3i Infrastructure has reported a sharp fall in first-half profits, but raised its dividend and insisted it remains on course to hit its full-year targets.

The FTSE 250-listed investor said it generated a total return of £166 million in the six months to 30 September, down from £258 million in the same period last year. The return on opening net asset value was 4.5%, against 7.4% a year earlier, although the value of its portfolio continued to grow.

Dividend raised as cash income jumps

Total income and non-income cash rose 61% to £195 million, up from £121 million, helped in part by a £92 million distribution from portfolio company Joulz. The board declared an interim dividend of 7.15p a share, up 6.3% on last year's 6.725p, and said it remains on track to deliver a full-year dividend of 14.30p.

Targets unchanged after TCR sale

Net asset value rose to £3.84 billion at the end of September, with net asset value per share climbing to 416.4p from 405.2p at the end of March. The company said underlying earnings across its portfolio continued to grow at a double-digit rate, and it repeated its target of an 8% to 10% annual return.

The half year followed the completion in June of the sale of TCR, which generated about €1.1 billion in proceeds. 3i Infrastructure ended September with £269 million in cash and an undrawn £900 million credit facility, giving it about £1.2 billion of liquidity for further investment. The interim dividend will be paid on 11 January 2027 to shareholders on the register on 27 November.