COMMUNIQUÉ RÉGLEMENTÉ

par TINC (EBR:TINC)

TINC publishes outstanding results for extended financial year 2022-2023 (18 months)

 

 

TINC publishes outstanding results for extended financial year 2022-2023 (18 months)

             

 

 

Antwerp, March 6, 2024, 7h00 CET                                                                                               Regulated information

 

 

Manu Vandenbulcke, CEO:

 

"With a net result of € 50.9 million or € 1.40 per share for the past extended 18-month financial year, TINC is once again achieving outstanding results. This reflects the strong performance of our 4 investment segments. The realised gains on the sale of the stake in the business service center Bioversneller and on the partnership of Dutch fiber company GlasDraad BV with Glaspoort are illustrative of the value creation potential within our diversified portfolio. With € 171.5 million in new commitments and € 117.4 million effectively invested, this is our strongest investment year ever. Based on this excellent result, TINC proposes a gross distribution to its shareholders of € 0.84 per share." 

 

Philip Maeyaert, Chairman Supervisory Board:

"These results validate our motto "creating sustainable value by investing in the infrastructure for the world of tomorrow" Indeed, our investments in future-oriented infrastructure create tangible and sustainable value - for society as well as for our shareholders. For the seventh year in a row, TINC succeeds in increasing its distribution to shareholders. This underlines our ability to achieve financial success with a positive impact on the future through thoughtful investments."  

 

Highlights

▪  The portfolio result for the extended 18-month financial year (from July 1, 2022 to December 31, 2023) is € 61.5 million (or a portfolio return of 9.88% on an annualized basis). This includes the € 9.5 million realised gain on the sale of participations. This results in a net profit of € 50.9 million or € 1.40 per share;

▪  Total cash receipts from the portfolio over the past financial year amount to € 126.0 million

(including the € 60.1 million proceeds from the sale of participations);

▪  Shareholders' equity amounts to € 494.6 million or € 13.60 per share (€ 463.6 million or € 12.75 per share at June 30, 2022), and this after deducting the distribution to shareholders (€ 19.6 million or € 0.54 per share) in October 2022;

▪  The investment portfolio includes 28 participations in Belgium, France, Ireland and the Netherlands with a fair value (FV) of € 468.4 million (+ 12.7% compared to June 30, 2022). This portfolio is valued using a weighted average discount rate of 8.10% (7.81% at June 30, 2022);

▪  TINC realised two divestments during the financial year (full sale of the stake in Bioversneller NV (B) and partial sale of the stake in GlasDraad BV (NL)), and invested in four new participations: Yally (B), active in the energy efficiency renovation and rental of residential real estate, the Obelisc business center (B), 2 operational fiber networks of NGE Fibre (FR) and a public-private partnership (PPP) for 6 higher education buildings (IRE);

▪  During the financial year, TINC committed € 171.5 million for investments in new and existing participations;

▪  TINC further effectively invested € 117.4 million under both current and new investment commitments. This concerns investments in the new participations Yally (B), Obelisc (B), Higher

Education Buildings (IRE), NGE Fibre (FR) and in the existing participations Storm (B), Windfarm

Kroningswind (NL), Zelfstroom (NL), Social Housing Ireland (IRE), Garage Park (NL), GlasDraad (NL) and Datacenter United (B);

▪  The outstanding contractual investment commitments amount to €112.2 million at the end of the financial year. The combination of the current participations and the outstanding contractual investment commitments allows the portfolio of TINC to grow over time to approximately € 580 million;

▪  The net cash position amounts to € 27.4 million at the end of the financial year. TINC also has € 150 million of contractual credit lines. In addition, TINC has developed a framework for attracting sustainable debt financing under various forms (Sustainable Finance Framework);

▪  Shortly after year-end, TINC committed € 30 million to participate in a financing provided to Storm

Group (B), a developer and operator of renewable energy. This amount will be invested during 2024;

▪  TINC proposes a gross distribution of € 0.84 per share for the current extended financial year. The distribution, subject to approval by the general meeting, will take place in May 2024;

▪  In June 2023, the Supervisory Board welcomed Mrs. Martine De Rouck as a director nominated by Belfius to replace Mrs. Katja Willems;

▪  The annual report as of December 31, 2023 is available on the website of TINC (www.tincinvest.com) along with the documents for the extraordinary general meeting of April 11, 2024 (as of March 8 a.m.).

