UK shares hold back Utilico profit

The company has recorded an after-tax profit of $1.62 million for the six months to the end of December compared with a loss of $4.57 million last year.

It says major contributors to the improved performance were foreign currency gains of $1.66 million, investment realisations of $720,000 and equity accounted earnings of $240,000 from its half-ownership in Sea-Land Australia Terminal Services.

However the company also had unrealised investment losses of $1 million. This includes negative revaluation of its main investment in UK-based airport company TBI.

TBI's shares fell from 75.5 pence at the end of June to 65 pence at the end of December, a valuation drop of $1.65 million. Excluding TBI, the interim profit would have been $3.27 million.

In December Utilico made a capital repayment of 50c per redeemable shares on the redemption of 2 ordinary shares out of every 5 ordinary shares held in the company, and further capital returns to shareholders are planned.

The intention is for the company's investments to be scaled back as realisations permit although it admits there is some uncertainty both as to the timing of the realisations and the amount.

With the company's investment in TBI at nearly 50% of total assets it says there is considerable sensitivity to the average sale price of those shares.

"The Board's objective continues to be focussed on providing shareholders with the opportunity for a cash exit from UIL that is close to the realisable NTA," the company said in a statement.

No interim dividend will be paid.

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