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BBGI Global Infrastructure (LSE:BBGI) reported strong interim results on Thursday, achieving a 2.4% net asset value (NAV) total return and maintaining an impressive asset availability rate of 99.9%.
The London-listed company indicated that, despite a minor dip in NAV per share to 147.4p due to foreign exchange fluctuations, it continued to produce stable, inflation-linked cash flows. This performance supported a 6% increase in its dividend to 8.4p per share for 2024, with a coverage ratio of 1.47x.
BBGI highlighted its financial robustness, with a net cash position of £20.6m and no cash drawn from its revolving credit facility. The company's disciplined capital management and cost control efforts kept ongoing charges at 0.9%, despite inflationary pressures.
In the first half of 2024, BBGI did not pursue new investments as none of the potential opportunities met its rigorous criteria. However, the firm remains well-positioned for future growth. It emphasized its focus on optimizing the value of its existing assets and maintaining strong client relationships, reflected in a net promoter score of 56.
Chief Executive Officer Duncan Ball commented on the strength and resilience of the company's core infrastructure portfolio. He noted, “The predictable cash flows from our existing portfolio provide the necessary headroom for the company to sustain progressive annual dividends for the next 15 years, even without additional investments.”
Ball also pointed out that stabilizing, and potentially reducing, interest rates, coupled with the increasing demand for infrastructure investments, offers long-term growth opportunities for BBGI. He added that as governments around the world grapple with high levels of public debt and the need for new infrastructure projects, BBGI is "well positioned" to play a crucial role.
The company will continue its disciplined approach to capital allocation, prioritizing the optimal use of cash to maximize value for all stakeholders.
At 1203 BST, BBGI Global Infrastructure shares had risen by 0.15% to 135.2p.
