HICL Infrastructure reports that over the six months to 30 September 2016 it delivered a 2.5% rise in NAV per share to 145.7p, up from 142.2p at 31 March 2016. Earnings per share were 6.1p (2015: 5.6p). Net operating cash flow of GBP60.9m (2015: GBP58.9m) covered the interim dividends paid in the six month period 1.26 times (2015: 1.30 times).
The first quarterly interim dividend for the year to 31 March 2017 of 1.91p was paid on 30 September 2016. The second quarterly interim dividend of 1.91p was declared on 10 November 2016 and is due to be paid on 30 December 2016. The Company remains on target to deliver aggregate dividends of 7.65p per share this financial year; and the Directors have also re-affirmed the 7.85p target for the next financial year.
The NAV was positively affected by the reduction in the weighted average discount rate, accretive tap issuance combined with active asset and portfolio management. This was partially offset by the reduction in long-term deposit interest rates and lower inflation than our assumptions in the period. Foreign exchange hedging resulted in a net immaterial impact on NAV from the weakening of Sterling in the period.
At 30 September 2016, the portfolio consisted of 107 investments and a further five that were subject to limited conditions to completion. 83% of the portfolio by value is invested in the UK with the remainder invested in Canada, Australia, the Netherlands, France and Ireland. There are currently five investments in the portfolio under construction, which collectively constitute approximately 2% of the portfolio by value. 6% of the portfolio by value is invested in concessions with demand-based revenues.
During the period, the Group completed four investments and one incremental investment for GBP79.8m. Also during the period, the Group signed a contract to acquire four further investments and two incremental investments for GBP22.7m, which are included in the September 2016 Directors’ valuation on an Investment Basis as commitments. Total investment commitment in the period was GBP102.5m. The contract to acquire an interest in the A63 motorway in France remains subject to a small number of conditions outstanding and is expected to complete by Q1 2017.
HICL : HICL reports 2.5% uplift in NAV