Hicl Infrastructure Share Discussion Threads

[spangle93] 16/6/2014 07:20

Interesting method - kind of an auction:

The New Ordinary Shares are not being offered at a fixed price. To bid in the bookbuild, investors should communicate their bid (or bids) by telephone to their usual sales contact at Canaccord Genuity. Each bid should state the number of New Ordinary Shares for which the prospective investor wishes to subscribe and the price or price range that the prospective investor is offering to pay; any bid price must be for a full pence or half pence amount. No more than 37,039,192 New Ordinary Shares will be issued in aggregate. The Strike Price will be in excess of the Company's prevailing net asset value per Ordinary Share.


The thing I can't see is what they need £50MM for.
The net proceeds of the Issue will be applied in addressing the Company's net funding requirement of around £50 million
But for what? Did I miss something?

[david77] 05/6/2014 12:02

Unless you have a lot of shares, I don't think that the scrip divi option is a good idea. If your divi is £25, for example, the £2.50 commission is 10% whereas if you are buying £1000 of shares with a £10 commission, then it is only 1%.

I prefer to save divis and add cash as I can and buy whatever seems to be flavour of the month at that time.

Other problems - if you sell and then get your scrip shares, you may not be able to do much with them if they aren't worth much - my wife has 2 HICL shares bt after she sold the rest - and no matter how many times you tell the registrars to stop the scrip divi, they send you cash once then go back to buying shares.

[schofip] 03/6/2014 20:23

Do any of you have a problem getting scrip dividends through your broker? I am with Selftrade and youinvest and neither of them support receiving scips. Maybe there is another broker I should be with.

[hiddendepths] 29/5/2014 07:28

spangle - did you get the Email?

[hiddendepths] 28/5/2014 09:59

Whoops - just looked in after a while of not doing so. I'll be in touch imminently spangle!

I am aware that this stock more or less qualifies as an investment trust and so the NAV will act as a limiting factor to the share price. When I was talking about a break-out, I only meant that it's nice for it to make new highs over time as hopefully the NAV continues to rise despite the dividend payments.

I'm not too worried about the diversification overseas. In fact, I welcome it as long as they set a higher target return to compensate for somewhat higher risk (eg currency). I suspect the UK is leading the way with PFI-type initiatives both in terms of what's on offer and competition to get it. Margins in countries where such deals are less commonplace should generally be better until local competitors get their act together and work out what these deals are worth and how they can efficiently handle them. Useful as the UK market matures!

[skinny] 28/5/2014 07:52

It is a worry - I have held for 3+ years and quite like the way that they have largely been worry free!

[jonwig] 28/5/2014 07:44

The ceiling on their revolving credit facility is £150m, and since that's a fairly small investment, they could run up to their limit if (as they say) they look abroad.

They can issue up to 10% of their share capital on a non-pre-emptive basis - say 120m @ 137p, or £164m.

If they really do make a significant push abroad, I'd wonder whether they were getting too unwieldy - and are the safeguards on overseas PFI-type projects as reliable as UK ones?

[skinny] 28/5/2014 07:02

HICL Infrastructure Company Limited (the "Company"), the listed infrastructure investment company, is pleased to confirm that two previously announced investments have now been completed and form part of the Group's portfolio.

In the Company's Prospectus of February 2013, one of the Conditional Investments was the proposed acquisition of a 29.2% equity & loan note interest in the Bradford Schools BSF (Phase I) project. The project is a 27 year concession for the design, construction, financing and operation of three new secondary schools (Buttershaw High School, Salt Grammar School and Tong School), along with routine and major lifecycle maintenance for the life of the concession. The client is the City of Bradford Metropolitan District Council. This transaction, together with the investment in the PPP desalination project in Australia, have now successfully been completed, and the Group's portfolio now comprises 96 investments

As a result of recent investment activity funded from the Group's revolving debt facility, the Company has a current net funding requirement of around £50m.

[wirralowl] 21/5/2014 14:16

Excellent results today, the Management really do seem to be doing a fine job here.

[unastubbs] 21/5/2014 09:23

thankyou Skinny

[skinny] 21/5/2014 09:13

Yes - 3.60p ex today.

[unastubbs] 21/5/2014 09:09

Hi - is the fall today the share going ex-div? or negative reaction to the results? I notice a dividend was already declared on 13 May, payable "to shareholders on the register as at the close of business on 23 May" - today is 21 May...presumably that refers to the record date and today is ex-div.

[skinny] 21/5/2014 07:14

Highlights

· Second interim dividend of 3.60 pence per share declared, achieving target of 7.1 pence per share for the year, with good cash cover of 1.51 times.

