3rd Jun 2021 12:18
(Alliance News) - International Public Partnerships Ltd on Thursday said there had been "no material changes" to its operations or performance since its full year results were released in March.
The London-based infrastructure investment company said as at December 31, 2020 net asset value per share sat at 147.1 pence, down 2.3% from 150.6 pence at the end of 2019.
IPP also estimated that the UK government's plan to increase corporation tax to 25% from April 2023 will have a GBP30 million negative effect on its net asset value. The company expects that this change will be reflected in its valuations released later in June.
On Friday, IPP will pay its second half-year dividend of 3.68 pence per share as announced in March. The company said that the dividend is about 2.5% higher than the equivalent period the previous year, reaching its own internal targets for dividend rises.
The company aims to continue to increase dividends by around 2.5% annually, with plans to provide full-year dividends of 7.55 pence in 2021 and 7.74 pence in 2022.
IPP's portfolio contains stakes in 130 projects, primarily in the energy, transport and education sectors. The company provided a June update on projects including: the Tideway "super-sewer" in London; the Diabolo rail upgrade in Belgium; and, its largest single asset, a UK-based gas distribution network that serves 11 million customers.
The Tideway 'super sewer' is 65% complete. Formal measures drawn from a public consultation by the water services regulation authority, Ofwat, are due to be applied to mitigate the financial impact of the pandemic on shareholders.
Revenue from customer use of the Diabolo rail project meanwhile has been dampened by travel restrictions and national lockdowns. The company invested GBP9.1 million in December 2020 and plans to commit a further GBP12.6 million to the project to ensure all debts continue to be met. IPP will continue to monitor passenger numbers in order to plan the size and timing of any further investments.
IPP awaits the outcome of "an independent review by the Competition and Markets Authority" of its UK-based gas distribution network, which is due later this year.
The investment company noted that at the half-year point it has used GBP60 million of its available credit facility of GBP250 million, leaving GBP190 million available to meet the company's current commitments.
Although the global pandemic has had a relatively limited impact on the company, IPP said that it is concentrating on insulating the company "against future threats", such as monitoring higher risk projects including the Tideway sewer project and the Diabolo rail link.
With regard to outlook, the company said: "While the full consequences of the pandemic and its long-term effects, both economic and social, remain unclear, the company believes its business model and investment objectives continue to offer a significant degree of protection for investors and there is sustained appetite for long-term responsible investment into public and social infrastructure across the geographies that the company invests in."
IPP's shares were trading down 0.6% at 171.80 pence each in London on Thursday.
By Scarlett Butler; [email protected]
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