International Public Partnerships has published its interim accounts covering the six months ended 30 June 2016. It reported continued Net Asset Value growth over the half year of 6.3% to GBP1,371.4m (31 December 2015: GBP1,290.2m) with NAV per share over the same period increasing 6.1% to 138.2 pence (31 December 2015: 130.2 pence).
In line with its stated dividend target of 6.65 pence per share for the 2016 financial year, it declared a dividend of 3.325 pence per share for the six months to 30 June 2016. This represents c.3.1% growth over the prior corresponding period and is consistent with the c.2.5% average annual dividend growth that has been delivered to investors since inception over nine years ago. The board has once again published a minimum dividend target, being 6.65 pence per share for 2016, and guidance of 6.82 pence per share for the 2017 dividend, an average increase of c.2.5% per annum.
INPP made investments and commitments to five infrastructure investments in the electricity transmission, regulated utility, education and transport infrastructure sectors totalling over GBP60.0 million during the period. Additional commitments or investments of GBP91.2 million have also been made into additional infrastructure projects in the months since the end of the half year.
The largest investment during the period was a commitment to the Westermost Rough offshore transmission project, where GBP26.8 million was invested. This is their sixth such investment into what they believe to be one of the most attractive sectors in the UK at the current time.
They also continued to invest into the GBP4.2 billion Thames Tideway Project which will deliver a 25 kilometre ‘super-sewer’ under the River Thames in London. As at the date of this report they had invested some GBP76.0 million, with an additional GBP134.0 million committed by way of letter of credit to be drawn down during the construction phase of the project over the next year and a half.
The capital required to fund these new investments came from a mix of existing cash resources, its corporate debt facility and the proceeds from share issuance in the previous period. They also conducted a capital raising in the first week of July 2016. Despite the turbulent market conditions that followed the Brexit decision, the offer closed significantly oversubscribed at GBP125 million. This new capital was immediately used to reduce the drawn balance of the Company’s revolving credit facility and to invest into committed investment opportunities.
INPP : International Public Partnerships reports 6% NAV growth