REG - 3i Infrastructure - 3i Infrastructure plc – Performance update

3i InfrastructureAnnouncement

03/02/2025 07:00

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RNS Number : 5254V  3i Infrastructure PLC  03 February 2025

 

3 February 2025

 

3i Infrastructure plc - Performance update

 

 

Portfolio performing well, with attractive growth opportunities.

Recent realisations demonstrate value creation potential.

 

 

3i Infrastructure plc ('3iN' or the 'Company') is an investment company whose
purpose is to invest responsibly in infrastructure, delivering long-term
sustainable returns to shareholders and having a positive influence on our
portfolio companies and their stakeholders.

 

This statement relates to the period from 1 October 2024 to 31 January 2025
(the 'Period').

 

Scott Moseley and Bernardo Sottomayor, Managing Partners and Co-Heads of
European Infrastructure, 3i Investments plc, Investment Manager of the
Company, commented:

 

"We continue to see good earnings momentum in the portfolio, driven by our
strategic focus on prioritising growth investments in our existing portfolio
companies.

 

Transactions in the private markets demonstrate continued demand for
high-quality infrastructure companies, such as those held by 3iN, and the
potential latent value within our portfolio. During the period, we completed
the sale of our stake in Valorem at a 31% premium to the pre-transaction
valuation, providing further evidence of this dynamic.

 

We are on track to deliver our dividend target for the year, which is expected
to be fully covered by income."

 

 

·    Valorem sale: On 31 January 2025, the Company completed the
previously announced sale of its 33% stake in Valorem for net proceeds of
€309 million, generating a 21% gross annual IRR and 3.6x gross money
multiple.

 

·    TCR continues to perform well, with numerous new contract wins and an
accelerated expansion of its geographical footprint. On 15 January 2025, TCR
was selected to provide a centralised all-electric Ground Support Equipment
pool at JFK International Airport New Terminal One. This represents a
step-change in its presence in North America and a strong platform for further
expansion into this largely untapped market.

 

·    Global Cloud Xchange ('GCX') is also continuing to perform well,
particularly on its core Europe-Middle East and Middle East-Asia routes. In
December 2024, GCX committed to invest $34 million (funded from the company's
own resources) to acquire new capacity on the India-Asia-Xpress and
India-Europe-Xpress cable systems, adding strategically important reach to
GCX's network, within attractive growth markets. The sales pipeline for GCX's
capacity remains strong, driven by the increasing need for subsea fibre
capacity and premium pricing dynamics in GCX's core geographies.

 

·    Future Biogas ('FB'): In January 2025, FB completed the construction
of the Gonerby Moor site and connection to the gas grid, further increasing
the operational scale of the company. The company has a 15-year offtake
agreement with AstraZeneca for the green gas produced at this site. Business
performance continues to be strong, supported by higher gas prices and strong
production volumes. FB has a good pipeline of future growth opportunities
which will continue to add value to the business.

 

·    DNS:NET's focus remains on increasing penetration rates and Average
Revenue Per User. It has outperformed our revised investment case on those
metrics during the Period. However, given the ongoing challenges across the
sector, we retain a cautious outlook for the time being. On 14 January 2025,
3iN completed an equity injection of €24 million to continue to fund the
fibre roll-out.

 

·    As flagged in the half-year update, Ionisos is experiencing some
softness in its non-core industrial segment, and SRL continues to experience
softer than expected trading in the Period.

 

·    Our other portfolio companies are performing ahead or in line with
expectations set in September 2024.

 

·    Income in line with expectations: Total income and non-income cash in
the three months to 31 December 2024 was £58 million, 18% higher than the
prior year.

 

·    FY25 dividend target: The Company is on track to deliver the FY25
dividend target of 12.65 pence per share, up 6.3% from FY24, which is expected
to be covered by net income.

 

·    Balance sheet: At 31 January 2025, the Company had available liquidity
of £466 million, after the receipt of proceeds from the Valorem sale. This
includes a cash balance of £266 million, and undrawn commitments of £200
million available under its £900 million RCF.

 

 

Ends

 

For information, please contact:

 

 Thomas Fodor           Shareholder enquiries  +44 20 7975 3469
 Kathryn van der Kroft  Media enquiries        +44 20 7975 3021

 

 

About 3i Infrastructure plc

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment
company, an approved UK Investment Trust, listed on the London Stock Exchange
and regulated by the Jersey Financial Services Commission. The Company's
purpose is to invest responsibly in infrastructure, delivering

long-term sustainable returns to shareholders and having a positive influence
on its portfolio companies and their stakeholders.

 

3i Investments plc, a wholly owned subsidiary of 3i Group plc, is authorised
and regulated in the UK by the Financial Conduct Authority and is the
investment manager of 3i Infrastructure plc.

 

This press release is not for distribution (directly or indirectly) in or to
the United States, Canada, Australia, or Japan and is not an offer of
securities for sale in or into the United States, Canada, Australia or Japan.
 Securities may not be offered or sold in the United States absent
registration under the U.S. Securities Act of 1933, as amended (the
'Securities Act'), or an exemption from registration under the Securities Act.
Any public offering to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer or selling security holder and
will contain detailed information about 3i Group plc, 3i Infrastructure plc
and management, as applicable, as well as financial statements.  No public
offering in the United States is currently contemplated.

 

This statement aims to give an indication of material events and transactions
that have taken place in the period from 1 October 2024 to 31 January 2025 and
their impact on the financial position of 3i Infrastructure plc. These
indications reflect the Board's current view. They are subject to a number of
risks and uncertainties and could change. Factors which could cause or
contribute to changes include, but are not limited to, general economic and
market conditions and specific factors affecting the financial prospects or
performance of individual investments within the portfolio of 3i
Infrastructure plc.

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