Share Search
Visit the Share Search
3i Infrastructure 'on track' to hit dividend targets
30th Sep 2020 13:03
(Sharecast News) - 3i Infrastructure said it was on course to meet its full-year dividend target following a strong performance across its portfolio, despite the impact of Covid-19.
Updating on trading in the six months to 29 September, the investment firm said total portfolio income and non-income cash was £47m, down on last year's figure of £57m but slightly ahead of expectations.
As a result, the closed-end investment company said it was on track to meet its dividend target for the year to 31 March 2021 of 9.8p per share, a 6.5% increase year-on-year.
3i Infrastructure said: "The portfolio continues to demonstrate its resilience to the effects of Covid-19.
"Most portfolio companies have met or exceeded the expectations we set at the start of the period, although lower power price forecasts, ongoing effects of the pandemic and the slow recovery in air travel will affect some portfolio company valuations at the half year end."
Portfolio companies include Tampnet, an operator of offshore fibre communications network; Dutch energy infrastructure firm Joulz; airport infrastructure firm TCR; and French renewables specialist Valorem, among others.
Phil White, managing partner and head of infrastructure at 3i Investments, the investment manager of 3i Infrastructure, said: "We remain cautious about the speed of the recovery in economy activity but we have a portfolio that is continuing to prove resilient and we continue work on a broad range of potential investment opportunities, seeking to invest in businesses that enhance the company's portfolio, taking advantage of our strong financial position.
The company's cash balance as at 29 September was £361m, with a full revolving credit facility of £300m available.
Shares in 3i Infrastructure, which is part of the blue chip 3i private equity group, where trading largely flat by 1300 BST at 289.0p.
Updating on trading in the six months to 29 September, the investment firm said total portfolio income and non-income cash was £47m, down on last year's figure of £57m but slightly ahead of expectations.
As a result, the closed-end investment company said it was on track to meet its dividend target for the year to 31 March 2021 of 9.8p per share, a 6.5% increase year-on-year.
3i Infrastructure said: "The portfolio continues to demonstrate its resilience to the effects of Covid-19.
"Most portfolio companies have met or exceeded the expectations we set at the start of the period, although lower power price forecasts, ongoing effects of the pandemic and the slow recovery in air travel will affect some portfolio company valuations at the half year end."
Portfolio companies include Tampnet, an operator of offshore fibre communications network; Dutch energy infrastructure firm Joulz; airport infrastructure firm TCR; and French renewables specialist Valorem, among others.
Phil White, managing partner and head of infrastructure at 3i Investments, the investment manager of 3i Infrastructure, said: "We remain cautious about the speed of the recovery in economy activity but we have a portfolio that is continuing to prove resilient and we continue work on a broad range of potential investment opportunities, seeking to invest in businesses that enhance the company's portfolio, taking advantage of our strong financial position.
The company's cash balance as at 29 September was £361m, with a full revolving credit facility of £300m available.
Shares in 3i Infrastructure, which is part of the blue chip 3i private equity group, where trading largely flat by 1300 BST at 289.0p.