9th Sep 2021 10:37
(Alliance News) - International Public Partnerships Ltd on Thursday maintained plans to increase its dividend despite a drop in net asset value per share and profit in the first half of 2021.
The public infrastructure projects and businesses investor said its net asset value was 145.1 pence on June 30, down 1.4% from 147.1p at the end of 2020.
The FTSE 250-listed company's net asset value was 2.7% below the 149.2p reported at the same point in 2020 and down 3.7% from 150.6p at the end of 2019.
"During the period, the portfolio experienced limited further disruption from the pandemic. However the company has maintained its precautionary approach to the valuation of certain specific risks in the portfolio," International PPL noted.
Pretax profit fell 23% to GBP27.2 million in the six months ended June 30, from GBP35.4 million a year prior. In comparison, the company reported pretax profit of GBP85.2 million in the first half of 2019.
Despite lower profit, International IPP stuck to its dividend targets, declaring an interim payout of 3.78p, up 2.7% from 3.68p a year earlier. The investor also reaffirmed its dividend targets of 7.55p and 7.74p for 2021 and 2022 respectively.
"The targeted payments would represent a 2.5% increase on the preceding distributions and would continue to be in line with the growth target indicated at the time of [International PPL's] IPO in 2006," International PPL added.
The company noted investments totalling GBP22.3 million in the first half, including a further GBP14.2 million committed to UK-based full fibre broadband provider toob and a payment of GBP8.1 million for a 45% stake in a new police headquarters in Offenbach, Germany.
After the period end, International PPL invested GBP49.8 million in the Beatrice offshore transmission owner project.
"The company has identified an attractive near-term pipeline of investments in the social infrastructure, regulated utilities, transport and other essential infrastructure sectors," the investor said.
"We remain confident in the ability of our Investment Adviser to continue to source and develop high-quality projects which can deliver long-term, predictable cash flows for shareholders, and strong inflation-linkage to meet the company's risk-return profile," it added.
Shares in International Public Partnerships were trading down 0.4% at 171.65p each in London on Thursday morning.
By Scarlett Butler; [email protected]
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