Earnings Release • Sep 12, 2018
Earnings Release
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Antwerp, under embargo until 12 September 2018, 7h30 CET
legislation. This distribution corresponds to a gross return of 4,08% and a net return (after withholding tax) of 4,01% on the share price of € 12,00 at the end of the financial year;
Manu Vandenbulcke, CEO: "This is once again a very good result for TINC. The investment portfolio grew considerably with diversification into fibre-optic networks (Glasdraad in the Netherlands) and special residential care (Réseau Abilis in Belgium). The successful capital increase in March provides the necessary resources for further growth. Our 17 participations continue to perform as expected. This allows us to confirm TINC's distribution policy. The proposed distribution to the shareholders increases to € 0,49 per share."
The net profit for the financial year 2017-2018 amounts to € 19,3 million (or € 0,87 per share). This is an increase of approximately 80% compared to the net profit of € 10,7 million of the previous financial year, as a result of predominantly the growth of the portfolio and some non-recurring items. The operational result amounts to € 17 million (or € 0,77 per share), an increase of 56% compared to the previous financial year.
A distribution is proposed to the shareholders of € 0,49 per share, an increase of 2,08% compared to the dividend of the previous financial year. This represents a gross return of 4,08% (a net return of 4,01% after withholding tax) on the closing share price (€ 12,00) at the end of the financial year. The amount of € 0,49 per share will be distributed, using the legal framework created in the summer of 2017, partly in the form of a dividend (€ 0,03 per share) and to the largest part by way of a capital reduction (€ 0,46 per share). No withholding tax is due on the latter amount.
The net profit is the result of the good performance of the participations, which translates into a portfolio result of € 20,3 million. The increase, compared to the previous financial year, is mainly the result of new investments and includes the one-off positive impact on the valuation of the portfolio as a result of the recent tax reform in Belgium . The portfolio was valued by discounting the expected future cash flows from the participations at the same discount rates as those of the previous financial year.
At the end of the financial year, the investment portfolio includes 17 participations. The fair market value of the portfolio increased with € 66,2 million to € 243,4 million, an increase of 37,4% compared to the previous financial year.
TINC invested in total € 65,5 million in new and existing participations.
In September 2017, TINC entered into a joint venture agreement with Maatschappij voor Breedband in Nederland for the realisation of fibre optic networks (FttH) in the Netherlands. Today, the Netherlands still has a number of underserved areas where families and businesses do not have broadband internet access. Together with its Dutch partner, who already has a significant experience in the realization of fibre-optic networks, TINC wants to make broadband internet possible for families and businesses. The fibre-optic networks will be realized in function of the interest from users and internet service providers. TINC makes an investment budget of € 20 million available of which already € 4,4 million was invested at the end of the financial year.
In February 2018, TINC entered into a joint venture agreement with Réseau Abilis, an expanding network of specialized care facilities that provide life-long residential care to persons with special needs, in 24 locations in Wallonia, Brussels and France. The facilities can accommodate persons with a wide range of mental disorders. TINC's total commitment amounts to € 34 million of which already € 27 million was invested at the end of the financial year.
These new participations reflect TINC's ambition to further diversify its portfolio from a basis of project investments to investments in infrastructure companies with a particular focus on selected areas of interest such as the healthcare sector and digital infrastructure. TINC strives to achieve a balance between project and corporate investments within its total portfolio. Always based on an investment philosophy focused on cash flows with a high degree of visibility, TINC wants to make every effort to expand its portfolio with participations in infrastructure companies that can be a platform for further growth and with revenue models with a certain degree of inflation link. In an economic climate of extremely low interest rates, TINC also wants to anticipate changes in this low interest rate environment.
During the past year, TINC also increased its participation in Via A11, an investment of approximately € 20,2 million. Via A11 is a new highway in Belgium that was realized through a public private partnership and has been in use since September 2017.
At the end of the financial year, TINC has another € 41,8 million of investment commitments outstanding under contractual commitments which will be invested in the coming years. This includes the acquisition of a (additional) participation in 2 public private partnerships in the Netherlands.
