International Public Partnerships upbeat on recent performance

(Sharecast News) - International Public Partnerships (INPP) reported strong operational and financial performance across its portfolio for the first half of 2025 in an update on Monday. The FTSE 250 infrastructure investor said it was focused on disciplined capital allocation, expanding its buyback programme and progressing select divestments and reinvestments.

Chair Mike Gerrard said the board was still seeing long-term value in the portfolio, and was confident in the company's fundamentals.

"We remain focused on delivering long-term shareholder value by maintaining a disciplined approach to capital allocation," he said.

"This includes advancing our share buyback programme, targeted realisations that support our published valuations, and reinvesting where we see strong strategic alignment.

"These initiatives reflect the board's confidence ... which we believe are not reflected in the current market-wide discount to net asset value."

Since January, INPP had repurchased £33.6m of shares as part of its expanded £200m buyback programme, which runs through to March next year.

The company estimated that added 0.4p per share to the 31 December 2024 net asset value.

Total buybacks since programme inception now stood at £76.7 million.

The company also announced two recent UK education infrastructure divestments - a £49m sale of senior debt in a portfolio of school assets, expected to complete in early July, and an £8m sale of minority equity interests in seven public-private partnership (PPP) assets, due to complete in the third quarter.

Both were in line with the latest portfolio valuations.

INPP said it had now realised £317m in asset sales over the last 30 months, representing around 12% of the portfolio.

Despite the current market environment, the company said it had made limited follow-on investments totalling £5.9m this year, including funding for commitments to the Gold Coast Light Rail, Flinders University, and digital infrastructure group Toob.

A further £7m in follow-on investments was expected over the next 15 months.

The board reaffirmed its dividend guidance, targeting payouts of 8.58p per share in 2025 and 8.79p in 2026.

INPP said it would shift to quarterly dividend payments from September.

Its net asset value per share as at 31 December 2024 was 144.7p.

Recent operational highlights included the full connection of London's Tideway super sewer, which was now in system commissioning, and continued progress at Cadent, INPP's largest investment, ahead of Ofgem's draft determination for its next price control.

A fault at Beatrice OFTO was under repair and not expected to materially impact valuations due to insurance coverage and regulatory protections.

INPP also highlighted recent changes to its investment adviser fee structure, which from July would be based equally on net asset value and market capitalisation.

The company said it expected that to reduce ongoing fees by about 10% annually.

Its board said it remained confident in the portfolio's inflation-linked cash flows and long-term growth prospects.

INPP also welcomed the UK government's recently published 10-year infrastructure strategy, which it said emphasised the importance of private capital in funding critical national infrastructure.

"The company believes responsible infrastructure investment that supports the needs of global communities while accelerating the environmental transition is a significant investment megatrend," INPP said in its update.

At 1104 BST, shares in International Public Partnerships were up 0.45% at 120.13p.

Reporting by Josh White for Sharecast.com.