Investors

Key performance indicators

Data as at 31 March 2017

Total return
% of opening Net Asset Value

Target
To provide shareholders with a total return of 8% to 10% per annum, to be achieved over the medium term.

Outcome for the year
Total return of 9.4% for the year to 31 March 2017.

Performance against target
Within target range.

Rationale, definition and performance over the year

Rationale and definition
  • Total return is how we measure the overall financial performance of the Company
  • Total return comprises the investment return from the portfolio and income from any cash balances, net of advisory and performance fees and operating and finance costs. It also includes movements in the fair value of derivatives and taxes
  • Total return, measured as a percentage, is calculated against the opening net asset value, net of the final dividend for the previous year, and adjusted (on a time weighted average basis) to take into account any equity issued and capital returned in the period
Performance over the year
  • Total return of £146 million in the year, or 9.4% on opening net asset value, adjusted for the new equity raised
  • The return was driven by the good performance of the portfolio, including strong distributions from Elenia and a valuation uplift from XLT where 42 trains were accepted by the franchise holder
  • The decline in sterling against the euro has benefited the Company, net of the impact of the hedging programme which continues to reduce the volatility in net asset value from exchange rates
  • Costs were managed in line with expectations

  

Annual distribution
pence per share

Target
Progressive dividend per share policy. Targeting a full year dividend for FY17 of 7.55 pence per share.

Outcome for the year
Total dividend of 7.55 pence per share paid and proposed.

Performance against target
Target delivered.

Rationale, definition and performance over the year

Rationale and definition
  • This measure reflects the dividends distributed to shareholders each year
  • The Company’s business model is to generate returns from portfolio income and capital returns (through value growth and realised capital profits). Income, other portfolio company cash distributions and realised capital profits generated are used to meet the operational costs of the Company and distributions to shareholders
  • The dividend is measured on a pence per share basis, and is targeted to be progressive
Performance over the year
  • Proposed total dividend of 7.55 pence per share, or £78 million, in line with the target set out at the beginning of the year
  • Income generated from the portfolio and cash deposits, including non-income cash distributions and other income from portfolio companies, totalled £106 million for the year. Operational costs and finance costs used to assess dividend coverage totalled £31 million in the year. The resulting dividend coverage shortfall of £3 million is covered by accumulated realised profits
  • Setting a total dividend target for FY18 of 7.85 pence per share

   

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