International Public Partnership says Carillion hit was just £1.5m – International Public Partnership has released results for the year ended 31 December 2017. Highlights are:
- Net Asset Value (‘NAV’) growth to GBP2.0 billion (2016: GBP1.6 billion) translates into NAV per share growth to 145.0 pence (2016: 142.2 pence). They say that this reflects steady progression throughout the year but does not capture the future value of recent acquisitions that are expected to bring growth to the portfolio once ‘bedded down’.
- Profit before tax was GBP106.4 million, down from GBP175.3 million. But the change largely reflects exceptional foreign exchange moves related to Brexit. Their revenues have a strong inflation linkage – projected increase in return of 0.79% p.a. for each 1.00% p.a. increase in inflation (2015: 0.78%).
- Full-year dividend increase of c.2.5% to 6.82 pence per share (2016: 6.65 pence per share). This was covered by cash generated by the portfolio 1.2x. Two-year forward dividend growth guidance says 2018 and 2019 full-year dividends should be 7.0p and 7.18p respectively, annual dividend increases of c.2.5% – continuing trend since IPO in 2006.
- Two capital raisings in 2017 secured a total £410m. This has been fully deployed into new opportunities.
Addressing the issues of PFI and Carillion, the company said “While noting recent political debate about the merits of private capital in financing public infrastructure, INPP believes substantial protections to shareholder value exist. Nevertheless, INPP acknowledges its continued responsibility to demonstrate the value for money it delivers to the assets under its management and to their end-users.” and INPP’s “Carillion-related issues [have been] substantially resolved with estimated overall impact projected to be less than GBP1.5 million. No increased costs are anticipated for the public sector nor any job losses for site-based former Carillion employees.”
PORTFOLIO UPDATE
- GBP272.5 million investment in National Grid’s gas distribution networks, Cadent.
- GBP78.2 million follow-on and final investment in London’s new super sewer, the Thames Tideway Tunnel.
- Appointed preferred bidder on seventh OFTO project with c.GBP50 million investment in connection to 402MW Dudgeon Offshore Wind Farm.
- A$154 million (GBP86.8 million) additional interest in Australian rolling stock project, Reliance Rail.
- EUR8 million (GBP7 million) commitment to new German police centre, Offenbach.
- A$35.6 million (GBP20.8 million) investment in Australian schools project, Victoria New Schools.
- GBP1.5 million investment to acquire further interest in Wolverhampton Building Schools for Future (“BSF”) project, increasing the Company’s stake to 90%.
- Proportion of a further 14% interest in Cadent subject to put and call options between a consortium of leading long-term UK and international investors, Quad Gas Group, and National Grid.
- GBP45 million commitment to invest alongside HM Government in UK digital infrastructure and fibre-to-the-home broadband connections via the National Digital Infrastructure Fund (NDIF).
Rupert Dorey, Chairman of International Public Partnerships Limited, commented: “I am pleased to report another successful year for all our stakeholders where we continued to exceed our dividend return targets and prove our commitment to delivering sustainable, long-term, inflation-linked returns to our shareholders. We continue to believe in the strong risk mitigation that exists across our portfolio and as facilitators of public services through the long-term private investment we provide, we continue to have a responsibility to demonstrate the public benefit of all our activities, to all our stakeholders.”
INPP : International Public Partnership says Carillion hit was just £1.5m