HICL Infrastructure sees FY profit rise, proposes raising £205m

Shares in HICL Infrastructure are down more than 1% as it detailed a proposal to raise £205m to address its net funding requirement, and separately posted an improved set of full-year results.

"HICL has delivered another good set of results this year, underpinned by a portfolio performance that has exceeded expectations," said chairman Ian Russell, further noting a total shareholder return of 10.3% in the year.

The company's income rose to £207.6m, up from £182.9m. Pre-tax profit was £177.1m, from £157.4m. Total dividend was 7.65p a share, from 7.45p. HICL's net asset value per share at 31 March was 149p, from 142.2p a year earlier.

Meanwhile, HICL today proposed raising £205m through an issue of ordinary shares via tap issuance.

"The net proceeds of the issue will be applied in addressing the company's net funding requirement, which currently stands at approximately £205 million," it said.

"Given the pipeline of investment opportunities currently being considered by the investment adviser, as a result of which the company may soon have additional funding requirements, the directors will give consideration to increasing the size of the Issue in the event of material excess demand for new ordinary shares.

"At present, the company has the ability to issue up to 162,246,567 New Ordinary Shares by way of tap issuance, allowing it to raise a maximum of approximately £260m."

At 10:52 BST, shares in HICL were down 1.32% to 172.1p each.