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To deliver a long-term, stable income to shareholders from a diversified portfolio of infrastructure investments positioned at the lower end of the risk spectrum.
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"The period has seen continued emphasis on asset management as we work pro-actively with clients and suppliers to drive efficiency savings and to fulfil any new requirements or variations cost effectively and on time. "With a healthy pipeline in both the UK and overseas, together with a number of opportunities at an advanced stage, the company is now in a position to issue new shares by way of tap issuance. This will enable us to respond to the strong investor interest in the company." The company increased the interim dividend payment from 3.35p to 3.425p per share, and said it remains committed to the target distribution of 7.0p per share for the year ending March 31st 2013.
Investment infrastructure group HICL posted a strong rise in pre-tax profit in the half year ended September 30th, although earnings per share slipped 0.1p to 4.9p. Revenue profits before tax climbed from £15.7m to £22.0m, capital profit before tax increased from £15.0m to £20.2m, giving a total profit for the year of £42.2m, compared to £30.7m the same period the previous year. The net asset value (NAV) per share rose 1.4p to 114.2p since the end of March. Over the same period, the value of the portfolio at September 30th climbed 12.6% to £1,015.9m, compared to £902.0m. Graham Picken, Chairman of the board, said: "I am pleased to report good progress by the company in the period to September 30th 2012. Following the conversion of the C shares issued in March 2012, we repaid all of the group's outstanding debt and we remained ungeared at the period end. We invested the balance of C Share proceeds in acquiring new projects as well as additional stakes in projects where the group is already a significant shareholder.
HICL Infrastructure Company has sold its 50 per cent equity and loan note interest in Doncaster Schools PFI (private finance initiative) project to Vinci Pensions, an affiliate of the co-shareholder Vinci. The group will earn £5.3m from the sale, which represents a small profit on the acquisition price in December 2011. The disposal follows a review to evaluate the possible opportunities for portfolio rationalisation. Graham Picken, Chairman of the company said: "With a growing portfolio of investments, some of which have been acquired as part of multi-asset transactions, as in the case of Doncaster Schools, the company will from time to time divest certain projects in order to optimise portfolio performance."
Infrastructure investment firm HICL has acquired a 50 per cent equity and 75 per cent loan note interest in Prime LIFT Investments (PLI), a 60 per cent private-sector partner in two LIFT (Local Improvement Finance Trusts) companies, the Birmingham & Solihull LIFTCo and the Staffordshire LIFTCo. These two companies have developed 25 new health and social care facilities with a total development cost of approximately £170m over the last eight years. HICL will work with Prime, along with the public-sector shareholders in the two LIFTCos, to continue to provide the health and social care facilities within the Birmingham & Solihull and Staffordshire areas. The group has also acquired a further 9% equity and loan note interest in the Connect Project, which is focused on upgrading and operating London Underground's radio and telecommunications systems, giving it a 28.5% interest overall. The total consideration for the two acquisitions was £33.75m, which was funded from the group's existing cash and debt resources. The acquisitions bring the total number of infrastructure investments within the group's portfolio to 75.
Infrastructure investment firm HICL Infrastructure has made two new investments in private finance initiative (PFI) projects. The first purchase sees HICL taking total ownership of the Dorset Fire & Rescue PFI Project with the acquisition of Carden Croft's minority 33.0% equity and loan interest. The project is a 27-year concession to design, build, finance and maintain a combined Police and Emergency Services Headquarters building in Poole, a Fire Station in Poole and a Fire Station and Fire Services Headquarters building in Poundbury, Dorchester. Hard facilities management services are undertaken by Cofely Technical Services (part of the GDF Suez group). The second acquisition is for a 16.0% equity and loan note interest in the Ealing Care Homes PFI Project, which is being purchased from Galliford Try Investments. The acquisition increased HICL's stake to 84%. The project is a 32-year concession to design, build, finance, operate and maintain four care homes for the London Borough of Ealing. The total consideration for the two purchases is £4.9m, funded from HICL's existing cash resources. As is normally the case with HICL's acquisitions, the group said the purchase price is in line with the current valuation of other UK PFI projects within its portfolio.
