HICL Infrastructure H1 NAV better than expected

19th Nov 2014 09:04

HICL Infrastructure impressed with better-than-expected growth in net asset value (NAV) and successful investments during the first half of the year.The company enjoyed a strong cash flow from investments and a 6% rise in NAV per share to 130.5p. Forecasts expected the NAV to increase to 128p.Income rose from £79m to £138.1m, while profit before tax increased from £71.4m to £132m. Earnings per share rose to 10.7p from 6.2p.The positive results contributed to a 9% return to shareholders during the period. HICL secured three new investments and three incremental stakes for £63.7m.However, cash and equivalents declined from £42.7m to £26.9m.Director Tony Roper said: "We are currently seeing a good pipeline of new opportunities in the UK, and internationally, and whilst broader by sector, geography and stage of investment, the opportunities we are evaluating fit the company's stated investment objectives."Even with the increased competition in the UK, we still expect to acquire further suitable investments for the group in the secondary market."The company revealed its dividends of 3.2p and said to be on track to achieve the 7.25p per share dividend for the full year.Oriel analysts commented: "HICL has built up a good track record and we do like the relatively low level of project specific risk in the portfolio, with the largest ten investments accounting for 40% of NAV."Shares were up 1.46% to 151.38p at 10:21 on Wednesday.