Full Year Results for the 12 Months to 31 Dec 15

Risk	Description	Mitigation/Approach
Macroeconomic Risks
Inflation	Inflation may be higher or lower than expected. Investment cash flows are positively correlated to inflation therefore increases/decreases to inflation compared to current projections would impact positively or negatively on the Company's future projected cash flows. Negative inflation (deflation) will reduce the Company's future cash flows in absolute terms. The Company's portfolio has been developed in anticipation of continued inflation at or above the levels used in the Company's valuation assumptions. Where inflation is at levels below the assumed levels investment performance may be impaired. The level of inflation linkage across the investments held by the Company varies and is not consistent. Some investments have no inflation linkage and some have a geared exposure to inflation. The consequences of higher or lower levels of inflation than that assumed by the Company will not be uniform across its portfolio. The Company is also exposed to the risk of changes to the manner in which inflation is calculated by the relevant authorities.	The Company monitors the effect of inflation on its portfolio through its twice yearly valuation process and reports on this to investors. The Company also provides sensitivities to investors indicating the projected impact on the Company's NAV of a number of alternative inflation scenarios, offering investors an ability to anticipate the likely effects of some inflation scenarios on their investment. The Company utilises a long-term view of inflation within its forecasts, benchmarked where possible to independent analysis.
Foreign Exchange Movements Reduction in overall exposure to foreign exchange originated assets mainly due to substantial increase in the NAV driven by new GBP investments and capital raised in the year.	The Company indirectly holds part of its investments in entities in jurisdictions with currencies other than Sterling but borrows corporate level debt, reports its NAV and pays dividends in Sterling. Changes in the rates of foreign currency exchange are outside the control of the Company and may impact positively or negatively on Company cash flows and valuation.	The Company uses forward foreign exchange contracts to mitigate the risk of short-term volatility in foreign exchange on significant investment returns from overseas investments. These may not be fully effective and rely on the strength of the counterparties to those contracts to be enforceable. The Company monitors the effect of foreign exchange on its portfolio through its twice yearly valuation process and reports this to investors. The Company also provides sensitivities to investors indicating the projected impact on the Company's NAV of a limited number of alternative foreign exchange scenarios, offering investors an ability to anticipate the likely effects of some foreign exchange scenarios on their investment.
Interest Rates	Changes in market rates of interest can affect the Company in a variety of different ways: Valuation Discount Rate The Company, in valuing its investments, uses a discounted cash flow methodology. Changes in market rates of interest (particularly government bond rates) may directly impact the discount rate used to value the Company's future projected cash flows and thus its valuation. Higher rates will have a negative impact on valuation while lower rates will have a positive impact.	In determining the discount rate used to value the Company's investments the Company generally uses nominal interest rates. Where the Company's cash investment inflows are linked to inflation, higher interest rates can often be precipitated by higher inflation expectations, and therefore any inflation linkage may partly mitigate the effect of interest rate changes
	Corporate Debt Facility The Company has a corporate level debt facility that may be drawn from time to time. Interest is charged on a floating rate basis, so higher than anticipated interest rates will increase the cost of this facility potentially adversely impacting on cash flow and the Company's valuation.	In the event that the interest rate increases then the Company has the option of repaying that facility at any time with minimal notice, providing sufficient funds are available.
	Cash Holdings The Company and underlying investment entities typically choose or can be required to hold various cash balances, including contingency reserves for future costs (such as major lifecycle maintenance or debt service reserves). These are generally held on interest bearing accounts and under the contractual terms applicable to certain investments which in many cases are projected to be held for the long term. The Company assumes that it will earn interest on such deposits over the long term. Changes in interest rates may mean that the actual interest receivable by the Company is less than projected. If the Company receives less interest than it projects this will impact cash flows and NAV adversely.	As presented in the sensitivity analysis, variations in cash deposit rates have little impact on the Company's NAV. Due to the spread of cash holdings within ringfenced SPV structures and relatively smaller balances in the SPV's, it is not economically feasible to hedge against adverse deposit rate movements. The Company monitors the effect of historical and projected interest rates on its portfolio through its twice yearly valuation process and reports this to investors. The Company also provides sensitivities to investors indicating the projected impact on the Company's NAV of a limited number of alternative scenarios, offering investors an ability to anticipate the likely effects of some deposit interest rate scenarios on their investment.
