- International Public Partnerships Ltd.
- 26 March 2026 09:48:26
Source: Sharecast
Net asset value per share rose 4.7% to 151.5p as at 31 December, up from 144.7p a year earlier, contributing to a NAV total return of 10.6%.
The FTSE 250 company said NAV increased 1.1% to £2.7bn, with growth supported by strong asset performance, gains on disposals and favourable foreign exchange and macroeconomic movements, partly offset by £156.3m of dividends and £77m of share buybacks.
IFRS profit before tax jumped to £263.9m from £0.5m in 2024, reflecting unrealised fair value gains across the portfolio.
“I am pleased to report a strong and resilient set of results for 2025, with the portfolio offering a projected net return of 10.3% and progressive dividend growth,” said chair Mike Gerrard.
He added that the company’s disciplined capital allocation had delivered “significant value for shareholders, with over £385m of realisations since June 2023 achieved at or above published valuations”.
The company met its full-year dividend target of 8.58p per share, representing around 2.5% growth and extending its record of uninterrupted annual increases since its 2006 listing.
It had shifted to quarterly payments, with three interim dividends already paid and a fourth of 2.15p per share due on 8 June.
The board reaffirmed dividend targets of 8.79p for 2026 and 9.01p for 2027, maintaining a projected annual growth rate of approximately 2.5%, with cash dividend cover steady at 1.1 times.
INPP said its cash flow visibility supported dividend payments for at least the next 25 years, even without further investment, supported by a portfolio in which more than 98% of revenues were backed by long-term secure income streams.
During the year, the company continued to recycle capital, completing or announcing around £130m of disposals in 2025, including partial sales of stakes in Angel Trains and Moray East OFTO at premiums to valuation.
Since mid-2023, total realisations have exceeded £385m, equivalent to around 14% of portfolio value.
Share buybacks were expanded to up to £225m through March 2027, with more than £135m repurchased to date, adding an estimated 1.6p per share to NAV.
New investment activity remained selective, with £47.3m deployed in 2025 including an initial £35m commitment to the Sizewell C nuclear project, part of a total expected equity investment of around £254m.
The group said the project was expected to generate a 6% annual cash yield during construction and early operations and a low-teens internal rate of return.
It was also selected as preferred bidder for the Moray West offshore transmission asset, requiring an estimated £65m investment in the second half of 2026.
Operationally, key assets including Tideway, Cadent and the company’s offshore transmission portfolio continued to perform in line with or ahead of expectations, with high availability and stable cash flows.
The portfolio also benefited from concession wins at BeNEX, driving a 35% increase in valuation for that investment.
Looking ahead, the company said its diversified portfolio of essential infrastructure assets, with inflation-linked revenues and defensive characteristics, remained well positioned despite macroeconomic and geopolitical uncertainty.
Gerrard said the predictability of cash flows “means we can project the ability to pay dividends for the next 25 years,” adding that INPP was “exceptionally well-positioned to deliver long-term value for our shareholders”.
The board confirmed a final interim dividend of 2.15p per share, with an ex-dividend date of 23 April, a record date of 24 April and payment scheduled for 8 June.
At 0927 GMT, shares in International Public Partnerships were down 0.26% at 126.08p.
Reporting by Josh White for Sharecast.com.
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