Interim Management Statement
November 17 2010 - 7:05AM
UK Regulatory
TIDMINPP
RNS Number : 3453W
International Public Partnership Ld
17 November 2010
International Public Partnerships Limited
Interim Management Statement
For the period 1 July 2010 to 16 November 2010
17 November 2010
International Public Partnerships Limited ("INPP"), a listed infrastructure
investment company which invests in global public infrastructure projects
developed under the public private partnership (PPP) and private finance
initiative (PFI) procurement methods, today issues the following Interim
Management Statement for the period 1 July 2010 to 16 November 2010.
Highlights:
· Asset portfolio continues to perform in line with expectations
· Reduction in risk free rates likely to positively impact valuation
· Two new NHS LIFT investments during the period
· Successful capital raise of GBP22.3 million through use of tap facility
· Significant pipeline of opportunities at an advanced stage of development
· Current and proposed investments unaffected by Comprehensive Spending
Review
· Encouraging outlook for the wider infrastructure sector.
Asset Performance
The Company's asset portfolio continues to perform well with revenues and cash
receipts in line with management forecasts.
The Company reports its Net Asset Value (NAV) every six months when it publishes
its full and interim results in March and August each year. In addition, the
Company provides quarterly NAV guidance predominantly based around risk free
rate movements in the countries where INPP holds investments.
Since 30 June 2010 (NAV: 112.9p), risk free rates have continued to reduce in
many of the countries where INPP has assets and this can be expected to have a
positive effect on net asset valuation.
Outlook
The Company is pleased to report a significant pipeline of opportunities that
are at an advanced stage of development. These include four U.K. offshore
electricity transmission projects being developed jointly by the Company's
investment advisor, Amber Fund Management Limited ("Amber"), and Transmission
Capital Partners. These projects are expected to be signed in early 2011,
following which INPP will hold 100% of the equity.
The Company is also pursuing a number of opportunities in Australia and Europe
where announcements may be expected before year end. These may include new
investments as well as acquisitions of additional stakes in existing assets.
The Company is encouraged by the wider outlook for the infrastructure sector.
The U.K. government has made several very encouraging announcements about its
intention to facilitate further private sector investment into infrastructure as
part of its Comprehensive Spending Review and the recently released National
Infrastructure Plan. None of the Group's current or proposed investments have
been adversely impacted by the Spending Review.
Furthermore, the Company continues to be in receipt of proposals from third
parties seeking to dispose of assets meeting the Company's investment criteria.
A number of these are under detailed examination by Amber. The Company pursues a
very disciplined approach to analysis of these opportunities and to the extent
that these materialise, they can be anticipated to be accretive to the Company's
cashflows and projected returns.
New Investments in the Period
The Group has made two investments in the period. These were both investments in
the National Health Service Local Improvement Finance Trust (NHS LIFT)
initiative, where the Group has already made a series of significant
investments. NHS LIFT is a long-standing initiative to deliver improved
accommodation for community and primary healthcare across 42 areas of England.
These additional investments are further examples of how the Group continues to
expand the portfolio.
The first investment is in relation to a 1,883m2 health and well-being centre in
Newby Place in East London. The Project includes the design, build, finance and
operation of the centre which is expected to take less than 18 months to build,
followed by a 25 year operational period.
The second investment is in Nightingale Lane, East London, and includes the
design, build, finance and operation of a 946m2 accommodation complex from which
the Primary Care Trust (PCT) and occupying GP Practice will deliver a wide range
of primary care services. It is expected to take 12 months to build, followed by
a 25 year operational period.
Both projects are expected to be accretive for investors in both NAV and yield
terms.
Interim Distribution
On 15 October 2010, an interim dividend of 2.85 pence per share was paid to
shareholders on the register as at 3 September 2010. This was for the period 1
January 2010 to 30 June 2010 and is a 2.7% increase on the distribution paid in
the previous corresponding period.
In line with the Scrip Dividend Alternative Circular that was issued in
September, a number of shareholders elected to take script in the Company, in
lieu of cash, that resulted in an additional 1,622,132 shares being issued.
The Board intends to issue an announcement before year end outlining the 2011
distribution which is expected to be an increase on 2010. The Board confirms
that it expects to increase distributions in future years at least in line with
its inflation forecast of 2.5% pa.
Capital Raising
The Company successfully issued 20 million new shares and raised over GBP22.3
million through utilisation of its tap facility in the first half of September.