 

 

 

 

 

 

Increase of the distribution to shareholders supported by strong results

For the past extended financial year of eighteen months, TINC can again report strong results, despite operating in a world full of challenges such as persistent inflation, high interest rates, volatile power prices and geopolitical uncertainty. The diversification of the portfolio with participations across segments and countries – each with its different dynamics – undoubtedly supports the robust nature of the overall portfolio. 

Over the extended financial year, the participations of TINC generated an outstanding portfolio result of € 61.5 million, which amounts to an annualised portfolio return of 9.88%. The strong operational performance of the participations across the four segments and the realised gains through active portfolio management contributed to this excellent figure.

This results in a net profit of € 50.9 million or € 1.40 per share. Based on this outstanding annual result, TINC is proposing a distribution to its shareholders of € 0.84 per share, which is an increase in the distribution for the seventh year in succession. The distribution amounts to an annualised pre-tax yield of 4.77% on the closing share price at the end of the financial year. This distribution is entirely covered by cash flows received by TINC from its investment portfolio.

Strongest investment year ever

The investment policy of TINC is embedded in four key societal trends: the transition to a low-carbon society, the upgrading of public infrastructure, increasing digitalisation, and the growing focus on health and well-being. For TINC, these trends provide the framework for investments in four segments: Public Infrastructure, Energy Infrastructure, Digital Infrastructure, and Selective Real Estate.

TINC experienced its strongest investment activity ever with € 171.5 million in new investment commitments. This includes additional commitments to six existing participations (Zelfstroom, Storm, Datacenter United, windfarm Kroningswind, GlasDraad, Social Housing Ireland) and to four new participations (Yally, the business service center Obelisc, the PPP Higher Education Buildings and NGE Fibre fiber networks). These new investment commitments are spread nicely over the four segments, and they also illustrate the geographical ambitions of TINC. TINC has, for example, scaled up its presence in Ireland by acquiring a 100% stake in the Irish Higher Education Buildings PPP and made its first investment in France by taking a participation in the fiber networks of NGE Fibre. These new commitments further underline the ambition of TINC to seek profitable growth and portfolio diversification.

TINC also effectively invested € 117.4 million in existing and new participations under contractual investment commitments.

At the end of the financial year, TINC still has € 112.2 million in contractual investment commitments outstanding, which are projected to be effectively invested over the 2024-2027 period. Of this total amount of € 112.2 million in outstanding contractual investments, € 35.7 million relates to the Public Infrastructure segment, € 23.6 million to the Energy Infrastructure segment, € 9.9 million to the Digital Infrastructure segment, and € 43 million to the Selective Real Estate segment.

 

Investment portfolio continues to grow

At the end of the financial year, the investment portfolio includes twenty-eight participations, a net increase by three participations.

The fair value of the investment portfolio increases with € 52.9 million to € 468.4 million at the end of the financial year. This 12.7% increase compared to the previous financial year is the net result of investments in existing and new participations (€ 117.4 million), repayments from and divestments of participations (€ 69.5 million) and an increase in the fair value of the portfolio (€ 3.4 million). The fair value of the portfolio is evenly spread over the four segments, with 33% in Public Infrastructure, 27% Energy Infrastructure, 21% Digital Infrastructure and 19% Selective Real Estate.

The fair value of the investment portfolio is calculated by applying a discount rate to the future cash flows from each individual participation. The weighted average discount rate was 8.10% at the end of the financial year, compared to 7.81% at the end of the previous financial year. The increase is the net result of several changes. One of these changes was the increase of the applicable discount rate for specific participations, such as onshore windfarms. Also, active portfolio management such as the divestment of a number of participations led to changes to the composition of the investment portfolio. The market interest rate further increased slightly  during the financial year. TINC has seen interest in high-quality infrastructure remain strong, which largely compensates for any potential upwards pressure on the discount rates due to rising interest rates.

TINC received € 126,0 million in cash flows from its investment portfolio. This includes regular dividends and interests, but also the proceeds from the divestment of the stake in Bioversneller NV (€ 20.1 million) and from the partial divestment of its stake in Dutch fiber company GlasDraad (€ 40,0 million). Both these divestments delivered a significant realised gain for TINC. These transactions support the valuation parameters that TINC applies and render cash available for new investment opportunities.

