International Public Partnerships Announces H1 Results

International Public Partnerships, a U.K.-listed investment company, has reported a significant decrease in pretax profit for the first half of the year. The company attributes this decline primarily to an unrealized fair value loss on its portfolio during the period. However, International Public Partnerships remains optimistic about its future prospects and has raised its dividend target for the year.

Profit and Investment Income Decline

For the first half of the year, International Public Partnerships' pretax profit stood at £259,000, a notable drop from the £219.2 million recorded in the same period last year. In addition, the company witnessed a decline in total investment income, which decreased from £237.2 million to £21.9 million.

Dividend Increase and Future Outlook

Despite the challenging financial results, International Public Partnerships remains committed to delivering value to its shareholders. The company's board has declared an interim dividend of 4.06 pence per share, demonstrating an increase from the previous year's 3.87 pence per share. Furthermore, the board has raised its dividend target for 2023 by 5%, setting it at 8.13 pence per share.

Looking ahead, International Public Partnerships aims to maintain sustainable dividend growth. The board plans to review its dividend policy beyond 2023 but currently projects a long-term dividend growth rate of approximately 2.5%. As a result, the company anticipates a 2024 dividend target of 8.33 pence per share.

Confidence in Core Infrastructure

International Public Partnerships remains confident in the critical role that core infrastructure plays in national prosperity and economic resilience, as well as its crucial contribution to the transition to a net-zero economy. The company believes that these fundamental characteristics will ultimately align with their valuation by financial markets. This alignment will reinforce long-term investor interest in the sector and position International Public Partnerships for future success.