Solid performance reported at 3i Infrastructure

Long-term infrastructure asset investor 3i Infrastructure updated the market on its performance for the period from 1 October to 31 December on Wednesday - a period in which two divestments were announced, generating estimated gross proceeds of £1.12bn.

The FTSE 250 company sold its stake in Elenia for estimated gross proceeds of £725m, with the sale of its stake in Anglian Water Group bringing in estimated gross proceeds of £395m.

Three investments were announced during the period - £187m to acquire a majority position in Wireless Infrastructure Group, £21m in ESVAGT to provide funding for growth in the offshore wind service business, and £12m in Infinis to fund organic growth.

Adjusting for the estimated proceeds from the two divestments, the pro-forma September net asset value of the company was estimated to have increased 15% to 199p per share.

The portfolio overall continued to perform broadly in line with expectations, the 3i board claimed, adding that it was delivering “strong” income growth.

Total portfolio income and non-income cash reached £43.4m in the period.

The company said it expected to return surplus cash of between £400m and £450m to shareholders following the receipt of proceeds from the sale of its holdings in Anglian Water Group and Elenia.

3i Infrastructure said it was on track to deliver its target dividend of 7.85p per share for the 2018 financial year, with the full-year dividend expected to be fully covered.

“The board is delighted with the performance of the company over the period,” said chairman Richard Laing.

“The realisations achieved by the investment adviser have generated exceptional value for shareholders.”

Phil White, managing partner and head of infrastructure at the company’s investment adviser 3i Investments, added that the outcomes achieved on the two sale processes had delivered “outstanding” returns.

“The additional investment in WIG is further demonstration of the investment opportunity within the portfolio.

“We continue to develop our pipeline across the company's target markets and we see good prospects for future investments in the coming months,” White added.