HICL Infrastructure posts stronger annual performance
By Josh White
Date: Wednesday 27 May 2026
(Sharecast News) - HICL Infrastructure reported a stronger annual performance on Wednesday, with net asset value growth supported by portfolio disposals, operational outperformance and active capital allocation.
The FTSE 250 infrastructure investment company said NAV per share rose to 160.2p at 31 March, from 153.1p a year earlier, delivering a total NAV return of 10.3%.
Earnings per share increased to 13.8p from 2.3p.
On an investment basis, income rose to £323.9m from £97.1m, while total return increased to £266.6m from £46.0m.
HICL said its underlying portfolio delivered a 12.2% return, significantly ahead of expectations, supported by outperformance from growth assets and active asset management.
Growth assets delivered 9% year-on-year EBITDA growth.
The company declared dividends of 8.35p per share for the year, fully supported by portfolio cash generation.
Dividend cash cover was 2.38 times including disposals and 1.10 times excluding disposals, compared with 1.56 times and 1.07 times respectively a year earlier.
HICL reiterated its dividend target of 8.50p per share for the 2027 financial year and introduced new guidance of 8.65p for 2028, citing strong cash flow visibility and confidence in the long-term earnings profile of the portfolio.
Disposals totalled £536m during the year, materially exceeding the company's target.
The sales included a £225m disposal of seven UK PPP assets and the £311m sale of HICL's stake in the A63 Motorway in France, which was completed at a 21% premium to carrying value.
The company said it had realised more than £1bn from disposals over the past three years at an average premium to carrying value of 11%.
HICL also completed £103m of share buybacks during the year and a further £25m after the year end.
The company said the buybacks, alongside selective reinvestment, supported NAV accretion and portfolio optimisation.
The group ended the year with a strong liquidity position, including £87.7m of cash, £333.3m of disposal proceeds and an undrawn revolving credit facility.
HICL said it had agreed improved management terms, subject to finalisation of contractual arrangements, moving to a fee basis calculated entirely by reference to market capitalisation and reducing the notice period to two years.
The company said the changes would improve alignment with shareholders and reduce costs, with a pro forma operating expense ratio of 0.90%.
The board also said it would propose a biennial continuation vote from the 2028 annual general meeting, to be triggered if HICL's shares trade at an average discount to NAV per share of more than 10% over the preceding financial year.
Chair Mike Bane said HICL had delivered a strong financial performance, driven by disciplined capital allocation, accretive portfolio rotation and operational outperformance.
"The realisation of £536m of disposals highlights the quality of the portfolio and has strengthened the company's capital flexibility," he said.
Bane said the revised management terms and proposed continuation vote would further strengthen alignment and accountability to shareholders.
InfraRed Capital Partners, HICL's investment manager, said the portfolio benefited from strong performance at growth assets including Affinity Water and Fortysouth.
Affinity resumed shareholder distributions during the year, while Fortysouth saw EBITDA growth ahead of valuation assumptions.
Looking ahead, HICL said it entered the 2027 financial year with a robust balance sheet, strong inflation-linked cash generation and portfolio companies that continued to perform well.
The company said the wider environment for core infrastructure remained supportive, underpinned by energy transition, energy security, demographic shifts and rising demand for data infrastructure, although geopolitical tensions were expected to contribute to continued market volatility.
At 0900 BST, shares in HICL Infrastructure were up 1.77% at 131.07p.
Reporting by Josh White for Sharecast.com.
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