HICL Infrastructure PLC

Latest Results (02.01.2025):

Income and Earnings

For the six months ending 30 September 2024, HICL Infrastructure PLC reported an income of £71.7 million, a significant increase from £10.9 million in the same period of the previous year. The earnings per share (EPS) for this period was 2.2p, compared to a loss of 1.4p per share in September 2023. This improvement reflects the company's enhanced financial performance and operational efficiency.

Net Asset Value

HICL Infrastructure PLC's Net Asset Value (NAV) per share as of 30 September 2024 was 156.5p, slightly down from 158.2p in March 2024. The decrease in NAV per share was primarily attributed to increased forecast cost risks associated with the condition of certain PPP assets. Despite this, the company's growth assets contributed positively to the portfolio return.

Dividend and Cash Cover

The Board of HICL Infrastructure PLC reaffirmed its target dividend of 8.25p per share for the financial year ending 31 March 2025 and provided guidance for a dividend of 8.35p per share for the year ending 31 March 2026. The dividend cash cover improved to 1.07x for the period, or 2.06x when including profits on disposals, indicating a strong ability to support dividend payments.

Portfolio Performance

HICL Infrastructure PLC's portfolio performance for the period lagged expectations due to increased forecast costs linked to facility conditions in a subset of the PPP portfolio. However, the company's growth and construction assets performed well, contributing positively to the overall portfolio return. The weighted average discount rate increased to 8.1%, reflecting adjustments in the PPP segment.

Outlook and Strategic Focus

Looking ahead, HICL Infrastructure PLC remains focused on strategic asset rotation to enhance shareholder value. The company has successfully executed asset disposals and initiated a share buyback program, positioning itself to capture investment opportunities that offer compelling returns. The Board expects continued improvement in cash generation and dividend coverage, supported by higher inflation and yield contributions from growth assets.