highlights

for the year ended 31 March 2013 (on an Investment basis unless noted otherwise1)

· Operational performance and cash generation remain strong

· Profit before tax of £93.1m, a 50.1% increase (2012: £62.0m)

· Second interim distribution of 3.575p for the year to 31 March 2013 declared and paid, with a scrip dividend alternative, giving total distributions of 7.00p per share for the year thus achieving the Company's target set at IPO.

· The Company is targeting a total distribution of 7.1p per share for the year ending 31 March 2014.

· Directors' Valuation of the portfolio at 31 March 2013 of £1,213.1m, up from £902.0m at 31 March 2012, a 34% increase

· NAV per Ordinary Share post distribution of 116.4p at 31 March 2013 compared to 112.8p at 31 March 2012, a 3.2% increase

· 21 value-accretive investments acquired, with a combined investment value of £278.0m

· Raised £272.6m (before expenses) through an issue of 140m New Ordinary Shares (£167.3m) in March 2013 and aggregate tap issues of 88.3m shares (£105.3m) during the year

· Four new investments acquired since 31 March 2013 for £36.1m

· Healthy pipeline of further attractive investment opportunities under consideration, including five on an exclusive basis worth over £100m

· Two new Directors recruited as part of the long-term succession plan, and to bolster depth and breadth of the Board




1 In order to provide shareholders with further information regarding the Group's net asset value, coupled with greater transparency in the Company's capacity for investment and ability to make distributions, as in previous periods, the results have been restated in pro-forma tables with all investments accounted for on an Investment basis.

[skinny] 08/5/2013 07:13

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has completed the acquisition of a 33.3% equity and loan note interest (the "Interest") in the HMP Addiewell Prison PFI Project (the "Project") from Royal Bank Project Investments Limited for £10.3m.

The Project is a £74m PFI scheme procured by the Scottish Prison Service to design, build, finance and operate a new maximum security prison at Addiewell, West Lothian, Scotland. The Project reached financial close in June 2006 with construction successfully completed on time at the end of 2008 and the prison officially open for use thereafter. The concession is for a total of 25 years from the end of construction.

[skinny] 01/5/2013 07:10

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has completed the acquisition of a 50% equity and loan note interest in the Tameside General Hospital PFI Project (the "Project") from Balfour Beatty Infrastructure Investments Limited, a subsidiary of Balfour Beatty plc ("Balfour Beatty"), for £16.0m.

The Project is a £78m PFI scheme procured by the Tameside Hospital NHS Foundation Trust to design, construct and commission new-build facilities and associated site infrastructure. The Project reached financial close in September 2007 and is for a term of c. 34 years. Construction of the new facilities was completed on time and on budget by Balfour Beatty.

The works entailed the construction of a new energy center; a new elderly mental and infirm unit; a new Diagnostics and Treatment Centre (DTC); an elevated link bridge between the new DTC and an existing hospital building; a new surface car park; and service infrastructure works. Balfour Beatty WorkPlace is providing hard facilities management services to the Project.

The consideration paid by the Group is in line with the current valuations of similar UK PFI projects in the Group's portfolio and brings the total number of infrastructure investments in the portfolio to 82. The acquisition was funded from the Group's existing cash resources.