Through the combination of the existing portfolio and the contractual investment commitments, the portfolio of TINC will grow over time to circa € 285 million.
In March 2018, TINC successfully increased its share capital by issuing new shares equal to a third of the existing number. The capital increase involved a public offering to subscribe to 6.818.182 new shares in cash with nonstatutory preferential rights. The capital increase was fully subscribed at an issue price of € 11,40 per share. TINC raised an amount of € 77,7 million to fund its investment commitments. Also, the proceeds of the capital increase enable TINC to implement its strategy to further grow and diversify the portfolio.
Jean-Pierre Blumberg, Chairman of the Board of Directors: "Classic infrastructure assets such as participations in public private partnerships or renewable energy are in high demand, while the supply in TINC's historic core countries is often limited and fragmented. This results in a high price pressure with decreasing returns as a result. TINC remains fully active in the market, albeit with a high degree of discipline and focus, inspired by a healthy balance between risk and return in the long term. TINC continues enjoying of a healthy trend line supporting its investment ambitions and benefits from its increased strength and network in order to further diversify its portfolio within an evolving infrastructure landscape. TINC remains committed to this with the support of its staff and the trust of its shareholders."
| Period ending at: | June 30, 2018 | June 30, 2017 |
|---|---|---|
| (€) | 12 months | 12 months |
| Operating income | 22 610 538 | 13 807 391 |
| Interest income | 7 757 695 | 5 664 080 |
| Dividend income | 4 712 374 | 3 792 009 |
| Gain on disposal of investments | - | - |
| Unrealised gains on investments | 9 472 950 | 4 022 954 |
| Revenue | 667 518 | 328 347 |
| Operating expenses (-) | (5 612 935) | (2 909 246) |
| Unrealised losses on investments | (2 335 688) | (1 091 495) |
| Selling, General & Administrative Expenses | (3 238 639) | (1 658 805) |
| Other operating expenses | (38 608) | (158 946) |
| Operating result, profit (loss) | 16 997 603 | 10 898 145 |
| Finance income | 4 134 | 5 835 |
| Finance costs (-) | (68 703) | (25 740) |
| Result before tax, profit (loss) | 16 933 034 | 10 878 241 |
| Tax expenses (-) | 2 400 900 | (192 702) |
| Total Consolidated income | 19 333 934 | 10 685 539 |
| Total other comprensive income | - | - |
| Total comprehensive income | 19 333 934 | 10 685 539 |
| Earnings per share (€) |
| Weighted average number of ordinary shares | 22 215 285 | 17 241 594 |
|---|---|---|
| 2. Diluted earnings per share (**) | 0,87 | 0,62 |
| 1. Basic earnings per share (*) | 0,87 | 0,62 |
| Earnings per share (€) |
(*) Calculated on the basis of the weighted average number of ordinary shares
(**) 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.
| Period ending at: | June 30, 2018 | June 30, 2017 |
|---|---|---|
| (€) | 12 months | 12 months |
| I. NON-CURRENT ASSETS | 247 524 006 | 179 080 558 |
| Investments at fair value through profit and loss | 243 428 356 | 177 203 967 |
| Deferred taxes | 4 095 650 | 1 876 591 |
| II. CURRENT ASSETS | 78 149 120 | 60 290 045 |
| Trade and other receivables | 2 438 945 | 1 619 686 |
| Cash and short-term deposits | 75 710 174 | 58 670 359 |
| Other current assets | - | - |
| TOTAL ASSETS | 325 673 126 | 239 370 603 |
| Period ending at: | June 30, 2018 | June 30, 2017 |
|---|---|---|
| (€) | 12 months | 12 months |
| I. EQUITY | 325 071 849 | 238 792 421 |
| Issued capital | 163 496 956 | 122 622 636 |
| Share premium | 108 187 628 | 71 334 673 |
| Reserves | (284 416) | 1 884 907 |
| Retained earnings | 53 671 682 | 42 950 204 |
| II. LIABILITIES | 601 276 | 578 182 |
| A. Non-current liabilities | - | - |
| - | - | |
| B. Current liabilities | 601 276 | 578 182 |
| Financial liabilities | - | - |
| Trade and other payables | 598 789 | 387 117 |
| Income tax payables | 0 | 191 065 |
| Other liabilities | 2 487 | - |
| TOTAL EQUITY AND LIABILITIES | 325 673 126 | 239 370 603 |
| Issued capital |
Share premium |
Reserves | Retained earnings |
Equity | |
|---|---|---|---|---|---|
| As per June 30, 2017 | 122 622 636 | 71 334 673 | 1 884 907 | 42 950 204 | 238 792 421 |
| Total comprehensive income | - | - | - | 19 333 934 | 19 333 934 |
| Capital increase | 40 874 319 | 36 852 956 | - | - | 77 727 275 |
| Dividends to shareholders | - | - | - | (8 284 091) | (8 284 091) |
| Other changes | - | - | (2 169 324) | (328 365) | (2 497 689) |
| As per June 30, 2018 | 163 496 956 | 108 187 628 | (284 416) | 53 671 682 | 325 071 849 |
For comparison purposes, the following table shows the changes in equity during the previous financial year.
