BBGI posts solid set of interim results

The London-listed firm said that despite a slight decrease in net asset value (NAV) per share to 147.4p, largely due to foreign exchange impacts, it continued to generate stable, inflation-linked cash flows, supporting a 6% increase in its dividend to 8.4p per share for 2024.

It said the dividend was well covered at 1.47x.

BBGI added that it remained financially strong, with a net cash position of £20.6m and no cash drawings on its revolving credit facility.

The company said its disciplined approach to capital management and cost control had kept ongoing charges at 0.9%, despite inflationary pressures.

It did not make any new investments in the first half of 2024, as potential opportunities did not meet its stringent criteria.

However, BBGI said it was well-positioned for future growth, adding that it remained focussed on optimising the value of its existing assets while maintaining strong client relationships, evidenced by a net promoter score of 56.

“The strength and resilience of our core infrastructure portfolio have been successfully demonstrated once again in this reporting period,” said chief executive officer Duncan Ball.

“The predictable cash flows from our existing portfolio provide the necessary headroom for the company to sustain progressive annual dividends for the next 15 years, even without additional investments.

“Stabilising, and potentially reducing interest rates, combined with an ever-increasing demand for infrastructure investments, presents a long-term growth opportunity for BBGI.”

Ball said that as governments worldwide navigated the challenges associated with the high levels of public debt and the growing need for new infrastructure projects and repairing and maintaining ageing infrastructure, specialist investors like BBGI were “well positioned” to play a critical role.

“We will continue to maintain a disciplined and prudent approach to capital allocation and prioritise the most optimal use of cash based on maximum value accretion for all our stakeholders.”

At 1203 BST, shares in BBGI Global Infrastructure were up 0.15% at 135.2p.

Reporting by Josh White for Sharecast.com.