 Key Highlights
. Operational performance across the portfolio in the period was in line with expectations, demonstrating the resilient nature of the underlying assets.
· The Company is on track to deliver its target dividend of 8.25p per share for the financial year to 31 March 2025, with increased cash generation in line with expectations.
· The Revolving Credit Facility ("RCF") was repaid in May 2024 and the Company commenced a £50m buyback programme.
· Ofwat's PR241 draft determination received for Affinity Water, reflecting some positive movements as well as some gaps between the determination and Affinity's submitted business plan, as would be expected at this stage. The draft determination aligns with HICL's expectation for Affinity to resume equity distributions in AMP 8.
· Highly disciplined capital allocation approach, including the exploration of further strategic asset disposals and highly selective acquisitions where these are accretive and enhance the key portfolio metrics.
1. The Ofwat 2024 price review process that sets prices for the period from April 2025 to March 2030. |
HICL Infrastructure PLC (the "Company") is pleased to announce the first interim dividend for the financial year ending 31 March 2025 of 2.06 pence per ordinary share (the "Q1 Dividend").
The shares will go ex-dividend on 25 July 2024 and the Q1 Dividend will be paid on 30 September 2024 to shareholders on the register as at the close of business on 26 July 2024. a portion of the Company's dividends will be designated as an interest distribution for UK tax purposes. The interest streaming percentage for the Q1 Dividend is 87%. |
You can paste the link into if anyone without a subscription is desperate to read the article, though riverman's summary is accurate.
I'd paste the full link, but the link gets garbled on here and can't be "fixed" purely by changing the lower case HTTPS to non-lower case |
Doesn't say anything insightful - basically says that infrastructure funds could do well when rates falls and lists a few others he has his eye on - UKW INPP 3IN |
Times uses a paywall |
BUY in The Telegraoh (Questor) |
Corbyn shied away from blowing up PPPs Stammer isn't going to; not least as he needs investors for renewables |
Unlikely to be significant impact except for potential changes in tax rates. Bear in mind a lot of the PPPs were put in place under the previous labour government. |
Any thoughts on how a labour government will impact the ppp assets |
I've added a few more. 9% implied market return is very attractive in my view given the lower risk. I'm moving alternatives from 10% to a 15% weighting over time. |
2% of market cap. Statistically irrelevant |
It's more symbolic in size but still accretive by virtue of the NAV discount |
50m buyback, they're a 2.5bn company, bit pointless really |
Fair enough but £50m over 12 months should have been in the buyback announcement. And it won’t touch the sides in any case… |
And the buyback starts today. If my memory serves me correctly the stock also goes ex-dividend tomorrow. |
It's in the results release and inline with what they said previously at 50 million pounds! |
Results in line. Totally useless buy back announcement. Do they not realise that for these things to work, they need to be specific in terms of amount and timing - see Pantheon International last year… |
Falling inflation weighs on ‘excellent’ value HICL Infrastructure -
The inflation-linked income fund reports a small fall in net asset value, prompting analysts to debate how good value shares in the 6.8% yielder are on a 21% discount... |
The Company's Annual Results are scheduled for release on 22 May 2024.
The Board expects to announce a decrease in the Company's unaudited Net Asset Value ("NAV") per share of approximately 1.2 pence to 158.2 pence as at 31 March 2024 (30 September 2023: 159.4 pence). This statement explains the Company's approach to determining the NAV as at 31 March 2024.
The expected NAV decrease is mainly driven by the following macroeconomic factors:
· Actual inflation for the year to March 2024 being lower than the assumptions used in the portfolio valuation as at 30 September 2023;
· A reduction in UK inflation assumptions for FY2025 and FY2026, aligning with market consensus;
· A reduction in deposit rate assumptions for all jurisdictions except the USA, aligning with market consensus; and
· Adverse foreign exchange movements as sterling strengthened in the period, net of hedging.
Operational performance of the portfolio was broadly in line with expectations. During the second half of its financial year, the Company disposed of its remaining interest in the Northwest Parkway toll road project in the USA. The proceeds received represented a premium to the Company's September 2023 valuation of 30% / 2.1 pence. The acquisition of a 3.1% incremental interest in the A63 Motorway concession generated 0.7 pence as it was revalued to HICL's existing holding. These two items partially offset the reduction caused by the macroeconomic factors outlined above. |
Yep I dumped a considerable amount into BBGI close to the all time high, and while I'm sitting on a large £ amount of capital loss by income has grown considerably It's part of the forever portfolio so really all that matters is the income |
Thanks for that. The forward yield for BBGI is significantly more than I expected given that it paid out 7.93p in total for over the past 12 months. Agree in general and INPP is my highest weighted holding in the entire portfolio and HICL my lowest of the 3. |
And on forward divi yield I'm at INPP - 6.91%HICL - 6.63% BBGI - 6.53% Interesting that BBGI doesn't yield much less than HICL So not sacrificing much in way of short/medium term income If/when HICL are able to get their water company paying dividends it's likely they'll restart growing their divi |
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