On 12 April 2022, we were excited to welcome BBGI, a leading member of the FTSE 250 Index, for a webinar on Hardman Talks. By way of background, BBGI is a responsible, global social infrastructure investor with a low-risk investment strategy, which is focused on delivering long-term and attractive returns: currently, it is capitalised at ca.£1.2bn. BBGI’s main investment markets are North America and the UK.
In the webinar, Co-Chief Executives, Duncan Ball and Frank Schramm, delivered a fluent and persuasive presentation of BBGI’s ongoing strategy; they also explained how BBGI’s operating model has been so successful since its IPO in 2011. In the intervening decade, total shareholder returns (TSR) have averaged 10.4% per year, whilst dividends have risen by 3.3% per year on average over the same period. Furthermore, in its recent 2021 results, BBGI confirmed a net cash balance of £26.9m.
After the presentation, management answered questions from the audience both on operational and financial issues.
Just over one-third of BBGI’s business is undertaken in North America with a further third in the UK – road and bridge projects are key to BBGI’s investment portfolio. Healthcare, blue light and modern correctional facilities, as well as education, also feature prominently. Crucially, all BBGI’s revenues derive from secure public sector-backed contracted revenues, which are availability-based – and not demand-based – thereby reducing its risk factor.