TIDMINPP
RNS Number : 1665R
International Public Partnership Ld
15 November 2012
International Public Partnerships Limited
Interim Management Statement
For the period 1 July 2012 to 14 November 2012
15 November 2012
International Public Partnerships Limited ("INPP", "the
Company"), a listed infrastructure investment company which invests
in global public infrastructure projects including those developed
under public private partnership ("PPP"), private finance
initiative ("PFI"), regulated asset and similar procurement
methods, today issues the following Interim Management Statement
for the period 1 July 2012 to 14 November 2012.
Highlights
-- The portfolio of 122 public infrastructure investments
continues to perform in line with expectations
-- In the period covered by this IMS, the Company announced 2012
Interim Results for period to 30 June 2012 reporting a solid
increase in Net Asset Value ("NAV") per share to 118.4 pence (31
December 2011: 116.9 pence per share)
-- A half year 2012 dividend of 3.0 pence per share was paid on
19 October with a full year 2012 target dividend of 6.0 pence per
share (up 2.6% from full year 2011)
-- The Company deployed GBP166 million of the GBP200 million
capital raised from investors in June 2012, most notably through
new investments in the offshore electricity transmission (OFTO)
project at Ormonde and further investments in Building Schools for
the Future education projects
-- Total Shareholder Return (comprising share price growth and
aggregate dividends) since IPO in November 2006 to 14 November 2012
amounts to 66.5%(1)
-- Announced the appointment of Claire Whittet to the INPP Board
with effect from 10 September 2012. Claire brings significant
experience in the finance sector, particularly within credit
markets, together with knowledge of corporate governance and
regulation
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 each year. In
addition, the Company provides quarterly NAV guidance predominantly
based on changes in risk free rate movements in the countries where
INPP holds investments and changes to foreign exchange rates. This
quarterly guidance does not reflect any changes (positive or
negative) in NAV arising from matters specific to individual
investments (eg -changes in asset specific risks, timing
implications of delayed or accelerated cashflows, changes to
cashflow projections and assumptions, indexation adjustments due to
changes in inflation etc). Such matters are reflected in the half
year directors' valuations published with the Company's full and
interim results.
Since 30 June 2012 (NAV: 118.4 pence per share), risk free rates
have decreased in all of the countries in which INPP is invested.
The reduction in these rates could, other things being equal, be
expected to have a positive effect on the Company's NAV.
Over the same period, foreign exchange ("FX") movements have
seen GBP strengthening against the three currencies the Company has
exposure to. The strengthening GBP could, other things being equal,
be expected to have a negative effect on the Company's NAV.
Overall, the negative effects of FX movements on NAV would be
outweighed by the positive effects of falling risk free rates.
Based on these two macroeconomic updates alone (other things being
equal) the NAV could be expected to have increased slightly since
30 June 2012.
In the course of its normal practice the Company also reviews
market based evidence in its assessment of NAV. Since 30 June 2012,
the Company has seen some evidence from market intelligence and its
own experience of bidding in the secondary market for such assets
that values of infrastructure assets comparable to some of those
owned by the Company have increased in line with the cumulative net
effect of such macroeconomic factors over recent periods.
Distribution
On 30 August 2012, the 2012 first half year distribution of 3.0
pence per share was declared for shareholders on the register as at
14 September 2012. This distribution was for the period 1 January
2012 to 30 June 2012 and was a 2.6% increase on the distribution
paid in the previous corresponding period.
The Scrip Dividend Alternative Circular applicable to that
dividend was available to investors and the associated scrip
allotment or dividend payment was made on 19 October 2012.
Approximately 18% of investors chose to receive the recent dividend
as Scrip.
The Board also confirms that the target distribution from income
received in the year 1 January 2012 to 31 December 2012 of 6.0
pence per share, which represents a 2.6% increase over the previous
year and a fifth consecutive annual increase. The Board confirms
that it expects to increase distributions in future years at least
in line with its current long term inflation assumption of 2.5% per
annum.(2)
Balance Sheet and Funding
The Company had approximately GBP24.2 million of cash available
for the payment of distributions and working capital as at 14
November 2012. In addition, the Company has GBP100 million of net
capacity within its corporate debt facility available for re-draw
by the Company, representing 100% of the facility.
Portfolio
The Company's portfolio of assets continued to perform in line
with expectations and with high levels of satisfaction from public
sector clients.
Highlights during the period include:
-- Completion of the GBP115.1 million acquisition of the Ormonde
offshore energy transmission project
-- Completion of an additional GBP20.7 million of investment in
7 Building Schools for the Future projects
Following the completion of these acquisitions approximately
GBP166 million of the GBP200 million capital raised in June of this
year has been deployed.
Good progress was also made on the c.10% of assets in the
portfolio that are currently under construction. Valuation benefits
from successful completion of construction of these projects are
expected to come through once sustained operational performance is
demonstrated. All construction within the portfolio is currently
due to be completed by December 2014.
