HICL Infrastructure PLC on Wednesday reported a return to profitability in the first-half of the year, driven by strong income growth and improved shareholder returns.

The London-based closed-ended investment company reported a pretax profit of £45.0m for the six months ended September 30, swinging from a a loss of £27.6m in the prior-year period.

Income surged to £71.7m, compared to £10.9m a year earlier, while total shareholder return on an annualised basis rose to 3.1%, up from 1.7% a year ago.

The company declared a dividend of 2.06 pence per share for the first half of the year and reaffirmed its annual dividend target of 8.25p, with the board confirming it is on track to meet this goal.

For 2024, HICL paid a first-half dividend of 2.07p, and the annual dividend was 8.25p. The company also reiterated its guidance for an 8.35p dividend for financial 2026.

HICL’s net asset value per share stood at 156.5p as of September 30, down slightly from 158.2p in March. Earnings per share improved to 2.2p, compared to a loss of 1.4p a year earlier.

The company said that the current public market discount to private valuations for high-quality core infrastructure assets offers a ‘compelling opportunity’ for long-term investors. The board noted that these conditions provide significant potential to advance the company’s strategy, supported by the robust, long-term drivers of infrastructure development.

Chair Mike Bane said: ‘This period has seen a concerted effort to enhance the company’s balance sheet. Proceeds received from completed asset sales have allowed full repayment of the revolving credit facility and the commencement of the company’s first share buyback programme, which has substantially progressed.’

HICL also said that Chief Financial Officer Helen Price will be leaving InfraRed, the company’s investment manager, in December.

Shares in HICL were down 1.1% at 122.70 pence in London on Wednesday morning.

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