3i Infrastructure meets growth targets in 2017 year

3i Infrastructure posted its results for the year to 31 March on Thursday, reporting a total return on its opening net asset value of 9.4%, for a net asset value per share of 169p.

The FTSE 250 firm said its total return of £146.3m for the year was consistent with its 8% to 10% return target over the medium term, and claimed a net asset value of £1.74bn at the end of the year, up from £1.28bn a year earlier.

It said it invested or committed a total of £479m during the year, into WIG, TCR, Valorem, Infinis and the Hart van Zuid and A27/A1 public-private partnership projects.

Total income stood at £85.6m for the year, in line with expectations, with another £18.2m of non-cash income received.

Cash balances were £20m, with an undrawn revolving credit facility of £170m at year-end.

That facility was extended to May 2019 during the year, and again to May 2020 since year-end.

The board said the company demonstrated its “flexible funding model” by increasing the size of the facility on a temporary basis during the year.

It had since increased the size of the facility to £370m, providing liquidity for new investments.

3i Infrastructure’s full-year dividend reached 7.55p per share, in line with targets, and representing growth of more than 4% year-on-year.

The board announced a target dividend of 7.85p per share for the 2018 financial year, another 4% increase on 2017.

A total of £385m of new equity was raised from new and existing shareholders during the period, all of which was fully deployed into new investments before year-end.

“The company has had a strong year,” said chairman Richard Laing.

“In a competitive market, we completed six new investments totalling £479m and executed a successful capital raise. We have delivered our target dividend of 7.55 pence per share for the year.”

Phil White, managing partner of infrastructure at 3i Investments, said the firm successfully deployed all of the proceeds from the capital raise, which he believed further enhanced the quality and diversity of the portfolio.

“The new investments, along with the existing portfolio, are performing well, driving growth in NAV and the continued progression of the company's income during the year.

“We continue to see a good flow of new investment opportunities, but we remain disciplined to invest selectively and focused on maintaining a balanced and attractive portfolio for shareholders.”