REG - International PPL - Full year results to year ended 31 December 2025

International Public PartnershipsAnnouncement

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RNS Number : 1711Y  International Public Partnerships  26 March 2026

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION,
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DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION.

 

26 March 2026

 

INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED

('INPP', 'the Company')

FULL-YEAR RESULTS FOR THE YEAR TO 31 DECEMBER 2025

 

International Public Partnerships, the FTSE 250-listed infrastructure
investment company ('INPP' or the 'Company') is pleased to announce its
full-year results for the twelve months to 31 December 2025.

Mike Gerrard, Chair of International Public Partnerships, said: "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% i  and progressive dividend growth.
The Company is disciplined in its capital allocation which has driven
significant value for shareholders, with over £385 million of realisations
since June 2023 achieved at or above published valuations ii . The
predictability of INPP's cash flows, underpinned by a portfolio of essential
infrastructure investments with over 98% backed by long-term secure
revenues iii , means we can project the ability to pay dividends for the next
25 years. With a strong pipeline of high-quality opportunities that meet clear
risk and returns criteria, INPP remains exceptionally well-positioned to
deliver long-term value for our shareholders".

FINANCIAL highlights

NAV

·     Net Asset Value ('NAV') per share increased by 6.8p or 4.7% from
144.7p (31 December 2024) to 151.5p (31 December 2025) which, when combined
with dividends paid, delivered a NAV total return of 10.6% iv .

·     NAV growth was underpinned by strong portfolio performance, uplift
from divestments and positive foreign exchange and macroeconomic movements,
more than offsetting £156.3 million of dividends and £77.0 million of share
buybacks returned to shareholders during the year. The weighted average
discount rate increased from 9.0% to 9.1%, principally reflecting the
recycling of capital from lower-returning into higher-returning assets.

·     NAV increased 1.1% to £2.7 billion in the year.

·     As at 31 December 2025, the Company had repurchased £120.6m worth
of shares, adding an estimated 1.5p per share to NAV. This has now grown to
over £135m, adding an estimated 1.6p per share to NAV.

Dividends

INPP is pleased to be recognised as a "Next Generation Dividend Hero" by the
Association of Investment Companies v , reflecting the longest track record of
uninterrupted dividend increases among infrastructure investment trusts since
inception in 2006.

·      INPP achieved its 2025 full-year dividend target of 8.58p per
share, representing c.2.5% dividend growth and an unbroken record of dividend
increases of at least 2.5% in every year since IPO in 2006.

·      The frequency of dividend payments increased from semi-annual to
quarterly during 2025, providing investors with regular income: interim
dividends of 2.14p (September 2025), 2.14p (December 2025), 2.15p (March 2026)
per share paid, with a final payment of 2.15p expected to be paid on 8 June
2026.

·      2026 full-year dividend target reconfirmed at 8.79p per share
(c.2.5% growth) and 2027 full-year dividend target declared at 9.01p per share
(c.2.5% growth) vi .

·      Cash dividend cover of 1.1x from net operating cash flows (2024:
1.1x).

·    Reconfirmed that the Company does not need to make additional
investments to deliver current projected returns and reconfirms that the
projected cash receipts from the existing portfolio are such that even if no
further investments are made, the Company currently expects to be able to
continue to meet its existing progressive dividend policy for at least the
next 25 years. These dividends are expected to be fully covered by portfolio
distributions and the annual increases are in line with the Company's
long-term projected annual dividend growth rate of c.2.5%.

Valuation

·    IFRS profit before tax of £263.9 million (2024: £0.5 million). The
year-on-year increase principally reflects the unrealised fair value movements
of the investment portfolio in the period.

·    Portfolio valuations in the year to 31 December 2025 benefitted from
continued strong asset performance across the portfolio. Valuations were also
supported by favourable foreign exchange movements and positive updates to
macroeconomic assumptions. These impacts were partially offset by increases in
government bond yields used within the valuation process, which had a negative
effect on portfolio valuations during the year. The Company's shares
maintained a low correlation to the FTSE All Share Index of 0.5 over the 12
months to 31 December 2025 (31 December 2024: 0.4).