Through the combination of the current participations and the outstanding contractual investment commitments, the investment portfolio of TINC will grow over time to approximately € 580 million.

Contractual investment commitments more than covered by available funding

TINC has € 27.4 million of cash at the end of the financial year and is available for the outstanding contractual investment commitments and for general investment purposes.

TINC has access to various sources of financing for its investment commitments. On top of the available cash, this comprises cash flows from its investment portfolio, including proceeds from the sale of participations, and the use of debt financing. The debt financing options include drawdowns under available bank credit facilities and the possible bond issues, facilitated by the Sustainable Finance Framework. This framework is implemented with the specific objective of attracting debt funding for sustainable investments within the segments in which TINC operates.

TINC is debt-free and has access to € 150 million in undrawn contractual credit facilities with banks.

The combination of € 27.4 million in cash and € 150 million in available credit facilities means that TINC has access to € 177.4 million of available funding at the end of the financial year.

 

 

 

Sustainable investing and long-term vision are self-evident

As an investor in the infrastructure for the world of tomorrow, TINC holds a clear long-term vision that is inextricably linked to a focus on societal relevance and sustainability. TINC is committed to contributing to building a low-carbon, healthy, connected, safe and prosperous society through its investment policy and participations. This vision is embedded in the sustainability strategy of TINC for purposes of identifying new opportunities and managing its participations.

 

Supervisory Board

In June 2023, the mandate of Mrs. Katja Willems as non-executive board member came to an end. We would like to thank her for her contribution to foster the development of TINC, and we are pleased to welcome Mrs. Martine De Rouck as non-executive board member. The Supervisory Board is an independent and diverse body that currently consists of eight members.

 

 

 

 

Key figures  

 

1. Audited consolidated statement of comprehensive income

Period:

December 31, 2023

June 30, 2022

(€)

Notes

18 months

12 months

Operating income

11

                  83.214.652

                  39.819.732

Interest income

                  11.745.044

                    8.622.572

Dividend income

                  35.634.123

                  11.239.840

Gain on disposal of investments

                    9.523.933

                                 - 

Unrealised gains on investments

                  25.104.519

                  19.435.515

Revenue

                    1.207.033

                       521.806

Operating expenses (-)

11

                 (32.390.358)

                 (14.233.888)

Unrealised losses on investments

                 (21.707.323)

                   (9.376.128)

Selling, General & Administrative Expenses

                 (10.323.753)

                   (4.709.641)

Depreciation and amortizations

                          (5.606)

                          (3.663)

Other operating expenses

                      (353.676)

                      (144.455)

Operating result, profit (loss)

                  50.824.294

                  25.585.844

Finance income

12

                       973.666                        196.020

Finance costs (-)

12

                      (406.430)                      (175.887)

Result before tax, profit (loss)

                  51.391.530                   25.605.977

Tax expenses (-)

13

                      (492.516)                      (632.465)

Total Consolidated income

                  50.899.013                   24.973.512

Total other comprensive income

                                 -                                    - 

Total comprehensive income

                  50.899.013                   24.973.512

Earnings per share (€)

1. Basic earnings per share (*)

14

                             1,40                              0,69

2. Diluted earnings per share (**)

14

                             1,40                              0,69

Weighted average number of ordinary shares

                   36.363.637                     36.363.637

(*) Calculated on the basis of the weighted average number of ordinary shares: 36.363.637 (31/12/2023) en 36.363.637 (30/06/2022)

(**) Assumed that all stock options warrants which were in the money as at the end of the period would be exercised. The Company has no options / warrants outstanding throughout the reporting period.            

2.       Audited consolidated balance sheet 

Period ending at:

December 31, 2023

June 30, 2022

(€)

 Notes

18 months

 12 months

I. NON-CURRENT ASSETS

                   468.483.322

                   415.860.071

Intangible assets

                              7.434

                            13.040

Investments at fair value through profit and loss

16

                   468.356.669

                   415.436.602

Deferred taxes

13

                          119.219

                          410.430

II. CURRENT ASSETS

                     28.923.078

                     48.779.322

Trade and other receivables

17

                       1.558.508

                          343.515

Cash and short-term deposits

18,4

                     27.364.570

                     48.435.807

Other current assets

                                    -                                       - 

TOTAL ASSETS

                   497.406.399

                   464.639.394

Period ending at:

December 31, 2023

June 30, 2022

(€)

 Notes

18 months

 12 months

I. EQUITY

3,19

                   494.595.854

                   463.624.416

Issued capital

                   135.450.590

                   151.814.227

Share premium

                   174.688.537

                   174.688.537

Reserves

                     86.194.900

                     30.424.719

Retained earnings

                     98.261.827

                   106.696.933

II. LIABILITIES

                       2.810.546

                       1.014.978

A. Non-current liabilities

                                    -                                       - 

B. Current liabilities

                       2.810.546                        1.014.978

Financial liabilities

                                    -                                       - 

Trade and other payables

20

                       2.776.098                           718.351

Income tax payables

                                    (0)                                    264.559

Other liabilities

                            34.448                             32.069

TOTAL EQUITY AND LIABILITIES

                   497.406.399                    464.639.394

3.       Audited consolidated statement of changes in equity 

Financial Year 2022 - 2023

.

Notes

Issued capital

Share premium

Reserves

Retained earnings

Equity

June 30, 2022                                           2

 151.814.227        174.688.537  30.424.719    106.696.933    463.624.416

Total comprehensive income                   1

                  -                          -                   -        50.899.013      50.899.013

Capital Increase

                  -                          -                   -                      -                      - 

Distribution towards

15

shareholders

  (16.363.637)                               -    (3.272.727)                             -     (19.636.364)

Other changes

                  -                          -    59.042.908    (59.334.119)        (291.211)

December 31, 2023

 135.450.590        174.688.537  86.194.900      98.261.827    494.595.854

The following table shows, for comparison purposes, the changes in equity from the previous financial year.

Financial year 2021-2022

Notes

Issued capital

Share premium

Reserves

Retained earnings

Equity

June 30, 2021                                           2               168.177.863        174.688.537   (6.522.108)        121.518.827    457.863.119

Total comprehensive income                   1                                        -                          -                   -        24.973.512      24.973.512

Capital Increase                                                                                     -                          -                   -                      -                      - 

image

Distribution towards

15               (16.363.637)                                 -    (2.545.455)                       -     (18.909.091) shareholders

Other changes

                  -                          -    39.492.282    (39.795.406)        (303.125)

June 30, 2022

 151.814.227        174.688.537  30.424.719    106.696.933    463.624.416

4.       Audited consolidated statement of cash flows

Period ending at:

December 31, 2023

June 30, 2022

(€)

Notes

18 months

12 months

Cash at beginning of period

                  48.435.807                   60.256.857

Cash Flow from Financing Activities

                (19.636.364)                (18.909.091)

Proceeds from capital increase

                                 -                                    - 

Proceeds from borrowings

                                 -                                    - 

Repayment of borrowings

                                 -                                    - 

Interest paid

                                 -                                    - 

Distribution to shareholders

                (19.636.364)                (18.909.091)

Other cash flow from financing activities

                                 -                                    - 

image

Cash Flow from Investing Activities                    8.722.457                   11.986.672

Investments

              (117.443.610)

                (23.951.493)

Repayment of investments

                  79.002.285

                  15.552.131

Interest received

                  10.404.573

                    8.331.436

Dividend received

                  35.222.909

                  11.448.990

Other cash flow from investing activities

                    1.536.299

                       605.608

Cash Flow from Operational Activities

                (10.157.330)

                  (4.898.631)

Management Fee

                  (7.845.899)

                  (5.283.195)

Expenses

                  (1.955.608)

                     (516.239)

Recovered VAT

                       694.177

                       788.779

Taxes paid

                  (1.050.000)

                       112.025

Cash at end of period                                                                                       18

27.364.570

48.435.807

 

 

 

 

 

 

 

Contact:

Manu Vandenbulcke, CEO TINC

T +32 3 290 21 73 – manu.vandenbulcke@tincinvest.com

Filip Audenaert, CFO TINC

T +32 3 290 21 73 – filip.audenaert@tincinvest.com

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About TINC 

 

TINC is a listed investment company that seeks to create sustainable value by investing in the infrastructure for the world of tomorrow. TINC participates in companies that are active in the realization and operation of infrastructure and holds a diversified portfolio of participations in focus areas such as public infrastructure, energy infrastructure, digital infrastructure and selective real estate in Belgium, France, Ireland and the Netherlands.

For more information, please visit: www.tincinvest.com 

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