HICL Infrastructure maintains dividend amid challenging year

(Alliance News) - HICL Infrastructure PLC on Wednesday said it is maintaining its annual dividend ...

Alliance News 22 May, 2024 | 10:07AM
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(Alliance News) - HICL Infrastructure PLC on Wednesday said it is maintaining its annual dividend despite facing a challenging environment.

In the year ended March 31, the London-based closed-ended investment company reported that income fell to GBP105.4 million from GBP254.2 million a year earlier. Pretax profit plummeted to GBP30.6 million from GBP198.5 million.

Earnings per share dropped to 1.5 pence form 9.9p. Net asset value per share fell to 158.2p from 164.9p.

However, HICL left its dividend unchanged at 8.25p.

The company said it plans to pay out a dividend of 8.25p in financial 2025 and 8.35p the following year.

Looking ahead, HICL said: "The outlook for the company is positive and the portfolio continues to perform well in a challenging macroeconomic environment. Active management during the year has provided HICL with the financial strength and flexibility to continue to execute its strategy and deliver an attractive investment proposition for HICL shareholders over the long-term."

Separately on Wednesday, HICL said it will launch its share buyback programme, which was first announced in February.

At the time, the company said it had entered an agreement to sell its entire stake in the US Northwest Parkway toll-road project to Vinci Highways SAS for about USD232 million. The proceeds represent a 30% premium to the company's valuation at the end of September.

HICL said that up to GBP50 million of the sale proceeds will be used to fund a share buyback programme, with the remainder allocated to the drawn balance on its GBP650 million revolving credit facility.

Shares in the company were up 0.5% to 124.00 pence each in London on Wednesday morning.

By Sophie Rose, Alliance News senior reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
HICL Infrastructure PLC Ord 125.60 GBX 1.78 -

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