3i Infrastructure on track after robust first half

7th Nov 2023 10:07

(Sharecast News) - 3i Infrastructure reported a robust performance in its first-half report on Tuesday, exceeding its target return of 8% to 10% per annum.

The FTSE 250 company said it achieved a total return of £191m, slightly lower than the prior year's figure of £247m.

Its total return on opening net asset value stood at 6.3%, slightly down from 9.3% in the same period last year.

However, the net asset value itself increased to £3.24bn compared to the figure of £3.1bn recorded on 31 March.

Additionally, the net asset value per share also showed a positive trend, rising to 351.4p from 336.2p at the end of March.

The firm also reported a strong level of income and non-income cash, amounting to £104m.

Furthermore, 3i Infrastructure said it remained on track to meet its 2024 dividend target of 11.9p per share, representing a 6.7% increase from the prior year's distribution.

That increase was expected to be fully covered by net income, providing confidence to investors.

Regarding specific transactions, 3i Infrastructure achieved a significant value uplift through the sale of Attero, realising a 31% increase based on the agreed euro-denominated sales proceeds compared to the March valuation.

Corporate governance also saw changes, with the annual general meeting on 6 July approving all resolutions, including the reelection of existing directors.

There were some changes to the board's composition, including the appointment of Martin Magee as a non-executive director and Stephanie Hazell taking on the role of senior independent director.

"The portfolio continues to outperform with strong value growth in real terms, driven by our largest assets," said chair Richard Laing.

"We are on track to deliver our 2024 dividend target, which is a 6.7% increase on last year's dividend."

At 0959 GMT, shares in 3i Infrastructure were up 0.41% at 309.25p.

Reporting by Josh White for Sharecast.com.