·    The 2026 projected dividend target of 8.79p divided by the Company's
share price as at 27 February 2026 was an attractive dividend yield of
7.1% vii .

 

Capital Allocation

The Board and the Investment Adviser continue to believe that the current
share price materially undervalues the Company and are continuing to actively
take measure to address the current discount to NAV. Throughout 2025, the
Board remained focused on implementing the disciplined capital allocation
strategy introduced in June 2023, across four key areas:

Strategic asset recycling

·      Total realisations since the capital allocation strategy was
introduced in June 2023 now exceed £385 million, equivalent to c.14% of
portfolio value at 31 December 2025 with c.£130 million announced in 2025
across all three portfolio segments (regulated, PPPs, and operating
businesses) and multiple sectors including energy transmission, social
infrastructure, transport and digital infrastructure.

·      All realisations achieved at or above most recently published
valuations, validating the Company's NAV methodology. This track record
provides tangible, third-party confirmation of the integrity of the Company's
valuation approach and demonstrates continued depth of demand in the secondary
market for infrastructure assets at a time when listed infrastructure
valuations have faced heightened market scrutiny.

Capital returns through buybacks

·      The share buyback programme was increased to up to £225 million
running until 31 March 2027. Over £135 million of shares have been
repurchased, generating an estimated 1.6p per share of NAV accretion.

Enhanced dividends and quarterly payments

·      The 2025 dividend target was met and fully covered by operating
cash flows. The Board expects to continue its long-term target rate of a 2.5%
annual increase from 2026 onwards. From 2025, the dividend frequency increased
from semi-annual to quarterly payments to provide investors with more regular
income.

Selective new investments

·      Total cash investments of £47.3 million were made during 2025
(2024: £107.8m), including the first tranche into Sizewell C and
long-standing commitments to Flinders University HMRB, Gold Coast Light Rail
Stage 3, and toob.

·      INPP has delivered over £345 million of new commitments since
June 2023 where the projected returns exceeded both the weighted average
discount rate and those implied by share buybacks whilst maintaining INPP as a
diversified portfolio of low-risk infrastructure assets.

·      Financial close reached in November 2025 on a c.£254 million
equity commitment into Sizewell C's regulated company financing the UK's new
nuclear power station, with investments to be deployed over up to five years.
The Company invested its first c.£35 million instalment, fully funded through
proceeds from prior realisations and surplus cash. Through construction and
early operations to the early 2040s, INPP's investment in Sizewell C is
expected to generate an annual cash yield of 6% and a forecast internal rate
of return in the low-teens, based on a real allowed return on equity of 10.8%
plus inflation as measured by CPIH.

·      Company selected as preferred bidder on its twelfth OFTO
investment (Moray West OFTO) requiring an estimated c.£65 million equity
commitment expected in H2 2026. The Moray West OFTO is expected to be
accretive to WADR, inflation linkage, dividend cover and ESG metrics.

Realisations ACTIVITY

During 2025, four realisations were completed or announced totalling c.£130
million:

·      BSFI Minority Equity Interests (c.£8 million): In March 2025,
the Company agreed to sell minority equity interests in seven UK education
assets from the BSFI portfolio, in line with most recent valuations. This
transaction has now reached financial close.

·      UK Education PPP Realisation (c.£49 million): In June 2025, the
Company completed a debt financing to release c.£49 million from its Priority
Schools Building Aggregator Programme investments and 13 BSF portfolio
interests. The value of retained equity interests and capital released was at
a premium to the most recent valuation. Financial close was reached in July
2025.

·      Partial Disposal of Angel Trains (c.£32 million): In August
2025, the Company completed the sale of part of its investment in Angel
Trains, the UK's largest rolling stock leasing company which reduced its
holding from 10% to 8% of risk capital. The transaction was completed at a
premium to the June 2025 valuations. INPP retains board representation through
the Investment Adviser.

·      Partial Disposal of Moray East OFTO (c.£40 million): In December
2025, the Company announced the sale of a 49% stake in the Moray East OFTO to
Daiwa Energy & Infrastructure Co. Ltd. The sale price was at a premium to
the most recently published valuation. Financial close was reached in February
2026. INPP retains a 51% holding and majority board representation.

