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Event | Do you know the value of your business? It’s time you do!

BBGI is a diversified social infrastructure investment company, registered in Luxembourg, and a FTSE 250 constituent. Its portfolio consists of long-term and low-risk essential infrastructure investments, which deliver stable, predictable cashflows, with progressive dividend growth and attractive, sustainable returns. It focuses on enhancing the value of its investments, which are globally diversified within highly rated, investment-grade countries. Most of its investments are via Public, Private Partnerships (PPPs) or derivatives thereof. All of its investments are availability-based, not demand-based, supported by government-backed revenues; hence, the cashflow line is highly reliable.

  • Background: Central to BBGI’s business are its 55 essential, social infrastructure investments; they range from bridges in North America to a hospital facility in Australia. Crucially, BBGI’s equity investment portfolio comprises low-risk and public sector-financed, availability-based infrastructure investments.
  • Operations: BBGI’s main operating jurisdictions are in North America and the UK. Revenues from its investments are based on their availability – not demand; there is a bond-like predictability about future revenues. BBGI has just announced a planned 49% equity investment in the German A7 motorway project.
  • Valuation: BBGI has built up a very successful track record since its IPO in 2011, with total shareholder returns (TSRs) averaging 10.4% p.a. It has consistently traded at a considerable premium to NAV; the current premium is 22.2%. The shares yield 4.4%, based on the 2022 prospective 7.48p per share dividend.
  • Risks: All BBGI’s cashflows are from government or government-backed bodies, thereby reducing the counterparty risk factor considerably. Owing to the absence of demand-based investments, the impact of COVID-19 on BBGI’s finances and operations has been marginal.
  • Investment summary: In the quest for reliable dividends, institutional and retail investors may well focus on UK infrastructure investment companies (IICs), with their secure dividend profiles. The prospective sector yield is now below 5%. In its 2021 full-year results, BBGI confirmed its dividend targets – 7.48p per share for 2022, 7.63p per share for 2023 and 7.78p per share in 2024.
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