HICL Infrastructure (HICL) H2 2024 earnings summary

Executive summary

• Resilient underlying portfolio return of 9.0%, before changes in reference discount rates or macroeconomic assumptions and after accretive M&A; NAV per share ended FY24 at 158.2p.

• £509m of disposals and £227m of acquisitions supported portfolio rotation, with dividend growth targeted to resume from FY26.

Financial highlights

• FY24 total income was £105.4m vs £254.2m in FY23; total return was £30.5m vs £198.4m, and EPS was 1.5p vs 9.9p.

• NAV per share was 158.2p at 31 March 2024 vs 164.9p a year earlier; underlying portfolio return was 9.0% vs 10.2%.

• Investment fair value was £3,268.9m; Directors’ Valuation including £64.5m of investment commitments was £3,333.4m.

Outlook and guidance

• FY26 dividend guidance is 8.35p/share, with dividend growth targeted to resume from 2026; both are targets, not profit forecasts.

• Forecast cash dividend cover reaches 1.10x, supporting sustainable growth; FY24 M&A is expected to add c.£20m cash over five years.

• Potential distributions resuming from assets during FY26 could add 0.1p/share to cash flow.

• Investment outlook emphasizes selective opportunities in data infrastructure, fibre, towers, water, transmission and district heating.