For the full BBPP Preliminary Results Statement 2006, please click Here

24.04.07

1. The Net Asset Value (“NAV”) referred to above and in the Investment Advisors’ Report differs from the basis of recording net assets as set out in the balance sheet included in the financial statements. The key differences being that the balance sheet reflects assets and liabilities valued initially on acquisition at fair value and subsequently at amortised cost and that the Net Asset Value includes the discounted cash flows associated with the Calderdale, Derby Schools 2 and Northampton PFI concessions, for which legal completion of the acquisition did not occur until 31 January 2007.
Net Asset Value as shown above is fair market valuation of the Group’s economic interests, calculated utilising discounted cash flow methodology, adjusted for EVCA (European Private Equity and Venture Capital Association) guidelines, a methodology considered appropriate, given the special nature of infrastructure investments. Estimated future cash flows accruing to each economic interest5 have been discounted using discount rates that reflect the risks associated with that interest.
The only current exception to this methodology is with respect to the valuation of the stapled units in RiverCity Motorway project. These have been valued using the closing share price at 31 December 2006 (‘market value’).
The Net Asset Value also includes:
- the Strathclyde and Hereford and Worcester senior debt interests which have been valued at the loan principal outstanding at 31 December 2006 plus the costs associated with terminating the underlying fixed interest rate arrangements at 9 October 2006.
- Cash, cash equivalents and assets and liabilities attributable to the Company and intermediate holding companies at 31 December 2006.
 

2. The Net Asset Value per Ordinary Share represents an increase of 3.56% compared to the anticipated Net Asset Value at launch of the Company’s prospectus on 11 October of 98.7 pence per share.
 

3. This increase in Net Asset Value represents the increase over the Net Asset Value as at 9 October 2006 of £296.1 million detailed in the Offer Prospectus.
 

4. Uncommitted cash available for investment comprises cash and cash equivalents at 31 December 2006 of £188 million less committed and project specific cash of £103 million and movements from that date.
 

5. The Groups’ economic interests at 31 December 2006 are set out in the Portfolio Interests section of the financial information.