BBGI Global Infrastructure SA (LON:BBGI) is the topic of conversation when Hardman and Co’s Analyst Nigel Hawkins caught up with DirectorsTalk for an exclusive interview.
Q1: BBGI Global Infrastructure recently published its 2020 full-year results, were there any surprises?
A1: No – as an investor in long-term infrastructure assets, with bridges and roads being particularly favoured investments, BBGI expects to deliver stable and predictable cashflows; and it did so.
Q2: Are they set to grow its dividend?
A2: The company operates a progressive dividend policy. Indeed, every year since its IPO in 2011 has seen its dividend increase. For the 2020 financial year, it is paying a dividend of 7.18p per share, which we expect to rise to 7.33p this year.
Q3: How have shares in BBGI performed since its IPO in 2011?
A3: As an Infrastructure Investment Company paying a decent dividend, the shares have been robust performers over the last decade. Importantly, over that period, total shareholder returns have averaged an impressive 11% per year, so that the company now has a market value of over £1.1bn.
Q4: To what extent have they been adversely impacted by COVID-19?
A4: While COVID-19 has had devastating consequences in many areas, the company has been virtually immune – in financial terms – from its prevalence, mainly because all their revenues are from availability-based assets and not demand-based assets. Some other Infrastructure Investment Companies, particularly those with transport investments, have faced COVID-19-related setbacks.
Q5: How seriously does BBGI Global Infrastructure takes its ESG responsibilities?
A5: Very seriously. For the first time, the company has published an ESG Annual Report, which sets out the ESG initiatives that it has taken on several fronts. Most notably, ESG issues have now become integrated within their investment cycle.