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HICL 6-month Profit Up; Board Recommends Corporate Domicile Change To UK

HICL Infrastructure Company Limited (HICL.L) reported profit before tax of 192.6 million pounds for the six months ended 30 September 2018, up from 87.6 million pounds in the year-ago period. Earnings per share rose to 10.8 pence from 5.1 pence a year ago.

Total income for the six-month period rose to 193.9 million pounds from 88.5 million pounds last year.

On an Investment Basis, profit before tax for the period rose to 192.8 million pounds from 87.8 million pounds last year, while earnings per share were 10.8 pence compared to 5.1 pence a year ago. Income for the period grew to 211.0 million pounds from 108.1 million pounds last year.

NAV per share was 156.4 pence as at 30 September 2018, compared to 149.6 pence as in March 2018.

Looking ahead, HICL Infrastructure said it is on target to deliver aggregate dividends of 8.05 pence per share for the current financial year. The Board also reaffirmed the 8.25 pence per share target for the next financial year ending 31 March 2020.

The company announced a new dividend guidance for the financial year ending 31 March 2021 of 8.458 pence per share, reflecting the Board's confidence in the portfolio's forecast cash flows.

In addition, HICL Infrastructure's Board announced its proposal that the company move its investment business from Guernsey to the UK.

The company said it believes this is in the best interests of shareholders as a whole in light of the evolving cross-border taxation landscape. The proposal will require shareholder approval, which will be sought at an Extraordinary General Meeting in the first quarter of 2019.

The HICL Board and InfraRed have concluded that it would be in the best interests of both the company and its shareholders as a whole to change the domicile and tax residency of HICL's investment business to the UK through the creation of a new UK incorporated company whose shares would be listed on the UKLA's Official List and admitted to the main market of the London Stock Exchange to which all of the Company's assets would be transferred.

HICL noted that about 90 percent of it's shareholders are UK based, and include retail investors and institutional investors. The board recognizes that the company has a predominantly UK shareholder base and a portfolio that is largely invested in the UK, and is mindful of the potential for future changes in the cross-border tax landscape.

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