(Alliance News) - HICL Infrastructure PLC on Wednesday hailed the resilience of its portfolio, reaffirming annual dividend guidance on increases to net asset value per share over the first half.
HICL is a London-based investment firm, with a focus on investments in the core infrastructure sector.
For the six months ended September 30, HICL increased its net asset value per share to 164.3 pence, from 163.1p on March 31. It delivered an annualised total shareholder return of positive 6.7%, down from positive 9.8% the previous year.
The company's total return declined 26% to GBP102.6 million, from GBP139.5 million a year prior. HICL attributed this drop to the movement in discount rates relative to the prior period.
At September 30, the portfolio's weighted average discount rate was 7.1%, increased from 6.6% on March 31. HICL argued that the financial impact of this change was mitigated by higher actual and forecast inflation, demonstrating the benefit of its "highly diverse portfolio".
The company recorded income on investments of GBP125.8 million, down 20% from GBP157.2 million a year ago.
Despite seeing lower overall returns, HICL said it was on track to deliver its target dividend of 8.25p per share for the financial year.
It highlighted four acquisitions over the period of a total GBP616 million, arguing that these investments would bolster its resilience "through increased sector and geographic diversity".
The company also reaffirmed its 8.25p dividend target for the next financial year.
"This is a resilient result, reflecting a productive six months for the company. We are operating in an uncertain macroeconomic and geopolitical environment and these results highlight the strength of HICL's defensive positioning with increases to net asset value per share and dividend cash cover achieved in the period," said Chair Mike Bane.
"With continued inflationary pressures, the company's 0.8 times inflation correlation offered by HICL's portfolio remains a key attraction for investors."
Shares in FTSE 250-listed HICL were trading 1.0% lower at 166.60p each in London on Wednesday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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HICL Infrastructure (HICL)