Business

Infrastructure firm 3i has only seen "limited disruption" from virus

A fund managed by 3i Group has owned George Best Belfast City Airport since June 2017

JERSEY-incorporated investor 3i Infrastructure said it is still on track for its dividend target and has so far experienced only "limited disruption" from Covid-19.

And it is set to pay its 9.2p per share dividend target for its financial year ending March 31, a rise of 6.4 per cent from 8.65p per share in financial 2019. The dividend target is fully covered, it said.

A fund managed by 3i Group has owned George Best Belfast City Airport since June 2017.

On Covid-19, 3i Infrastructure said: "To date, any operational impact has been limited and, currently, all of our portfolio companies are maintaining continuity of service to their customers."

Among investments, airport ground handling equipment business TCR has been hurt by the sharp drop in air travel.

But 3i Infrastructure said TCR has "a strong liquidity position, and is taking action to prepare for a scenario of a potentially long period of reduced aircraft movements".

At present, 3i has £720 million of total available liquidity and its cash balance is £420m, with its £300m revolving credit facility undrawn.

It also has further receivables of approximately £199 million due in two equal instalments in December 2020 and December 2021, both due unconditionally and result from the disposal of Wireless Infrastructure Group.

Chair Richard Laing said: "We have a strong and liquid balance sheet and a defensive portfolio of businesses providing essential services. This positions us well to withstand these extraordinary circumstances."

Enjoy reading the Irish News?

Subscribe now to get full access

Business