Interim Management Statement
08 May 2009 - 11:23PM
UK Regulatory
TIDMBBPP
RNS Number : 9555R
Babcock&Brown Public Ptnrships Ltd
08 May 2009
Babcock & Brown Public Partnerships Ltd
Interim Management Statement
For the period 1 January 2009 to 8 May 2009
Babcock & Brown Public Partnerships Limited is a Guernsey incorporated
investment company. The Company offers shareholders an exposure to investments
in infrastructure assets, particularly those with a public or social character
such as those developed under public bodies through private finance initiatives
or public private partnership procurement.
At 8 May 2009, the portfolio comprised economic interests in 50 projects with a
geographical split as detailed below:
+--------------+---------------------+---------------------+-------------+-----------+
| Location | Number of projects | Sector | 8 | 31 |
| | | | May | December |
| | | | 2009 | 2008 |
| | | | %1 | % 1 |
+--------------+---------------------+---------------------+-------------+-----------+
| United | 36 | Health | 57 | 59 |
| Kingdom | | Govt accommodation | | |
| | | Courts | | |
| | | Police Authority | | |
| | | Education | | |
| | | | | |
+--------------+---------------------+---------------------+-------------+-----------+
| Australia | 7 | Health | 18 | 18 |
| | | Roads/Tunnels | | |
| | | Health/Custodial | | |
| | | Entertainment | | |
| | | | | |
+--------------+---------------------+---------------------+-------------+-----------+
| Canada | 2 | Education | 4 | 4 |
| | | Courts | | |
| | | | | |
+--------------+---------------------+---------------------+-------------+-----------+
| Belgium | 1 | Transport | 8 | 8 |
+--------------+---------------------+---------------------+-------------+-----------+
| Germany | 1 | Transport | 8 | 6 |
+--------------+---------------------+---------------------+-------------+-----------+
| Ireland | 1 | Courts | 4 | 4 |
+--------------+---------------------+---------------------+-------------+-----------+
| France | 1 | Health | <1 | <1 |
+--------------+---------------------+---------------------+-------------+-----------+
| Italy | 1 | Health | <1 | 1 |
+--------------+---------------------+---------------------+-------------+-----------+
1. This breakdown is based on the fair value market valuation of the Group's
investments calculated utilising discounted cash flow methodology, adjusted for
European Private Equity and Venture Capital Association (EVCA) guidelines.
New Investments in the period
There were no new investments in the period.
Interim Distribution
An interim dividend of 2.7 pence per share is to be paid on 13 May 2009 to
shareholders on the register at 27 March 2009. This was for the period 1 July to
31 December 2008.
In December 2008, the directors announced their intention to increase the
distribution payment to 5.55 pence per share for 2009.
Management Update
Alongside the results announcement on 30 March 2009, the Company advised that a
new group, Amber Infrastructure Group Limited (Amber), had entered into a
conditional agreement to acquire the rights to provide advisory and management
services to the Company that were previously supplied by Babcock & Brown. The
agreement is amongst other things, conditional upon approval by the shareholders
at the EGM, scheduled for 18 May 2009. Shareholder approval has also been sought
to change the Company's name to 'International Public Partnerships'. Approval of
the resolutions at the EGM will sever all remaining connections to Babcock &
Brown.
Amber consists of a management team and staff of 41, led by Giles Frost, Hugh
Blaney and Michael Gregory. The team was responsible for the creation of BBPP in
2006 and has provided services to the Company since that time. As a result,
there will be full continuity in terms of personnel and resources for BBPP and
its shareholders.
Following the announcement, and the sale of Babcock & Brown's stake in the
Company via a placement on 31 March 2009, the BBPP share price has increased by
21% to 104.0 pence per share, and is currently within 10% of net asset value
(NAV: 115.2 pence per share).
Outlook
The Company continues to receive a regular flow of investment proposals, notably
an increasing amount of solicitations via external advisors and vendors which
continue to be reviewed by the Company and its manager. Amber will also, on
completion of the agreement, take over the origination and development work
previously undertaken by Babcock & Brown, and the Company will continue to
benefit from a first right of refusal of all new projects developed in its
target markets. The pipeline of investment opportunities therefore appears
strong.
