TIDM3IN
RNS Number : 4546N
3i Infrastructure PLC
30 September 2021
30 September 2021
3i Infrastructure plc - Pre-close update
Portfolio performing strongly; on track to meet dividend target,
up 6.6% year-on-year
3i Infrastructure plc ("3i Infrastructure" or the "Company") is
an investment company whose purpose is to invest responsibly in
infrastructure, delivering long-term sustainable returns to
shareholders and having a positive impact on our portfolio
companies and their stakeholders. This statement relates to the
period from 1 April 2021 to 29 September 2021 (the "Period").
Highlights
-- Portfolio performing strongly: Most portfolio companies have
met or exceeded the expectations we set at March 2021.
-- Sale of Oystercatcher's four European terminals: Sale
announced at an attractive uplift to carrying value, increasing
Oystercatcher's unrealised money multiple to 2.8x and unrealised
IRR to 13.5% over the Company's 14 year investment period.
-- DNS:NET investment: On 10 June 2021, 3i Infrastructure
completed the acquisition of a 60% stake in DNS:NET for EUR182
million.
-- Income as expected in the Period: Total income and non-income
cash was in line with expectations at GBP56 million in the Period.
This compares with GBP48 million of income and non-income cash
received in the same period last year.
-- FY22 dividend target: The Company is on track to deliver its
dividend target for the year ending 31 March 2022 of 10.45 pence
per share, a year-on-year increase of 6.6%.
-- Good level of liquidity: The Company's cash balance was GBP252 million at 29 September 2021.
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, commented: "The
key highlight during the Period was the sale of Oystercatcher's
European terminals at an attractive price. We have also seen strong
performance from the portfolio, which has met our income
expectations. We are progressing several potential investment
opportunities across our target markets and have ample liquidity
available to invest, but pricing in sale processes remains high and
we continue to be patient and disciplined in selecting the best
opportunities to pursue."
Portfolio update
Overall the portfolio has performed well in the Period.
On 23 September 2021, the Company announced an agreement to sell
its 45% stakes in four European liquid storage terminals to Evos
who will also acquire the 55% stakes in the terminals held by
co-shareholder Oiltanking GmbH ("Oiltanking"). Completion is
expected at the end of October 2021. The proceeds from the
transaction will be used to repay debt and related break costs of
3i Infrastructure's holding company, Oystercatcher. The balance of
the proceeds, which is estimated not to exceed c.EUR50 million,
will be distributed to the Company. The sale price achieved implies
an increase in 3i Infrastructure's NAV of c. EUR110 million or
c.10p per share, before any revision to the value of Oiltanking
Singapore Limited.
On 10 June 2021, the Company invested EUR182m to acquire a 60%
stake in DNS:NET and to provide additional funding for the future
growth of the business. DNS:NET is a leading independent
telecommunications provider in Germany growing a fibre-to-the-home
network in Berlin and surrounding areas.
At Infinis and Attero, strong operational and financial
performance in the Period was partially offset by lower
expectations for future power prices and, for Attero, for future
gate fees for incoming waste reflecting softer recent market
conditions.
ESVAGT performed ahead of expectations in the Period as the oil
price recovered to above pre-pandemic levels, benefiting its
operations in the emergency rescue and response market. ESVAGT also
took delivery of the second and third of three vessels to serve
Vestas in maintaining offshore wind farms in the North Sea.
Ionisos's performance exceeded expectations in the Period driven
by increasing end customer demand in the surgery, pharmaceutical
and testing segments. This strong performance more than offset the
effects of the closure of the Italian operations, as previously
reported.
TCR outperformed our expectations even though the recovery in
air traffic has been slower than anticipated, thanks to continued
strong cost discipline and focus on cash management, while also
seeing continued heightened interest for future growth from
existing and new customers.
The performance of Joulz's infrastructure services and metering
businesses was in line with expectations and we saw continued
healthy growth in the order book. Joulz did experience some delays
in completing new projects in infrastructure services and in its
solar rooftop business, acquired earlier in the year, but these
delays are expected to reduce over the second half.
Tampnet performed broadly in line with expectations and has
appointed a new CEO, Elie Hanna who joined on 1 September 2021 from
Ericsson. Elie is a Canadian citizen and holds a BEng in
Telecommunications and an EMBA. We believe he will drive forward
Tampnet in helping its customers in their digitalisation journey,
increasing efficiency and identifying new revenue streams.
We also saw good performance from Valorem and the projects
portfolio, while there was completion of a further divestment from
the India Fund at an uplift to carrying value.
Portfolio returns
The portfolio is delivering a good level of income. Total income
and non-income cash was GBP56 million in the Period, comprising
income of GBP56 million and non-income cash of less than GBP1
million. This compares with GBP46 million of income and GBP2
million of non-income cash received in the same period last
year.
As usual, an important element of the determination of the
Company's results for the half-year to 30 September 2021 will be
the valuation exercise carried out on the investment portfolio at
that date.
Balance sheet
At 29 September 2021, the Company's cash balance was GBP252
million. The full revolving credit facility of GBP300 million
remains undrawn and is available to fund new investments.
GBP109 million of deferred proceeds (including accrued interest
to date) from the sale of WIG in 2019 is due to be received in
December 2021.
Ends
For information, please contact:
Thomas Fodor Shareholder enquiries +44 20 7975 3469
Kathryn van der
Kroft Media enquiries +44 20 7975 3021
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About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, an approved UK Investment Trust, listed on the
London Stock Exchange and regulated by the Jersey Financial
Services Commission. The Company's purpose is to invest responsibly
in infrastructure, delivering long-term sustainable returns to
shareholders and having a positive impact on our portfolio
companies and stakeholders.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and is the investment manager of 3i Infrastructure
plc.
This press release is not for distribution (directly or
indirectly) in or to the United States, Canada, Australia or Japan
and is not an offer of securities for sale in or into the United
States, Canada, Australia or Japan. Securities may not be offered
or sold in the United States absent registration under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), or an
exemption from registration under the Securities Act. Any public
offering to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer or selling security
holder and will contain detailed information about 3i Group plc, 3i
Infrastructure plc, 3i India Infrastructure Fund and management, as
applicable, as well as financial statements. No public offering in
the United States is currently contemplated.
This statement aims to give an indication of material events and
transactions that have taken place in the period from 1 April 2021
to 29 September 2021 and their impact on the financial position of
3i Infrastructure plc. These indications reflect the Board's
current view. They are subject to a number of risks and
uncertainties and could change. Factors which could cause or
contribute to such differences include, but are not limited to,
general economic and market conditions and specific factors
affecting the financial prospects or performance of individual
investments within the portfolio of 3i Infrastructure plc.
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END
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