21st Nov 2018 10:05
LONDON (Alliance News) - HICL Infrastructure Co Ltd on Wednesday reported a "strong" interim performance, with its total return rising sharply.
For the six months to September, HICL's total return was 15%, compared to 8.9% the year prior.
The investor's net asset value per share as at September 30 was 156.4 pence, up 4.5% from 149.6p a year before.
HICL also provided long-term dividend guidance. For its year ending March 2021, HICL expects a dividend of 8.45p per share, on the back of "robust" cash flow forecasts.
This compares to reaffirmed targets of 8.05p for its current year and 8.25p for its year ending March 2020.
HICL's income rose to GBP211.0 million from GBP108.1 million, with pretax profit soaring to GBP192.8 million from GBP87.8 million.
Chairman Ian Russell said: "I am pleased that the company has delivered further strong performance in the period, and a total return since IPO in 2006 of 9.5% per annum.
"Political uncertainty is currently heightened in the UK and remains a key risk faced by the company," he continued.
"However, InfraRed's proactive and professional approach to managing HICL's portfolio demonstrates the benefits responsible private investors bring to infrastructure stewardship. The value of private sector expertise, risk-taking and resources is all too often disregarded in the political debate on nationalisation and by regulators."
HICL Infrastructure, in a separate announcement, said Wednesday it has decided to move its domicile and tax residency to the UK from Guernsey, through the set-up of a new UK company.
A shareholder vote will be required and be held on an undecided date during the first quarter of 2019. It hopes to complete to move on March 31 next year, or shortly after.
Shares were 1.1% higher on Wednesday morning a 161.22 pence each.
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