**Summary**
HICL Infrastructure PLC reported strong annual results for the year ended March 31, 2026, with a total NAV return of 10.3%, driven by accretive portfolio rotation, operational outperformance, and disciplined capital allocation. Key highlights include
**NAV per share** increased to 160.2p, up from 153.1p in 2025.
**Portfolio performance** was robust, with a 12.2% return, significantly ahead of expectations, supported by growth assets and active management.
**Dividends** of 8.35p per share were fully supported by portfolio cash generation, with dividend cover of 2.38x including disposals.
**Disposals** totaled ยฃ536m, exceeding targets and demonstrating portfolio resilience, with over ยฃ1bn realized in the past three years at an average 11% premium to carrying value.
**FY27 and FY28 dividend targets** were reiterated at 8.50p and set at 8.65p, respectively, reflecting strong cash flow visibility.
**Capital allocation** included ยฃ103m in share buybacks and selective reinvestments, supporting NAV accretion.
**Liquidity position** remained strong, with ยฃ87.7m in cash, ยฃ333.3m in disposal proceeds, and an undrawn RCF.
**Management terms** were improved, aligning fees with market capitalization and reducing costs to a proforma OER of 0.90%.
**Governance enhancements** included a proposed biennial continuation vote and ongoing board succession planning.
Operationally, growth assets like Affinity Water and Fortysouth delivered strong EBITDA growth, while PPP assets provided stable cash generation. The company emphasized proactive capital allocation, active asset management, and a focus on long-term value creation. Despite macroeconomic uncertainties, HICL remains well-positioned to benefit from the global infrastructure supercycle, supported by its diversified portfolio, strong liquidity, and disciplined strategy.
### Key Observations:
1. **Income and Total Return**: Significant increases in both income and total return, driven by strong portfolio performance and disposals. 2. **Earnings per Share**: Substantial growth in earnings per share, reflecting improved operational performance and asset management. 3. **Dividend per Share**: Modest increase in dividends, fully supported by portfolio cash generation. 4. **NAV per Share**: Moderate increase in NAV per share, driven by accretive portfolio rotation and operational outperformance. 5. **Debt**: The Revolving Credit Facility (RCF) was fully repaid, and the facility is now undrawn, reflecting improved liquidity and financial flexibility.