As at 14 November 2012, the portfolio comprised economic
interests in 122 projects with a geographical split as detailed
below:
Location Number Sectors represented 14 November 30 June 2012
of projects 2012
%(a) % (a)
---------------- ------------- ----------------------- ------------ -------------
Health
Govt accommodation
Courts
Police Authority
Education
United Kingdom 107 Offshore Transmission 62 54
---------------- ------------- ----------------------- ------------ -------------
Health
Roads/Tunnels
Health/Custodial
Australia 7 Entertainment 14 18
---------------- ------------- ----------------------- ------------ -------------
Belgium 1 Transport 11 14
---------------- ------------- ----------------------- ------------ -------------
Education
Canada 2 Courts 5 6
---------------- ------------- ----------------------- ------------ -------------
Transport
Germany 2 Education 4 5
---------------- ------------- ----------------------- ------------ -------------
Ireland 1 Courts 2 3
---------------- ------------- ----------------------- ------------ -------------
France 1 Health <1 <1
---------------- ------------- ----------------------- ------------ -------------
Italy 1 Health <1 <1
---------------- ------------- ----------------------- ------------ -------------
a. 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 14 November 2012
were:
Investment %
-------------------------------------- -----
Ormonde offshore energy transmission
project 15.0
-------------------------------------- -----
Diabolo Project 11.3
-------------------------------------- -----
Royal Children's Hospital 6.2
-------------------------------------- -----
Hereford & Worcester Magistrates
Courts 4.6
-------------------------------------- -----
BeNEX 4.3
-------------------------------------- -----
Strathclyde Police Training Centre 3.6
-------------------------------------- -----
Northamptonshire Schools 3.5
-------------------------------------- -----
Alberta Schools 3.4
-------------------------------------- -----
Orange Hospital 2.9
-------------------------------------- -----
Angel Trains 2.3
-------------------------------------- -----
Outlook and Pipeline
The market for infrastructure continues to receive high levels
of interest from investors as they recognise the benefits of the
asset class. Specifically the nature of the contracted or regulated
revenues in which INPP predominantly invests is attractive to
retail and institutional investors alike.
There continues to be good performance in the Company's
portfolio of existing assets and work continues on delivering the
remaining projects under construction on time and to budget.
Overall there also continues to be a good pipeline of investment
opportunities for INPP. The Company is encouraged by governments'
reaffirmation of the importance of private sector involvement in
the provision of such assets. This includes, in the UK, through the
National Infrastructure Plan and recently announced incentives and
support for infrastructure projects, the likelihood of greater
investor interest in the sector, bolstered by initiatives to
involve UK pension funds in the provision of financing to
infrastructure schemes.
There are also a number opportunities in Australia and Europe,
focused on the regulated asset, transmission, education,
transportation and health sectors which, through the Investment
Advisor, the Company is also actively pursuing. The Company
continues to receive and review proposals from third parties
seeking to dispose of assets meeting the Company's strict
investment criteria.
There continues to be a limited number of new start "greenfield"
project opportunities in the UK and other markets which limits the
opportunity to invest in new construction phase assets.
Nevertheless the nature and number of current opportunities with
respect to operational assets (eg OFTO's and other similar utility
and public infrastructure assets) in the Company's view makes up
for this. As a result however the Company expects that the
proportion of the portfolio in construction will remain lower in
the short to medium term than in prior periods.
More detail is provided on opportunities in the Group's recently
published 2012 Interim Report.
Overall, the Company continues to remain positive about its
prospects for the remainder of 2012 and into 2013.
End
1 Bloomberg
2 Provided for guidance only. This is a target and not a profit
forecast. There can be no guarantee that any distribution will be
paid.
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263
Numis Securities
Ed Berry/Harry Stein +44 (0)20 7269 7297/7141
FTI Consulting
About International Public Partnerships (INPP):
International Public Partnerships (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP), private finance initiative (PFI), regulated
asset and other similar procurement methods.
Listed in 2006, INPP is a long-term investor in 122 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters, transport and utility and transmission
projects in the U.K., Europe, Australia and Canada. INPP seeks to
provide its shareholders with both a long-term 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 80 dedicated staff who manage,
advise on and originate projects for INPP.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
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. It
does not constitute an invitation to subscribe for or otherwise
acquire or dispose of securities in the Company (defined below) in
any jurisdiction. The information contained in this interim
management statement about the Issue is subject to updating and
amendment, and does not purport to be full or complete. No reliance
may be placed for any purpose on the information contained in this
interim management statement in connection with the Issue or the
purchase of securities in the Company. This interim management
statement does not constitute or form part of any offer to issue or
sell, or any solicitation of any offer to subscribe or purchase,
any investments nor shall it (or the fact of its distribution) form
the basis of, or be relied on in connection with, any contract or
commitment whatsoever. Any decision to purchase shares should be
made solely on the basis of the information contained in the final
prospectus issued by the Company.
The potential acquisition by the Company of any of the
investments referred to in this interim management statement is
subject, among other things, to those projects reaching legal
completion and to the Company having conducted satisfactory due
diligence in relation to such investments. Although the Company has
a right of first refusal for investments disposed of by the Amber
group, any acquisitions will be subject to agreement having been
reached between the Company and the relevant counterparty as to the
terms of the acquisitions. In addition, some of the investment
opportunities are those where Amber or the Company is currently
undergoing a bidding process. There is no guarantee that they will
be successful in any such bidding process. There is therefore no
guarantee that any of the investments will be acquired and if they
are on what terms.
Forward-looking statements are not guarantees of future
performance. The Company's actual investment performance, results
of operations, financial condition, liquidity, distribution policy
and the development of its financing strategies may differ
materially from the impression created by the forward-looking
statements contained in this document. Subject to their legal and
regulatory obligations, International Public Partnerships and its
Investment Advisor expressly disclaim any obligations to update or
revise any forward-looking statement contained herein to reflect
any change in expectations with regard thereto or any change in
events, conditions or circumstances on which any statement is
based.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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