PORTFOLIO OPERATIONAL UPDATES

Tideway (Waste water, top 10 investment, 15.8% of fair value as at 31 December
2025)

·    Tideway's 25km 'super sewer' was fully connected in February 2025 and
is now capable of preventing sewage spills that would otherwise have polluted
the River Thames. By March 2026, the system had diverted over 19 million
tonnes of sewage from the river, equivalent to 5 Wembley Stadiums.
Commissioning, including the storm testing phase, is currently underway and is
expected to be completed in the first half of 2026. Fair value at year-end was
£421.7 million (2024: £392.0 million), a 7.6% movement during the year
supported by resilient underlying cash flow expectations and continued
progress towards completion.

Cadent (Gas distribution, top 10 investment, 15.6% of fair value as at 31
December 2025)

·    In December 2025, Ofgem published its RIIO-3 Final Determination for
Cadent, setting out allowed revenues, investment allowances and performance
requirements for the 2026-2031 price control period. The Final Determination
represents a more favourable position than Ofgem's draft proposals, providing
higher allowances than previously anticipated. Cadent decided to seek an
independent review of certain aspects by the Competition and Markets Authority
("CMA"), in line with steps taken by other gas distribution network owners.
The CMA's review is expected to commence in Q3 2026. The Company's year-end
valuation reflects the Final Determination and does not consider benefits from
a successful CMA appeal. Fair value was £417.5 million (2024: £421.2
million), a modest 0.9% decrease, with the majority of the adjustment
recognised at the half year.

Angel Trains (Transport, top 10 investment, 6.1% of fair value as at 31
December 2025)

·    Angel Trains continued to perform well with its rolling stock fleet
near fully deployed. INPP's partial disposal in August 2025 reduced its
holding from 10% to 8%, with the transaction completed at a premium to the
June 2025 valuations. Fair value at year-end was £163.2 million (2024:
£157.0 million), reflecting offsetting effects of reduced ownership and
underlying valuation uplift informed by transaction pricing.

Energy Transmission assets (11 OFTO investments, 20% of fair value as at 31
December 2025)

·    The Beatrice OFTO suffered an offshore cable fault in Q2 2025 and was
operating at half capacity until repair works were completed at the start of
Q3 2025. Post year-end, Ofgem determined that the fault was beyond the OFTO's
reasonable control and concluded that existing regulatory protections would
apply, meaning Beatrice OFTO would not be subject to any revenue loss. Paid
availability for the OFTO portfolio during the year was 99.6%, above the
licence target of 98.0%. Ofgem's consultation regarding potential extension of
OFTO revenue streams is ongoing. The rest of the OFTO portfolio performed in
line with, or above expectations. The agreed minority stake sale of the Moray
East OFTO completed at a price slightly above the previously published NAV,
providing direct market evidence for the valuation of the Company's OFTO
assets. The fair value of the OFTO portfolio continues to reflect strong
operational performance and consistently high asset availability, with stable
and predictable cash flows supported by regular distributions during the year.

BeNEX (Transport, top 10 investment, 4.2% of fair value as at 31 December
2025)

·    BeNEX successfully secured and renewed multiple concessions during
2025, including the new 14-year RE34 concession in Western Germany and key
re-wins. BeNEX will now operate 15 concessions across 14 of 16 German federal
states, totalling c.67 million train kilometres. Fair value increased to
£112.2 million (2024: £83.0 million), a 35.1% uplift reflecting updated cash
flow forecasts incorporating concession wins and renewals as well as gains
from foreign exchange movements.

 

For updates and information on the wider portfolio, please refer to the Asset
Management section of the 2025 Annual Report.

 

RESPONSIBLE INVESTMENT

The Company published its latest Sustainability Report alongside the 2025
Annual Report, detailing its approach to responsible investment and ESG
integration. Key highlights include:

·      The Investment Adviser received the highest PRI rating of five
stars for the fourth consecutive assessment, covering both the Investment and
Stewardship Policy and Infrastructure modules.

·      100% of new investments in 2025 positively supported UN
Sustainable Development Goals, including INPP's investment in Sizewell C which
is expected to produce c.3.2GW of reliable baseload low-carbon electricity,
supporting c.6 million homes and c.8,000 direct jobs at peak construction.