The Company's asset portfolio continues to perform well with revenues in line
with management forecasts. Therefore, despite the current economic downturn,
management has a very high degree of confidence in its ability to deliver
projected revenues and therefore distributions to investors, which we
anticipate, once again, will be entirely covered by operating cashflow and offer
the potential for growth in future years.
Review for the period
Top Ten Investments of the Group based on indicative Net Asset Value (NAV) as
at:
+------------------------+------+------------------------+------+
| 8 May 2009 | | 31 December 2008 | |
+------------------------+------+------------------------+------+
| Investment | % | Investment | % |
+------------------------+------+------------------------+------+
| | | | |
+------------------------+------+------------------------+------+
| Hereford & Worcester | 9.5 | Hereford & Worcester | 9.5 |
| Magistrates Courts | | Magistrates Courts | |
+------------------------+------+------------------------+------+
| Royal Children's | 8.8 | Royal Children's | 8.9 |
| Hospital, Victoria, | | Hospital, Victoria, | |
| Australia | | Australia | |
+------------------------+------+------------------------+------+
| Diabolo Project | 8.3 | Northamptonshire | 8.9 |
| | | Schools | |
+------------------------+------+------------------------+------+
| BeNEX | 8.2 | Diabolo Project | 8.1 |
+------------------------+------+------------------------+------+
| Northamptonshire | 7.3 | Strathclyde Police | 7.0 |
| Schools | | Training Centre | |
+------------------------+------+------------------------+------+
| Strathclyde Police | 7.2 | BeNEX | 5.8 |
| Training Centre | | | |
+------------------------+------+------------------------+------+
| Angel Trains | 5.2 | Angel Trains | 5.8 |
+------------------------+------+------------------------+------+
| Tower Hamlets Schools | 4.4 | Tower Hamlets Schools | 4.4 |
+------------------------+------+------------------------+------+
| Alberta Schools | 3.6 | Dublin Courts, Ireland | 3.9 |
+------------------------+------+------------------------+------+
| Dublin Courts, Ireland | 3.4 | Alberta Schools | 3.6 |
+------------------------+------+------------------------+------+
Key performance measures
+--------------------------------------------------+-------------+-------------+
| | 8 | 31 |
| | May | December |
| | 2009 | 2008 |
+--------------------------------------------------+-------------+-------------+
| Share Price | 104.00 |78.50 pence |
| | pence | |
+--------------------------------------------------+-------------+-------------+
| Total number of shares | 374,714,645 |374,714,645 |
+--------------------------------------------------+-------------+-------------+
| Weighted average discount rate1 | 8.23% | 7.95% |
+--------------------------------------------------+-------------+-------------+
| Drawn corporate debt facility | GBP58m | GBP58m |
+--------------------------------------------------+-------------+-------------+
| Uncommitted cash | GBP39.8m | GBP32.8m |
+--------------------------------------------------+-------------+-------------+
| BBPP performance vs. FTSE ALLSHARE since IPO2 | +33.5% | +9.3% |
+--------------------------------------------------+-------------+-------------+
| BBPP performance vs. FTSE ALLSHARE since 31 | +30.5% | N/A |
| December 20082 | | |
+--------------------------------------------------+-------------+-------------+
1. The discount rate has been adjusted after calculating the change in risk-free
rates between 31 December 2008 - 31 March 2009 in all geographies in which BBPP
operates. No adjustment has been made to the risk premiums that were applied at
31 December 2008. Risk-premium adjustments are only considered every half year.
1. BBPP Performance v Performance of FTSE ALLSHARE Index to 7 May 2009.
For further information, please contact:
Babcock & Brown: +44 (0)20 7203 7300
Investors: Bianca Francis
Media: Anthony Kennaway
This interim management statement has been prepared solely to provide additional
information to shareholders as a body to meet the relevant requirements of the
UK Listing Authority's Disclosure and Transparency Rules and the interim
management statement should not be relied on by any other party or for any other
purpose.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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