· Strong operational and cashflow performance from the Group's portfolio, benefiting from active management and accretive acquisitions made over the last two years.

· Profit before tax of £153.8m (2013 restated: £93.1m)1.

· Directors' valuation of the portfolio of £1,500.6m2, up from £1,213.1m at 31 March 2013 and £1,437.6m at 30 September 2013, with the weighted average discount rate reducing from 8.4% to 8.2% over the year.

· Net asset value per share (post distribution) of 123.1p, a 6.7p increase from 116.4p as at 31 March 2013 and up 3.5p from 119.6p as at 30 September 2013.

· 11.9% total return for the year (based on dividends and NAV) and 9.1% p.a. since IPO.

· Net investment of £230.0m during the year, comprising 16 new investments, six incremental acquisitions and two disposals - funded from equity raised including £109.0m by way of tap issues.

· Group revolving credit facility with four lenders renewed and extended to £150m.

· Agreement with Investment Adviser on revised fees to benefit the Group and shareholders

· Demand for UK infrastructure investments currently outstripping supply, impacting prices.

· Pipeline of new investment opportunities being evaluated both in the UK and overseas, with success dependant on price competition.

[micos] 13/5/2014 19:32

Spangles,

Put that whisky glass down!!!

[spangle93] 13/5/2014 16:57

I'd stopped watching you at that time, micos, cos you usually leave your keyboard for lunch around then.... oops

[micos] 13/5/2014 16:54

Hi Jonwig,

Yes,I got the RNS as well. I'm even more paranoid now (not) about someone watching what I type.

[jonwig] 13/5/2014 16:32

Actually micos you posted at 13:12 and the RNS I quoted was issued at 13:51!

So it's not your fault for missing anything!!

[skinny] 13/5/2014 14:26

Edited - beaten to it!

But here is the link you want to bookmark it

[jonwig] 13/5/2014 14:19

@ micos -

HICL Infrastructure Company Limited (the "Company") is pleased to announce a second interim dividend of 3.60 pence per ordinary share for the financial year ending 31 March 2014 (the "Dividend"). The Dividend will be paid on 30 June 2014 to shareholders on the register as at the close of business on 23 May 2014.



They don't pay 'final' divis, only interims.
And I never read ADVFN Financials - always go to the company's own announcements, or website.

@ david77 et al - I think you need to cancel any reinvestment mandate before the ex-date.
Even then, it can cause problems - one of my brokers (TDD) missed a reinvestment (DRIP) and told me the stock was ineligible, as not in the FTSE350 (!!)

[micos] 13/5/2014 13:12

According to the financials, no final dividend date ha been set. Am I missing something?

[david77] 13/5/2014 12:56

"Automatic dividend reinvesting is boosting my shareholding nicely."

That's ok as long as your divi is large compared with the £2.50 cost. If your divi is only £25, then the cost is 10% which is far more than you would pay your broker if you collect divis from all companies and then buy whatever seems a good buy at the time.

And if you sell your shares just after a divi announcement, you can finish up with 2 shares as my wife has instead of a divi and those 2 shares will cost more to sell than they are worth.

[spangle93] 13/5/2014 10:57

Hi Hiddendepths - was thinking about you yesterday as I looked at an old Roxi analyst note (that's the note that's old, not the analyst, just to be clear). Are you still in there - BNG deep nearly there? What about LGO?

If I put all money in oil shares, I'd be a bit skint by now. :-( That's only a minority of porty, and as much for interest as gain (though I don't like so many in the red). I try to put some into (hopefully) steadier growth/income areas like infrastructure. So a bit here, some in JLIF, some in DIGS and a couple of UTs

Not sure about breakout here - it can't get too far ahead of NAV - but it's in a happy place :-)

Any others "sleep-at-nights" you could name that I should be researching?

Ref oil - might be a bit small for you but I think EDG looks undervalued

If you've time to drop an email to the same address as you had, would be good to hear from you

[skinny] 13/5/2014 10:39

From the February IMS :-

Outlook

As the Group's portfolio of investments is performing as expected the Board remains confident that the target dividend per share of 7.1p for this financial year will be achieved, and that the guidance for the subsequent financial year to 31 March 2015 of 7.25p per share remains appropriate.

[hiddendepths] 13/5/2014 10:11

spangle! I didn't know you were into this.

It's threatening to break out again. It's amazing how few people even know about this company. It's loved by many fund managers though. What not to like? Automatic dividend reinvesting is boosting my shareholding nicely.

Definitely a sleep-at-night share.