HICL Infrastructure is to spend 10m pounds to take bigger holdings in four public/private partnership projects. The acquisition of further stakes in Romford Hospital, Fife Schools, Exeter Crown Courts and Stoke Mandeville Hospital will all come from subsidiaries of French firm Sodexo SA. The deal takes HICL's total interests in these projects to 66.67% on Romford Hospital, 44.4% on Fife Schools and 100% on both Exeter Crown Courts and Stoke Mandeville Hospital.
Tempus thinks infrastructure investor HICL will appeal to some investors. It takes stakes in school, hospital and road projects, then pootles along with a decent dividend and possible asset growth. Last year it returned 8% and has little exposure to the Eurozone. Dull, but possibly a haven amidst the current storm is the advice.
"Looking ahead, we remain confident that our investment portfolio is of sufficient quality to perform resiliently. Cash flows are generally predictable and, whilst it is acknowledged that the valuation of the portfolio is in part correlated to the rates that apply to long-dated government debt, we are not anticipating significant fluctuations as a consequence," Picken said.
During the course of the year the company raised £325.9m before expenses through share issues. "Opportunities in the UK secondary market for PFI [private finance initiative] assets remain good," claimed Graham Picken, HICL Infrastructure's Chairman. "We welcomed the UK government's new Infrastructure Plan and, although there is detail to be worked through, it is clear that the private sector has a crucial part to play in funding and managing the next generation of infrastructure projects," Picken adde
On a consolidated international financial reporting standards (IFRS) basis, the group had net debt of £1,473.3m at March 31st 2012 (31 March 2011: £532.8m). This increase in net debt over the year reflects the nine new subsidiaries formed arising from the various acquisitions in the year. Cash received from the portfolio by way of distributions, capital repayments and fees was £51.2m (2011: £45.6m). After group costs, net cash inflows of £41.0m adequately covered the distributions paid in the year, the group said, adding that the growth in cash generated was in line with its projections.
Profit before tax and valuation movements was £33.2m, versus £24.3m a year earlier. The company increased the fair value - what it considers the current market value - of its investments by £28.8m this time round, having booked a £20.9m fair value uplift the year before. Total profit before tax on an investment basis therefore increased to £62.0m from £45.2m the previous year. After a minimal tax payment of £0.1m both this year and last that shifted earnings up to £61.9m versus £45.1m the year before. Earnings per share, on an investment basis, rose to 9.8p from 8.9p the year before.
Total revenue in the year to March 31st on an investment basis was £48.1m, up from £37.4m the year before. Capital appreciation added a £24m boost, up from the previous year's capital gain of £18.8m, taking total revenue up to £72.1m from £56.2m the year before.
Net asset value (NAV) per share after the dividend distribution stood at 112.8p at the end of March, up 2.8% on a NAV per share of 109.7m at the end of March 2011. The group announced a second interim dividend of 3.5p, making the total pay-out for the year 6.85p, up 2.2% on the previous year. The company is targeting a payment of 7.0p per share for the current financial year.
Infrastructure projects investor HICL said the value of its portfolio increased by just over a third in the year to the end of march. The directors' valuation of the portfolio at the end of March stood at £902.0m, up 34% from the £673.1m valuation a year earlier. The company as a whole has a stock market valuation (as at May 22nd) of around £1,040m.
