10th Feb 2014 10:06
LONDON (Alliance News) - HICL Infrastructure Company Ltd on Monday said its investment portfolio performed well between October 1, 2013 and February 7, while its cash inflows from investments for the year to March 31 are in line with expectations.
HICL Infrastructure Company, which was established to be a long-term investor in public infrastructure, said its cash inflows from investments are on track to deliver the targeted 7.1 pence per share dividend for the full year.
During the period, the firm invested in a number of projects including a total of GBP23.5 million for a 26% stake in the Royal School of Military Engineering and a 40% stake in the Sheffield BSF Schools project.
The company also acquired a 29.1% stake in Falkirk NFP Schools project and a 50% stake in Brighton Hospital for GBP9.2 million.
HICL now owns a portfolio of 93 infrastructure investments, all of which are social and transportation infrastructure concessions. The investments are mainly located in the UK, with two in Canada, two in France, two in Ireland and one in Holland.
The firm said a number of factors are likely to impact positively on its net asset value per share for the full year.
The imbalance in the UK between supply and demand for infrastructure projects may lead to a reduction in the weighted average discount rate used to value the group's portfolio, while the reduction in UK corporation tax rates to 21% from 23% in April also will have a positive impact on valuation, it said.
However HICL warned that short-term deposit rates look set to continue at current levels for longer than expected, and inflation is currently close to its assumed long-term level of 2.75% a year. This means that the positive contribution to value from inflation will be less than in recent reporting periods, the firm said.
Looking ahead, HICL said any acquisition made in the near term will be funded from its debt facility and residual tap capacity.
The stock was trading at 133.65 pence Monday morning, up 0.05 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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