2nd Dec 2024 09:31
(Alliance News) - International Public Partnerships Ltd on Monday said it "continued to perform well" since the half-year end as "demand for infrastructure investment remains strong".
The infrastructure investor confirmed its 2024 dividend target of 8.37 pence per share, which would represent growth of 3.0% from 8.13p it had paid for 2023.
Chair Mike Gerrard said: "INPP's portfolio has continued to perform well during the period, generating consistent financial returns whilst facilitating the delivery of essential public services. We continue to make progress with our initiatives to optimise the portfolio, address the discount to net asset value at which the company's shares currently trade, and deliver value to shareholders."
INPP's net asset value per share at the June 30 half-year end stood at 149.5p, down 3.7% from 155.2p a year ago.
Recent developments in bond markets, foreign exchange and inflation rates are expected to "have a modest negative impact" on its NAV. Inflation rates in the areas it operates in are "slightly below" forecasts. INPP said a stronger sterling will also have a "minor negative impact".
"Yields on the government bonds issued by the countries in which the company is invested are broadly in line with the levels seen at 30 June 2024 with the exception of the yields on UK government bonds which have increased slightly. In isolation, this would imply a modest negative impact on the valuation of UK investments, but it is worth noting that the discount rates that will be adopted as part of the 31 December 2024 valuation will be determined by taking into account other factors such as the positive performance of the investments and market-based evidence of pricing for infrastructure assets and businesses."
From next year, it will pay dividends on a quarterly basis, and not semi-annually.
Gerrard added: "The company has also continued to buyback shares under the previously announced share buyback programme of up to GBP60 million. We remain confident in the company's ability to navigate macroeconomic uncertainties, underpinned by the performance of its investment portfolio."
Looking ahead, INPP said "demand for infrastructure investment remains strong across the geographies in which the company invests".
"There is significant government appetite for private capital investment to support infrastructure policy, which creates attractive opportunity for INPP and its shareholders."
"The company is well-positioned for future growth," it added.
Shares in International Public Partnerships were 0.3% lower at 125.60p each in London on Monday morning.
By Jeremy Cutler, Alliance News reporter
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