HSBC GAM’S MORRELL OPENS POSITION IN HICL INFRASTRUCTURE HSBC Global Asset Management’s Guy Morrell has opened a position in the HICL infrastructure investment trust in his £37.5m Open Global Property fund. The position - now roughly 5 per cent of the fund - was introduced in February to make the portfolio more diversified. Mr Morrell said: “HICL’s assets are largely real estate, with alternative sectors that you can’t normally get access to through normal routes, like education and healthcare. “It’s also weakly correlated to the rest of the property market, and it throws off a stable income from investments underpinned by local government.” The investment was made using part of the fund’s holding in cash, which Mr Morrell had built up since November 2011 as concerns about the future of the eurozone increased. He has been putting the money to work since then as sentiment improved following central bank assistance. HICL’s £1.1bn portfolio includes 18 healthcare holdings, primarily hospitals, and 29 schools and educational facilities. It also owns police stations, roads and government offices. Mr Morrell said government cutbacks should not affect HICL’s portfolio as it consists of strong contracts related to key central and local government assets. Source: http://www.ftadviser.com/2012/05/14/investments/multi-manager/hsbc-gam-s-morrell-opens-hicl-position-6kmCioa90xfTBThNdhf4qO/article.html?refresh=true P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
HICL TAKES 30% STAKE IN BIRMINGHAM NEW HOSPITALS PFI PROJECT HICL Infrastructure, which invests in infrastructure projects, has taken a sizeable interest in the Birmingham New Hospitals public finance initiative (PFI) project. The firm is paying £34.6m to buy a 30% stake in the project from Royal Bank Project Investments, a fee which is in line with the current valuations of similar UK PFI projects in the group's portfolio.. The project is a 40 year concession to design, construct, finance and maintain a new acute hospital and six new mental health facilities in Birmingham. The new hospital and mental health facilities were built by a joint-venture between Balfour Beatty Construction and Hayden Young under a £553m fixed-price construction contract. The new buildings have been built in phases over five years. The mental health facilities were handed over in 2008 while the acute hospital was substantially completed and handed over in September 2011, with the remaining works due to be finished in August 2012. James O'Halloran, Investment Director at InfraRed Capital Partners (HICL's investment adviser) said: “The acute hospital delivered by the project is one of the largest single hospitals in Europe and we look forward to working with all stakeholders to ensure that the final phase of construction is completed successfully and the project continues to perform well." Source: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20110507
HICL BUYS MAJORITY STAKE IN COLCHESTER PFI PROJECT HICL Infrastructure, the infrastructure investment firm, is now the majority stakeholder in the Colchester Garrison private finance initiative (PFI) project after buying up a stake from design and engineering consultancy WS Atkins. HICL has upped its stake in the project from 42% to 56% at a cost of £15m, which is in line with the current valuation of similar UK PFI projects in the group's portfolio. The deal comprises a gross consideration of £15m minus £0.6m previously received by Atkins under loan notes. The project is a 35-year concession to design, construct, finance and maintain a new garrison facility at Colchester, Essex for the Ministry of Defence (MOD). The new garrison has been built partly on an existing garrison site and partly on an adjacent brownfield site owned by the MOD. The project involved capital expenditure of around £550m. Construction was undertaken by Sir Robert McAlpine Limited and is now complete. Catering, cleaning and transport services are provided by Sodexo Defence Services Limited. Sodexo Property Solutions (formerly known as Atkins Facilities Management Limited) is responsible for estate and grounds maintenance, contract management and security, waste management and life-cycle. Source: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20080848
SOLID RETURNS FROM HICL INFRASTRUCTURE The UK government's National Infrastructure Plan has helped focus attention on opportunities for investing in areas such as schools, hospitals and transport, in many cases through public private partnerships (PPP and P3) or private finance initiative (PFI) projects. This has encouraged a number of UK pension funds to jointly launch a pension infrastructure platform, which is expected to get underway by investing £2 billion in infrastructure projects over the next 12 months. Individual investors have been able to gain diversified exposure to the infrastructure sector since March 2006, when HSBC Infrastructure was launched as a Guernsey-based, but London-quoted, offshore investment company. Now known as HICL Infrastructure (HICL), it has proved popular with investors and has been