·      94% of in-scope investments meet the Company's Net Zero
Investment Framework ('NZIF') Alignment KPI. This means that eligible
investments are either net zero, aligned to net zero or aligning to net zero
by 2030 (2024: 92%) viii .

·      36% of remaining investments have achieved the Company's "Net
Zero Ready" 2030 KPI ix , an 8 percentage point increase from 2024.

·      The Company has voluntarily disclosed under the FCA's
Sustainability Disclosure Requirements as a product with sustainability
characteristics.

·      Physical climate risk screening refreshed using updated Moody's
RMS™ models, with the vast majority of investments assessed as extremely low
or very low risk.

CORPORATE GOVERNANCE

·    Board Changes: Sarah Whitney was appointed as a Non-Executive
Director in November 2025 and will succeed Mike Gerrard as Chair from the AGM
in June 2026. Meriel Lenfestey was appointed Senior Independent Director
following John Le Poidevin's retirement alongside Giles Frost at the 2025 AGM.

 

·    Appointment of Lead Portfolio Manager: From 1 September 2025, Jamie
Hossain succeeded Chris Morgan in leading the Company's shareholder engagement
alongside other senior members of the Investment Adviser's team.

 

·    Fee Alignment and Governance: From 1 July 2025, a revised fee
structure was implemented under which Amber's base fee is calculated from an
equal weighting of market capitalisation and NAV. This change, expected to
reduce the ongoing management fee by approximately 10% x  per annum, enhances
alignment whilst maintaining Amber's incentive to grow NAV.

 

OUTLOOK

Against a backdrop of macroeconomic and international political issues
adversely affecting the investment environment, the underlying performance of
our investments remains strong. Geopolitical tensions - such as the war in
Ukraine, the US claims over Greenland and, most recently, the emerging
conflict with Iran - alongside evolving trade dynamics, continue to contribute
to heightened volatility. Separately, the rapid advancement of artificial
intelligence remains poised to reshape industries and economies worldwide.
While the direct impact of these developments on our portfolio has been
limited, the Board remains alert to the risks they pose and confident in the
defensive positioning of our investments. As we approach the Company's
twentieth anniversary, we take comfort that our portfolio of diversified,
high-quality essential infrastructure assets with strong inflation-linkage and
defensive characteristics has consistently delivered predictable returns
throughout economic cycles and prior periods of market volatility.

The listed infrastructure sector has faced challenges over the past two years,
as rising government bond yields have compressed valuations across all
yield-sensitive assets. Whilst this has impacted the share prices of INPP and
its peers, the performance of the portfolio itself has continued to exceed its
targets. During this time, INPP has continued to demonstrate disciplined and
proactive governance. The Company was among the first in its peer group to
adjust the discount rates which it uses to value the portfolio, ensuring those
valuations remain robust and reflective of prevailing conditions; whilst also
working closely with Amber to revise their fee structure to enhance alignment
with shareholders. The early repayment of the corporate debt facility further
strengthened the balance sheet, reducing financial risk and increasing
flexibility to reinvest capital into higher-value opportunities. All of these
steps helped lay the foundations for the recent uplift in NAV.

INPP's portfolio of essential infrastructure, backed by strong revenue credit
quality, providing inflation-linked returns, and managed by a world-class
Investment Adviser, represents a strongly defensive investment proposition.

Our nearly twenty consecutive years of dividend growth through the global
financial crisis, Brexit, the pandemic, and interest rate cycles demonstrate
the resilience of our business model.

 

OTHER INFORMATION

The 2025 Annual Report and financial statements have today been published on
the Company's website, along with a copy of the results presentation, and can
be accessed and downloaded at
https://www.internationalpublicpartnerships.com/investors/reports-and-publications/
(https://www.internationalpublicpartnerships.com/investors/reports-and-publications/)

In compliance with Listing Rule 9.6.1, a copy of the 2025 Annual Report has
been submitted to the National Storage Mechanism and will shortly be available
for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .

In accordance with Disclosure Guidance and Transparency Rules (DTR) 6.3.5(1A),
the regulated information required under DTR 6.3.5 is available in unedited
full text within the 2025 Annual Report as uploaded and available on the
National Storage Mechanism and on the Company's website as noted above.

 

ENDS

 NOTES TO EDITORS

 

 For further information:

Erica
Sibree
                              +44 (0) 7557 676
499 / (0) 7827 238 355

Amber Fund Management
Limited

Hugh
Jonathan
+44 (0)20 7260 1263

Deutsche Numis

Mitch Barltrop/ Maxime Lopes                       +44 (0) 7703 330
199 / (0) 7890 896 777

FTI Consulting

 

About International Public Partnerships ('INPP'):

INPP is a listed infrastructure investment company that invests in global
public infrastructure projects and businesses, which meets societal and
environmental needs, both now, and into the future.

INPP is a responsible, long-term investor in over 130 infrastructure projects
and businesses. The portfolio consists of utility and transmission, transport,
education, health, justice and digital infrastructure projects and businesses,
in the UK, Europe, Australia, New Zealand and North America. INPP seeks to
provide its shareholders with both a long-term yield and capital growth.

Amber Infrastructure ("Amber") is the Investment Adviser to INPP and in this
capacity is responsible for investment origination, asset management and fund
management of the Company.

Amber is part of Boyd Watterson Global Asset Management Group LLC, a global
diversified infrastructure, real estate and fixed income business with over
$36 billion in assets under management and over 300 employees with offices in
eight US cities and presence in twelve countries. Visit the INPP website
at www.internationalpublicpartnerships.com
(http://www.internationalpublicpartnerships.com/)  for more information.

 Important Information

This announcement contains information that is inside information for the
purposes of the UK version of the Market Abuse Regulation (EU) No. 596/2014
which is part of UK law by virtue of the European Union (Withdrawal) Act 2018
(as amended and supplemented from time to time).

This announcement does not constitute a prospectus relating to the Company and
does not constitute, or form part of, any offer or invitation to sell or
issue, or any solicitation of any offer to purchase or subscribe for, any
shares in the Company in any jurisdiction nor shall it, or any part of it, or
the fact of its distribution, form the basis of, or be relied on in connection
with or act as any inducement to enter into, any contract therefor. The
issuance programme, as described in Part VI of the Prospectus issued by the
Company on 8 April 2022, available on the website, is closed.

Forward-looking statements are subject to risks and uncertainties and
accordingly the Company's actual future financial results and operational
performance may differ materially from the results and performance expressed
in, or implied by, the statements. These forward-looking statements speak only
as at the date of this announcement. The Company, Amber and Numis Securities
Limited expressly disclaim any obligation or undertaking to update or revise
any forward-looking statements contained herein to reflect actual results or
any change in the assumptions, conditions or circumstances on which any such
statements are based unless required to do so by the Financial Services and
Markets Act 2000, the Prospectus Regulation Rules of the Financial Conduct
Authority or other applicable laws, regulations or rules.

 

 i  As at 24 March 2026. This is calculated based on INPP's weighted average
discount rate, less the Ongoing Charges Ratio, adjusted to reflect the share
price discount to the NAV using published sensitivities.

 ii  All realisations have been achieved in line with, or above, the
valuations have been included within the most relative published NAVs.

 iii  The Company's revenues are predominantly government or government backed
availability or regulated revenues, with very limited market or retail revenue
exposure.

 iv  NAV total return is calculated as the closing NAV per share plus
dividends paid during the year, divided by the opening NAV per share.

 v  https://www.theaic.co.uk/income-finder/dividend-heroes

 vi  Future profit projection and dividends cannot be guaranteed. Projections
are based on current estimates and may vary in future.

 vii  The 2026 projected dividend target of 8.79p divided by the Company's
share price as at 24 March 2026.

 viii  Where the Company has sufficient influence or control, it will work
with investee companies towards alignment with the NZIF criteria for
operational and green-field investments by 2030.

 ix  Where the Company does not have sufficient influence or control to
implement all NZIF alignment criteria, it will work with investments and
relevant stakeholders to deliver net zero readiness.

 x  This was calculated at the time of announcement in March 2025.

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.   END  FR LELLLQXLLBBV



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