International Public Partnerships (INPP), a FTSE 250-listed infrastructure investment company, released its half-year results for the six months ended June 30, 2024. The company reported a Net Asset Value (NAV) of £2.8 billion, a decrease from £2.9 billion in the previous period, attributed to an increase in the discount rates used to value its investments. IFRS profit before tax was £16.7 million for the same period.
INPP maintained its focus on shareholder returns, reconfirming its 2024 target dividend and declaring an interim dividend of 4.18 pence per share. The company also announced its intention to increase the frequency of dividend payments to quarterly, starting in 2025. INPP highlighted its total shareholder return of 197.2% since its IPO, equivalent to an annualized TSR of 6.4%.
The companys capital allocation strategy is guided by three principles: prudent use of its Corporate Debt Facility (CDF), targeted divestments to demonstrate value and reallocate capital, and allocation of divestment proceeds towards share buyback and accretive investments. INPP fully repaid its CDF drawings and reduced the facility from £350 million to £250 million, demonstrating disciplined cost management while maintaining investment flexibility.
During the period, INPP made investments totaling over £85 million in energy transmission, social infrastructure, and digital sectors, funded by recent realizations. The company also provided an update on its portfolio performance and asset stewardship, highlighting its investments in energy transmission, gas distribution, waste water, transport, and digital infrastructure.
Looking ahead, INPPs board remains confident in its strategy to deliver consistent shareholder returns, even without making further investments. The company expects to meet its progressive dividend policy for at least the next 20 years. The outlook for infrastructure remains strong, and INPP is well-positioned to capitalize on growth opportunities in the long term.