26th Mar 2015 08:35
LONDON (Alliance News) - International Public Partnerships Ltd, which invests in public infrastructure projects, Thursday reported a 27% jump in pretax profit in 2014 as higher investment income and lower expenses more than offset increased finance costs.
In a statement, International Public Partnerships said it made a GBP71.2 million pretax profit in 2014, compared with GBP56.1 million in the prior year. Investment income, which the company refers to as its returns from portfolio investments, increased to GBP90.1 million from GBP77.2 million, including fair value movements, dividends received and interest. Expenses fell to GBP15.7 million from GBP23.9 million, but finance costs rose to GBP2.7 million from GBP1.4 million.
The company said that net asset value increased to GBP1.062 billion at the end of 2014 from GBP935.4 million at the end of 2013, representing an increase of 3.3% of NAV per share, which moved to 127.0 pence per share from 123.0 pence per share.
International Public Partnerships increased its dividend for the year to 6.30 pence per share from 6.15 pence per share.
Chairman Rupert Dorey said that the company's performance in the first few months of 2015 has shown promise.
"We continue to have a high degree of confidence in the existing portfolio's ability to generate increasing returns for investors in line with published expectations. We are also encouraged by the number of new opportunities which we see," Dorey said.
"While there is undoubtedly increased competition for the types of assets in which the company invests, we remain confident in the ability of the company and its investment adviser to continue to identify and execute new investments in core markets to strengthen the company's portfolio further," Dorey said.
"Where new investment opportunities do arise we will continue to be selective in those acquisitions which we bring into the portfolio to ensure that they bring long-term value to shareholders," he added.
Separately, International Public Partnerships said it has reached financial close on its third privately financed batch of five batches of schools being delivered through a centrally managed government scheme known as the Priority Schools Building Programme.
A funding vehicle is being established to finance the project, with the third tranche of funding to help develop five secondary schools and seven primary schools in the North West of England. Total capital expenditure will amount to GBP123 million.
The funding vehicle will provide GBP111 million of the cost, with International Public Partnerships to fund about GBP8.4 million of that amount. The European Investment Bank and Aviva Investors, part of Aviva PLC, will pay the remainder, according to the company.
The project's sponsors, which include Morgan Sindall Investment Ltd, Equitix Ltd and HM Treasury, will provide equity and subordinated debt, the company said.
International Public Partnerships said it will use its corporate debt facility to fund the investment. It expects to provide a further amount of up to GBP50 million in funding to the remaining two batches.
"Through the programme, 260 schools will be rebuilt or have their condition needs met by the Education Funding Agency. As part of the programme, 46 schools in five batches with a value of circa GBP700 million are being delivered via private finance funding using the PF2 structure," the company said.
International Public Partnerships shares were up 0.2% at 138.74 pence early Thursday.
By Samuel Agini; [email protected]; @samuelagini
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