PFI Infrastructure Co reports second successful year since flotation

The PFI Infrastructure Company (PFI Co) has reported a pre-tax profit of £3.5m on a turnover of £7.9m.

PFI Co invests in both primary and secondary PFI equity. Its latest financial figures cover the 12 months to 30 June.

Its portfolio includes 22 PFI/PPP project companies in which it holds between 17% and 100% of the capital.

Richard Jewson, chairman, said: “All our projects in the mature operational phase are running smoothly. It can take some time for contractual and snagging issues to be resolved after services commencement, which is the case on some of our more recent projects.”

All eight of PFI Co’s eight new projects are still in the construction phase, involving nine main building contractors on a total of 37 sites.

The group’s portfolio is focused on accommodation projects, mainly in the health and education sectors, as payment is linked to the availability of the facility rather than demand or level of usage.

The portfolio today includes four new primary projects which reached financial close since the end of the 12-month financial period to June.

A new secondary purchase is the acquisition of 100% of the Penweddig Secondary School project in Aberystwyth. This was followed more recently by the 100% acquisition of two further projects, Workington Community hospital and West Cumbria police headquarters. All are operational.

As a result of the regular spend, PFI Co is left with a £24m cash balance.

The group is looking for opportunities in water and sewerage or waste management projects provided that “demand and operational risks are adequately covered off”.

The main driver of growth in net asset value has been the portfolio originally acquired in 2004.

The PFI Co raised £47m through the initial share placing on the Alternative Investment Market (AIM) two years ago and a further £30m through the issue of additional shares in March 2006

It was the first listed investment vehicle dedicated solely to investment in equity in Public Private Partnerships, particularly projects launched under the Private finance Initiative.