Interim Management Statement

RNS Number : 9555R

Babcock&Brown Public Ptnrships Ltd

08 May 2009

 



Babcock & Brown Public Partnerships Ltd

Interim Management Statement 

For the period 1 January 2009 to 8 May 2009

Babcock & Brown Public Partnerships Limited is a Guernsey incorporated investment company. The Company offers shareholders an exposure to investments in infrastructure assets, particularly those with a public or social character such as those developed under public bodies through private finance initiatives or public private partnership procurement.

At 8 May 2009, the portfolio comprised economic interests in 50 projects with a geographical split as detailed below:

Location	Number of projects	Sector	8  May  2009 %1	31 December 2008 % 1
United Kingdom	36	Health Govt accommodation Courts Police Authority Education	57	59
Australia	7	Health Roads/Tunnels Health/Custodial Entertainment	18	18
Canada	2	Education Courts	4	4
Belgium	1	Transport	8	8
Germany	1	Transport	8	6
Ireland	1	Courts	4	4
France	1	Health	<1	<1
Italy	1	Health	<1	1

• This breakdown is based on the fair value market valuation of the Group's investments calculated utilising discounted cash flow methodology, adjusted for European Private Equity and Venture Capital Association (EVCA) guidelines. 

New Investments in the period

There were no new investments in the period.

Interim Distribution

An interim dividend of 2.7 pence per share is to be paid on 13 May 2009 to shareholders on the register at 27 March 2009. This was for the period 1 July to 31 December 2008.

In December 2008, the directors announced their intention to increase the distribution payment to 5.55 pence per share for 2009.

Management Update

Alongside the results announcement on 30 March 2009, the Company advised that a new group, Amber Infrastructure Group Limited (Amber), had entered into a conditional agreement to acquire the rights to provide advisory and management services to the Company that were previously supplied by Babcock & Brown. The agreement is amongst other things, conditional upon approval by the shareholders at the EGM, scheduled for 18 May 2009. Shareholder approval has also been sought to change the Company's name to 'International Public Partnerships'. Approval of the resolutions at the EGM will sever all remaining connections to Babcock & Brown.  

Amber consists of a management team and staff of 41, led by Giles Frost, Hugh Blaney and Michael Gregory. The team was responsible for the creation of BBPP in 2006 and has provided services to the Company since that time. As a result, there will be full continuity in terms of personnel and resources for BBPP and its shareholders.

Following the announcement, and the sale of Babcock & Brown's stake in the Company via a placement on 31 March 2009, the BBPP share price has increased by 21% to 104.0 pence per share, and is currently within 10% of net asset value (NAV: 115.2 pence per share).

Outlook

The Company continues to receive a regular flow of investment proposals, notably an increasing amount of solicitations via external advisors and vendors which continue to be reviewed by the Company and its manager. Amber will also, on completion of the agreement, take over the origination and development work previously undertaken by Babcock & Brown, and the Company will continue to benefit from a first right of refusal of all new projects developed in its target markets. The pipeline of investment opportunities therefore appears strong.

The Company's asset portfolio continues to perform well with revenues in line with management forecasts. Therefore, despite the current economic downturn, management has a very high degree of confidence in its ability to deliver projected revenues and therefore distributions to investors, which we anticipate, once again, will be entirely covered by operating cashflow and offer the potential for growth in future years.  

Review for the period

Top Ten Investments of the Group based on indicative Net Asset Value (NAV) as at:

8 May 2009		31 December 2008
Investment	%	Investment	%
Hereford & Worcester Magistrates Courts	9.5	Hereford & Worcester Magistrates Courts	9.5
Royal Children's Hospital, Victoria, Australia	8.8	Royal Children's Hospital, Victoria, Australia	8.9
Diabolo Project	8.3	Northamptonshire Schools	8.9
BeNEX	8.2	Diabolo Project	8.1
Northamptonshire Schools	7.3	Strathclyde Police Training Centre	7.0
Strathclyde Police Training Centre	7.2	BeNEX	5.8
Angel Trains	5.2	Angel Trains	5.8
Tower Hamlets Schools	4.4	Tower Hamlets Schools	4.4
Alberta Schools	3.6	Dublin Courts, Ireland	3.9
Dublin Courts, Ireland	3.4	Alberta Schools	3.6

Key performance measures

	8 May 2009	31   December  2008
Share Price	104.00 pence	78.50 pence
Total number of shares	374,714,645	374,714,645
Weighted average discount rate1	8.23%	7.95%
Drawn corporate debt facility	£58m	£58m
Uncommitted cash	£39.8m	£32.8m
BBPP performance vs. FTSE ALLSHARE since IPO2	+33.5%	+9.3%
BBPP performance vs. FTSE ALLSHARE since 31 December 20082	+30.5%	N/A

• The discount rate has been adjusted after calculating the change in risk-free rates between 31 December 2008 - 31 March 2009 in all geographies in which BBPP operates. No adjustment has been made to the risk premiums that were applied at 31 December 2008. Risk-premium adjustments are only considered every half year.

• BBPP Performance v Performance of FTSE ALLSHARE Index to 7 May 2009.

For further information, please contact:

Babcock & Brown:            [phone]

Investors:     Bianca Francis     

Media:          Anthony Kennaway     

This interim management statement has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules and the interim management statement should not be relied on by any other party or for any other purpose.

 

END

 

 

IMSZGGGKFRMGLZM