able to greatly expand its issued capital. Spotlight on HICL Infrastructure HICL has achieved a 46% NAV total return over the past five years, in line with 3i Infrastructure and well ahead of IPP. It has raised its dividend every year and expects to pay out 7p in the year to March 2013. The premium on its shares has fallen from a peak of 7.7%, partly because HICL raised £250 million through a heavily oversubscribed C share issue in March. More than half the proceeds of the C share issue have been used to repay £139 million of debt, freeing up HICL's £150 million borrowing facility for future investments. A further £39 million has been used to acquire a stake in the Connect PFI project, which has a concession running until 2019 to upgrade London Underground's radio and telecommunications network. With other new investments in an advanced stage of negotiation, there should be minimal cash drag when the C shares are converted into ordinary shares at the end of April. The company is managed by InfraRed Capital Partners, which bought out HSBC's infrastructure and real estate business. The team of 32 specialists manages three other infrastructure funds with combined assets of around £900 million. HICL's portfolio holds stakes in more than 70 projects in government accommodation, education, health, transport, utilities and law and order. Although it also has stakes in a high-speed rail project for the Dutch state and a highway project in Canada, its overseas exposure is relatively low, but the manager is exploring projects in Australia, Canada and Europe. The InfraRed team has expressed an interest in investing up to a third of HICL's assets in projects that are still in the construction phase or in demand-based concessions. These would add to the portfolio's growth potential but are higher risk than its current focus on operational PPP, PFI and P3 concessions. The management fee is 1 to 1.5% of gross assets, and there is no performance fee. Source: http://www.iii.co.uk/articles/35134/solid-returns-infrastructure-come-cost
galore on ere today?....
I already have a holding of these in my ISA and am entitled to subscribe for these. Just read the info. think I will take it up as I can get more shares at £1.00 so they are at the moment 19p cheaper than the going rate.. They will be converted into ordinary shares no later than 31 May 2012 ( possibly earlier) they will then rank equally with ordinary shares in respect of any and all dividends after conversion. I can also subscribe to more than my entitlement if I wish for the same price.
Can anyone tell me how i can subscribe for the new c shares
Graham Picken, Chairman of HICL Infrastructure Company Limited, said "The Directors are pleased with the Company's performance. We welcome the acquisitions made in the period, which complement the existing portfolio. Individual investments have performed as expected, with no material operating issues. Consequent upon the successful acquisitions made in May and June, the Company was able to manage the share premium to net asset value by issuing additional shares into the market, thereby raising further equity capital on terms at a premium to net asset value per share. With the recent publication of HM Treasury's updated guidance on PFI, which reflects the review of the Romford PFI project, the Investment Adviser is now using these latest findings, together with the good practice already developed on other investments to assist public sector clients who seek to enhance the performance of their projects. This work will continue and we are confident of making good progress and of meeting our investment objectives."
Highlights · Five new UK PFI investments acquired and three additional stakes in existing investments made during the period, for a total consideration of £70.35m · Net Asset Value per share at 30 June 2011 was circa 112.8p, positively impacted by higher UK inflation and acquisitions made · 22.8m shares placed for cash at a price of 115p raising £26.2m before costs · The £30.0m Kemble Water junior loan redeemed in April at par · Investment portfolio performance and cashflow in line with projections · The Investment Adviser's team has been proactive in assisting public sector clients to evaluate and deliver efficiency savings within existing projects · New investment opportunities which meet the Group's Investment Strategy continue to be assessed · The second interim dividend of 3.425p per share was paid on 30 June 2011 and there was an 11.07% take up of the scrip dividend alternative
http://www.investegate.co.uk/Article.aspx?id=201108010700094286L
Tony Roper, Director of InfraRed Capital Partners Limited, HICL's Investment Adviser, said: "As we noted in the Annual results announced in May, we have a significant pipeline of opportunities under review and South Ayrshire Schools is one of those opportunities. This acquisition adds to the Company's existing portfolio of Schools projects and we look forward to working with the Local Authority and the other stakeholders to ensure that these projects continue to be well-managed and successful."