LONDON (Alliance News) - Closed-ended investment company BBGI SICAV SA on Friday reported an increase in its net asset value in the first half of 2018 and raised its dividend target for both 2018 and 2019
The company's net asset value per share increased to 132.74 pence on June 30 from 129.69p at the end of December due a strong portfolio performance.
Shares in BBGI were up 0.8% at 147.60p on Friday in London.
"A variety of active asset management initiatives during the year resulted in approximately GBP8.9 million of value enhancements to the portfolio," said BBGI Chairman David Richardson.
"Overall during this period, BBGI's underlying portfolio has performed well with cash receipts ahead of plan," he added.
BBGI invests primarily in public-private partnership infrastructure assets, including a 100% equity stake in a number of UK and German schools, such as Belfast Metropolitan College and Cologne-Rodenkirchen School.
Its total return since its December 2011 listing is 80%, or an annualised total shareholder return of 9.4%.
BBGI's operating income increased to GBP41.0 million from GBP31.8 million and its pretax profit came to GBP34.1 million, up from GBP25.3 million the year before.
The company has declared a 3.375p interim dividend and raised its target dividend for the full year to 6.75p, up 3.8% from 6.50p last year. BBGI also upped its 2019 dividend target by 3.7% to 7.00p.
Richardson retired as chair on Thursday and will be succeeded by Colin Maltby, the company's senior independent director.
"While the public market sentiment has been less positive for the listed public-private partnership infrastructure sector than in the recent past, private market interest for public-private partnership assets has remained very strong as evidenced by a number of recent transactions at high valuation levels, and the possible takeover bid for John Laing Infrastructure Fund Ltd at a significant premium to its current net asset value," said Richardson.
"Against this backdrop, I encourage investors to reflect on the benefits of having a well-diversified portfolio of availability-based assets offering long-term returns and delivering attractive and sustainable dividends," he added.