HICL Infrastructure hails strong portfolio return, seeks next chair

(Alliance News) - HICL Infrastructure PLC on Wednesday posted a portfolio return ahead of expectations, alongside noting a search for its next chair and planing a continuation vote from 2028.

HICL Infrastructure is a London-based closed-ended infrastructure investment company managed by InfraRed Capital Partners Ltd.

As of March 31, the company's net asset value per share was 160.2 pence, improved from 153.1p a year earlier. After the payment of the fourth-quarter dividend, NAV per share was 158.1p, versus 151.0p on-year.

Total NAV return for the year ended in March picked up to 10.3% from 2.0% the previous year.

Underlying portfolio return was 12.2%, compared to 7.7% in financial 2025. HICL Infrastructure hailed this outcome as "significantly ahead of expectations, supported by outperformance from growth assets and active asset management".

The company paid dividends of 8.35p per share in financial 2026, in line with guidance and ahead of 8.25p the year prior. It plans to raise this to 8.50p in financial 2027 and 8.65p the following year.

At the end of March, HICL Infrastructure held an undrawn revolving credit facility, alongside GBP333.3 million in disposal proceeds and GBP87.7 million in cash.

Chair Mike Bane commented: "The company enters the 2027 financial year in a position of financial strength. Cash and earnings generation have strong inflation linkage, the balance sheet is robust, and portfolio companies continue to perform well. These factors provide a stable and flexible foundation from which the board can continue to take disciplined capital allocation decisions and progress the strategy."

The chair noted that the share price "continues to be at an unacceptable discount to NAV", though the discount has narrowed since March 31.

HICL Infrastructure shares rose 2.2% to 131.59p on Wednesday morning in London, having advanced 5.4% over the past month and 16% over the past year.

From the 2028 annual general meeting, the company's board intends to propose a continuation vote, which will be triggered if its shares trade at an average discount to NAV per share of more than 10% over the prior financial year.

Bane continued: "The broader environment for core infrastructure continues to strengthen... At the same time, governments across our core markets are signalling renewed commitment to infrastructure investment. Together, these conditions favour patient, well‑capitalised owners with scale, such as HICL. This is set against a backdrop of continued macroeconomic uncertainty, driven in part by geopolitical tensions, which are expected to contribute to ongoing market volatility over the coming year."

Bane's term is approaching nine years in mid-2027, with HICL Infrastructure on Wednesday saying the search for its next chair is underway.

"Enhanced management agreement terms, together with the proposed introduction of a biennial continuation vote, further strengthen alignment and accountability to shareholders as the company continues to deliver resilient income and long-term capital growth," Bane added.

By Holly Munks, Alliance News reporter

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