Infratil Ltd said its shareholders had a gain of 22.5% a year over the last year as the company's share price rose from $1.46 to $1.72 and fully imputed dividends of 6.25c a share were paid.The Wellington-based infrastructure investment company manag
Infratil Ltd said its shareholders had a gain of 22.5% a year over the last year as the company's share price rose from $1.46 to $1.72 and fully imputed dividends of 6.25c a share were paid.
The Wellington-based infrastructure investment company managed by Morrison&Co aims to make a 20% after-tax return over the long term through capital appreciation and dividends.
An investor who acquired $100 of shares on April 1, 1994 when Infratil was listed and had subsequently reinvested all dividends and distributions would have had a holding worth $1360 as at March 31, 2010, the company said in its annual report.
The company has produced a compound after tax return of 17.7% per annum over the 16 years. As at March 30, Infratil had 28,000 share and bond holders. From July, Infratil will also be listed on the Australian Securities Exchange.
Infratil said that infrastructure will be privately financed in future because governments' pockets are empty.
The last decade was a period when governments everywhere were awash with tax revenues and there was relatively easy funding for infrastructure and officials.
The UK Treasury chief secretary talked of an age of austerity in public finances in a recent interview.
"Australia has embraced private provision of infrastructure and while New Zealand has been slower getting started greater government willingness to work with the private sector can be expected if the alternative is communities with inadequate or substandard facilities," Infratil said.
The company's share price closed at $1.61 today.
