HICL invests £29m in quarter, remains cautious after referendum

Infrastructure investment firm HICL Infrastructure Company issued its quarterly update statement on Monday, for the period from 1 April to 24 July.

The FTSE 250 entity said it continued to perform well in the period, making three new investments and an incremental investment, with a “good pipeline” of opportunities.

Those investments, totalling £28.7m, were the M1-A1 Link Road (Lofthouse to Bramham) Project, new and incremental investments in the Hinchingbrooke Hospital Project, and the Irish Primary Care Homes Project.

Operational performance remains robust, the board reported, with no material new challenges in the portfolio and with cash generation in line with expectations.

“All four investments in the period fit the company's risk appetite and offer value accretion to the existing portfolio,” said HICL Infrastructure Company chairman Ian Russell.

“We remain focused on sourcing attractive new investments without compromising our clear investment parameters.

Russell said the investment adviser’s team was continuing to prioritise off-market and limited auction situations, for the best opportunities to fund value-accretive investments.

“In light of the outcome of the UK referendum vote, the investment adviser is proceeding cautiously when evaluating potential new investments,” Russell said.

The board reaffirmed its target dividend guidance of 7.65p per share for the current financial year and 7.85p for the financial year ending 31 March 2018.

“In the current economic environment, the Company and its investment proposition remain attractive to investors seeking cash-covered yield in a well-understood asset class,” Russell said.