The average price paid for the shares was 111.9 pence (a 1.8p premium in excess
of NAV at 30 June 2010 adjusted for the distribution paid on 15 September).
These proceeds have been fully allocated to existing opportunities where INPP or
Amber has exclusivity.
Share Capital
As a result of the shares issued under the tap facility and under the Scrip
Dividend Alternative the Company had 479,040,303 shares on issue as at 12
November 2010.
Cash on Balance Sheet
The Company has approximately GBP55 million cash available as at 16 November
2010. It is expected that this will be used to finance new opportunities and pay
distributions to investors.
Portfolio
As at 16 November 2010, the portfolio comprised economic interests in 55
projects with a geographical split as detailed below:
+-----------+----------+------------------+----------+----------+
| Location | Number | Sector | 16 | 30 June |
| | of | |November | 2009 |
| |projects | | 2010 | % 1 |
| | | | %1 | |
+-----------+----------+------------------+----------+----------+
| United | 40 | Health | 52 | 52 |
| Kingdom | | Govt | | |
| | | accommodation | | |
| | | Courts | | |
| | | Police Authority | | |
| | | Education | | |
| | | | | |
+-----------+----------+------------------+----------+----------+
| Australia | 7 | Health | 15 | 15 |
| | | Roads/Tunnels | | |
| | | Health/Custodial | | |
| | | Entertainment | | |
| | | | | |
+-----------+----------+------------------+----------+----------+
| Canada | 2 | Education | 8 | 8 |
| | | Courts | | |
| | | | | |
+-----------+----------+------------------+----------+----------+
| Belgium | 1 | Transport | 12 | 11 |
| | | | | |
+-----------+----------+------------------+----------+----------+
| Germany | 2 | Transport | 8 | 8 |
| | | Education | | |
| | | | | |
+-----------+----------+------------------+----------+----------+
| Ireland | 1 | Courts | 4 | 5 |
| | | | | |
+-----------+----------+------------------+----------+----------+
| France | 1 | Health | <1 | <1 |
| | | | | |
+-----------+----------+------------------+----------+----------+
| Italy | 1 | Health | <1 | <1 |
| | | | | |
+-----------+----------+------------------+----------+----------+
1. This breakdown is based on the fair value market valuation of the Group's
investments calculated utilising discounted cash flow methodology, adjusted for
European Private Equity and Venture Capital Association (EVCA) guidelines.
Top Ten Investments
The Top Ten Investments of the Company as at 16 November 2010 were:
+--------------------+-------+
| Investment | % |
+--------------------+-------+
| Diabolo Project | 12.4 |
+--------------------+-------+
| Royal Children's | 8.4 |
| Hospital, | |
| Victoria, | |
| Australia | |
+--------------------+-------+
| Hereford & | 8.2 |
| Worcester | |
| Magistrates Courts | |
+--------------------+-------+
| BeNEX | 8.1 |
+--------------------+-------+
| Northamptonshire | 7.1 |
| Schools | |
+--------------------+-------+
| Strathclyde Police | 6.4 |
| Training Centre | |
+--------------------+-------+
| Alberta Schools | 5.6 |
+--------------------+-------+
| Dublin Courts, | 4.3 |
| Ireland | |
+--------------------+-------+
| Tower Hamlets | 3.9 |
| Schools | |
+--------------------+-------+
| Orange Hospital, | 3.5 |
| Australia | |
+--------------------+-------+
End
For further information:
Bianca Francis +44
(0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260
1345/1263
Numis Securities
Ed Gascoigne-Pees/Ed Berry +44
(0)20 7269 7132/7297
Financial Dynamics
Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships Limited (INPP) is a listed infrastructure
investment company which invests in global public infrastructure projects
developed under the public private partnerships (PPP) and private finance
initiative (PFI) procurement methods.
Listed in 2006, INPP is a long-term investor in 55 social and transport
infrastructure projects, including schools, hospitals, courts, police
headquarters and transport projects in the U.K., Europe, Australia and Canada.
INPP seeks to provide its shareholders with both a long-term government-backed
yield and capital growth through investment across both construction and
operational phases of 25-40 year concessions.
Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and
consists of more than 50 dedicated infrastructure specialists which originate
and source a strong pipeline of projects for INPP.
This interim management statement has been prepared solely to provide additional
information to shareholders as a body to meet the relevant requirements of the
UK Listing Authority's Disclosure and Transparency Rules and the interim
management statement should not be relied on by any other party or for any other
purpose.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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