2011 Annual Results

RNS Number : 6329B

International Public Partnership Ld

19 April 2012

 



19 April 2012

2011 ANNUAL Results

- Substantial NAV growth and record year for investment activity -

International Public Partnerships Limited (INPP), the listed infrastructure investment company, which invests internationally in public infrastructure projects today announces annual results for 2011.

Highlights (as at 31 December 2011, unless otherwise stated)

· Net Asset Value (NAV) per share increased from 113.1p (at 31 December 2010) to 116.9p

· 9.2% shareholder total return for 12 months ended 31 December 2011 (FTSE AllShare - minus 3.2 %)

· 54% shareholder total return from IPO in November 2006 to 31 December 2011

· £122.0 million of new capital invested across 22 infrastructure investments

· Fifth consecutive year of dividend growth, with full year dividend of 5.85p per share

· The Company became a major investor in the UK offshore transmission sector

· Strong investment pipeline, as the Company looks to capitalise on an evolving sector and its strong existing public sector relationships in all target geographies

· Positive outlook for infrastructure investment with the Company well positioned with its strong geographic diversification

· Increased 2012 full year target distribution of 6 pence per share (up 2.6% from 2011)

Financial Performance

· NAV growth of 15.2%, to £624.3 million, (£541.9 million as at 31 December 2010) and NAV per share of 116.9p (113.1p as at 31 December 2010)

· Profit before tax of £13.2 million for the year ended 31 December 2011 (2010 restated: £16.5 million) and profit after tax of £16.1 million (2010 restated: £15.1 million)

· Second half distribution of 2.925 pence per share bringing the full year dividend to a total of 5.85p per share

· Successful completion of tap issue of £54.4 million in September 2011

Portfolio Performance

· Portfolio continued to perform in line with expectations, with 26% of the portfolio under construction and 45% of assets situated outside of the UK market

· 2011 was the busiest year for acquisitions for the Company since inception, with £122.0 million of investments. The acquisitions, which are all performing in line with or ahead of targets, include:

-     UK Government's interest in the Building Schools for the Future programme, bringing stakes of between 10-20% in 49 local partnerships involving over 100 schools - subsequent add on investments totalled £0.7 million

-     The Company became a major investor in the UK offshore transmission sector through 100% investments in the Robin Rigg, Gunfleet Sands, and Barrow projects

-     26.6% interest in Gold Coast Rapid Transit, a A$1 billion light rail project linking University Hospital and Broadbeach in Queensland, Australia

· Significant construction landmarks achieved on two of the Company's largest assets - Phase 1 of the Royal Children's Hospital in Melbourne and Orange Hospital in Australia both completed during the period

Infrastructure Market

· There continues to be strong high level support for private sector involvement in the provision of public infrastructure by the UK Government and across the jurisdictions where INPP is active

· This positive trend continues to further increase investor appetite,  particularly from pensions fund investors, for infrastructure as an asset class

· The industry needs to be more transparent in demonstrating the value for money and benefits that private sector investment in infrastructure brings, and showing more sensitivity to public sector and taxpayer concerns 

Outlook

· Overall, the Board remains positive about the prospects for the Company in 2012 

· Renewed confidence in the flow of primary and secondary infrastructure opportunities in the Company's core markets and beyond, leveraging strong public sector relationships to develop further opportunities to acquire investments in existing infrastructure projects

· A number of investment opportunities have progressed to an advanced stage and combined with the additional strong investment pipeline, the Board is actively considering a capital raising to support these opportunities.  Further details to be provided in due course.

Keith Dorrian, Chairman of International Public Partnerships Limited, commented:

"The Company and our shareholders continue to benefit from the opportunities arising from the renewed commitment shown by governments to infrastructure investment across our geographies.

There is a heightened awareness of the pivotal role private capital plays in these long-term public sector programmes, resulting in a surge in interest from an increasingly wide investor base, attracted by the risk reward profile of the Company and asset class. 

Taking advantage of the positive investment environment through our healthy pipeline of attractive investment opportunities is critical to the ongoing success of the Company and as such, we are actively considering our options with respect to raising more equity capital.

We look forward to 2012 with confidence."

INPP will be holding a results briefing at 9:30am today at FTI Consulting - 330 High Holborn, London WC2A 1PB. For those investors and analysts who cannot attend in person, a conference call facility will also be available. The dial-in number for the call is [phone], and the confirmation code is 3416635.     

A copy of the results presentation can be downloaded from the Company's website:

www.internationalpublicpartnerships.com

Enquiries:

Amber Infrastructure Erica Sibree	[phone]
Numis Securities Hugh Jonathan/Nick Westlake	[phone]/1345
FTI Consulting Ed Berry/Harry Stein	[phone]/7141

Notes to Editors:

About International Public Partnerships (INPP):

International Public Partnerships (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP), private finance initiative (PFI) and other similar procurement methods.

Listed in 2006, INPP is a long-term investor in 117 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and renewable energy projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term government-backed yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.

Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of more than 60 dedicated infrastructure specialists which originate and source a strong pipeline of projects for INPP.

Visit the INPP website at www.internationalpublicpartnerships.com for more information.

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/6329B_-2012-4-18.pdf 

 

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