| Issued capital |
Share premium |
Reserves | Retained earnings |
Equity | |
|---|---|---|---|---|---|
| As per June 30, 2016 | 81 748 317 | 35 504 445 | 2 994 415 | 37 470 914 | 157 718 092 |
| Total comprehensive income | - | - | - | 10 685 539 | 10 685 539 |
| Capital increase | 40 874 319 | 35 830 228 | - | - | 76 704 548 |
| Dividends to shareholders | - | - | - | (4 738 636) | (4 738 636) |
| Other changes | - | - | (1 109 508) | (467 614) | (1 577 122) |
| As per June 30, 2017 | 122 622 636 | 71 334 673 | 1 884 907 | 42 950 204 | 238 792 421 |
| Period ending at: | June 30, 2018 | June 30, 2017 |
|---|---|---|
| (€) | 12 months | 12 months |
| Cash at beginning of period | 58 670 359 | 28 327 665 |
| Cash Flow from Financing Activities | 66 926 684 | 69 486 180 |
| Proceeds from capital increase | 77 727 275 | 76 704 548 |
| Capital repayment / decrease | - | - |
| Proceeds from borrowings | 6 000 000 | - |
| Repayment of borrowings | (6 000 000) | - |
| Interest paid | (11 667) | (20 915) |
| Dividends to shareholders | (8 284 091) | (4 738 636) |
| Other cash flow from financing activities | (2 504 833) | (2 458 817) |
| Cash Flow from Investing Activities | (45 832 679) | (36 387 889) |
| Investments | (65 459 234) | (47 515 921) |
| Repayment of investments | 7 523 072 | 1 428 905 |
| Interest received | 7 042 495 | 5 372 326 |
| Dividend received | 4 276 612 | 3 929 500 |
| Other cash flow from investing activities* | 784 377 | 397 300 |
| Cash Flow from Operational Activities | (4 054 189) | (2 755 596) |
| Management Fee | (3 280 395) | (2 168 676) |
| Expenses | (432 730) | (449 808) |
| Taxes paid | (341 065) | (137 113) |
| Cash at end of period | 75 710 174 | 58 670 359 |
* Costs related to the rights issue (including VAT)
Manu Vandenbulcke, CEO TINC T +32 3 290 21 73 – [email protected]
Bruno Laforce, Investor Relations TINC T + 32 3 290 21 73 – [email protected]
TINC is a listed investment company that participates in companies that realise and operate infrastructure. TINC holds a diversified investment portfolio of participations in public private partnerships, energy and demand based infrastructure, located in Belgium, the Netherlands and Ireland. This investment portfolio generates cash flows of a long-term sustainable nature, which form the basis for TINC's dividend policy. The participations are actively managed by an experienced team of investment and infrastructure professionals with offices in Antwerp and The Hague. TINC is listed on the regulated market of Euronext Brussels since May 12, 2015.
For more information please visit www.tincinvest.com.
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