Interim Results for the Six Months to 30 June 2013

RNS Number : 6922M

International Public Partnership Ld

29 August 2013

 



29 August 2013

 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2013

~ Strong cashflows support increased distribution ~

International Public Partnerships Limited (INPP), the listed infrastructure investment company, which invests internationally in public infrastructure projects, today announces interim results for the six months ended 30 June 2013.

Financial Highlights (as at 30 June 2013, unless otherwise stated)

· Net Asset Value ('NAV') per share of 121.5 pence (121.0 pence as at 31 December 2012)¹

· NAV growth of 7% (£60.3 million) to £921.3 million (£861.0 million as at 31 December 2012)

· £8.5 million of additional investments made in existing assets during the period

· £46.5 million (before issue costs) of new equity capital raised from shareholders

· IFRS profit before tax of £7.2 million (H1 2012: £19.4 million)

· Half year 2013 dividend up 2.5% to 3.075 pence per share, with full year target dividend of 6.15 pence per share (up 2.5%) as at 31 December 2012)² 

· Total Shareholder Return since listing in 2006 of 75.8% compared to 32.3% on the FTSE All Share over that same period³ 

Portfolio Performance

· Continued performance of underlying projects, generating £30.6 million of gross cash flow (H1 2012: £22.2 million)

· £8.5 million of additional investment made: further 25% stake in Alberta Schools project and £1 million in existing Building Schools for the Future PFI project

· Construction completion reached on the Liverpool Central Library and Archive project. 8% of INPP's portfolio under construction (as at 30 June 2013)

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      ¹  See Half-yearly Financial Report for the six months ended 30 June 2013 for further details on NAV methodology

       ²  Forecast date for payment October 2013

³   Bloomberg – share price appreciation plus income

Incentive Fee and Investment Advisory Agreement

· As announced separately today, following a review and consultation period, the Board has reached an agreement with the Investment Advisor on a number of key changes to the Investment Advisory Agreement, including:  

- Removal of the Incentive Fee from 1 July 2013

- A further reduction in the Base Fee for operational assets

- Duration of the Agreement extended by seven years

- Strengthened termination provisions to ensure the Company has more flexibility to remove the Investment Advisor in the event of poor performance

- Changes are subject to shareholder approval and an Extraordinary General Meeting has been called for Monday 23 September 2013

Outlook

· Continued support from investors and governments alike for private investment in infrastructure

· Investment Advisor's prudent and risk mitigated approach to acquisitions provides protection against secondary market pricing pressure

· INPP less impacted by slower than expected delivery of new government projects, given the ability of Investment Advisor to originate attractive investment opportunities without relying on third party developers and advisors

· The Company continues to have a healthy pipeline of investment opportunities including preferred positions currently under review by the Investment Advisor

Keith Dorrian, Chairman of International Public Partnerships Limited, commented:  "Once again, INPP has announced a healthy financial performance during the first half, providing investors with stability in a fluctuating market. The Company's portfolio of 122 assets continues to perform well, supporting an increased dividend for the sixth successive year.

INPP's geographic reach and disciplined approach to acquisitions, combined with the Investment Manager's origination capabilities, positions the Company well as pricing pressure in the UK secondary market continues.

The renewed government commitment to infrastructure investment in the UK and other jurisdictions will further enhance the Company's attractive pipeline.  We view the outlook for the sector as positive and remain confident in the group's growth prospects."

INPP will be holding an analyst and investor conference call at 12.00pm via a conference call facility. Investors and analysts wishing to join the conference call should dial [phone] and use the confirmation code 8322619.

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

www.internationalpublicpartnerships.com

Amber Infrastructure Erica Sibree	[phone]
FTI Consulting Ed Berry Harry Stein	[phone] [phone]

About International Public Partnerships:

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), regulated asset and other similar procurement methods.

Listed in 2006, INPP is a long-term investor in 122 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.

Amber Fund Management Limited is the Investment Advisor to INPP and consists of approximately 70 dedicated staff who manage, advise on and originate projects for INPP.

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

 

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