3i Infrastructure reports resilient first quarter

(Sharecast News) - 3i Infrastructure reported a resilient first-quarter performance for the period ended 30 June on Thursday, with its portfolio companies largely meeting or exceeding expectations despite ongoing market uncertainty. Total income and non-income cash during the period came in at £63m, in line with forecasts.

"We are pleased with the start to our new financial year, with our portfolio companies generally performing in line with or ahead of expectations," said Bernardo Sottomayor, managing partner and head of European infrastructure at 3i Investments, the company's investment manager.

"Whilst the market remains uncertain, our diverse and resilient portfolio continues to offer a combination of defensive characteristics and long-term valuation upside."

Among operational highlights, 3i Infrastructure said FLAG successfully refinanced its debt facilities with improved terms, including reduced margins and the addition of a $100m revolving credit facility to support further fibre network investment.

Infinis appointed Bruce Heppenstall, previously with Drax Group, as its new CEO following the retirement of Shane Pickering.

At TCR, continued outperformance was accompanied by a leadership transition, with deputy CEO Jason Watson stepping up as CEO and Andrew Blincoe, former head of corporate banking at NatWest, joining as CFO.

SRL was said to be performing in line with revised expectations, with new remotely-monitored signal products gaining traction.

However, management remains cautious due to subdued market conditions.

The company reiterated its dividend outlook, with a final 2025 financial year dividend of 6.325p per share to be paid on 11 July.

3i Infrastructure said it remained on track to deliver its 2026 dividend target of 13.45p per share, representing a 6.3% increase year-on-year, fully expected to be covered by net income.

As of 30 June, the company had drawn £343m on its £900m revolving credit facility, with a cash balance of £65m.

The resulting net debt position stood at £278m, set to reduce following the £58m dividend payment pending approval at the company's annual general meeting on 3 July.

At 1010 BST, shares in 3i Infrastructure were up 1.48% at 344.51p.

Reporting by Josh White for Sharecast.com.