Taxation	Change in Legislation Changes in tax legislation across the multi-jurisdictions in which the Company has investments can reduce returns impacting on the Company's cash flow and valuation.	The diversified jurisdictional mix of the Company's investments may provide some mitigation to tax changes in any one jurisdiction.
Increased uncertainty over future tax policy across a number of geographies mainly driven by OECD recommendations on BEPS.	Change in Tax Rates Most recently the Company has benefited from reductions in the headline rates of UK corporation tax positively impacting its UK based investments, however there is a risk that this could be reversed if there were a change in government or policy. Such changes may occur in all jurisdictions in which the Company operates.	The Company believes it takes a conservative approach to tax planning. The Board monitors changes in tax legislation and takes advice as appropriate from external, independent, qualified advisers. Whilst the Board and the Company's Investment Adviser seek to minimise the impact of adverse changes in tax requirements, its ability to do so is naturally limited.
Base Erosion and Profit Shifting The OECD's Action Plan on Base Erosion and Profit Shifting ('BEPS'), published in 2013, seeks to address perceived flaws in international tax rules. It sets out 15 actions to counter BEPS in a comprehensive and coordinated way. These actions may result in fundamental changes to the international tax standards and potentially have unintended consequences for domestic tax standards too. If widely drawn they may have negative implications for the Company.	The Company's Investment Adviser has responded to the OECD BEPS consultation process but there can be no guarantee that any enactment of BEPS into national legislation within those countries where the Group operates will not have a negative impact, whether direct or indirect, on the Company's performance.
Accounting	Accounting changes can have the effect of reducing distributable profits in investee entities and holding entities and may impact the Company's cash flows and thus valuation adversely.	A significant portion of the Company's income is received in the form of shareholder debt interest income i.e. from pre-tax cash flows and therefore not constrained by distributable profits tests.
Risk	Description	Mitigation/Approach
Market Risk
Political and Regulatory Increasing pressures on public sector bodies globally have the potential to impact the infrastructure industry.	The nature of the businesses in which the Company invests exposes the Company to potential changes in policy and legal requirements. All investments have a public sector infrastructure service aspect. Some are subject to formal regulatory regimes. All are exposed to political scrutiny and the potential for adverse public sector or political criticism. Moreover all are either dependent ultimately on public sector expenditure or dependent on regulatory or other similar frameworks for most of their revenues. The Company is therefore potentially highly exposed to changes in policy, law or regulations including adverse or punitive changes of law.	The Company's existing investments mainly benefit from long-term service and asset availability based pricing contracts and the countries in which the Company operates do not tend to have a tradition of penal retrospective legislation. The countries where the Company operates tend to be long-term supporters of infrastructure and similar investment and recognise the risk of deterring future investment in the event that penal or disproportionate steps are taken in respect of existing contractual engagements.
Termination of Contracts Often contracts between public sector bodies and the Company's investment entities contain rights for the public sector to voluntarily terminate contracts in certain situations. Whilst the contracts typically provide for some compensation in such cases, this could be less than required to sustain the Company's valuation causing loss of value to the Company. There have been instances of contracts being voluntarily terminated in the UK (although not affecting the Company).	The Company maintains strong and positive relationships with its public sector clients where it can. The Company engages with its public sector clients in developing cost saving initiatives and acting as a 'good partner' where it can. None of the Company's investments have been identified, by any government audit or public sector report as being poor value-for-money or not in the public interest. The Investment Adviser is a signatory to the Code of Conduct for Operational PFI/PPP contracts in the UK. The voluntary code of conduct sets out the basis on which public and private sector partners agree to work together to make savings in operational Public PPP contracts. Compensation on termination clauses within such contracts serve to partially mitigate the risk of voluntary termination. Furthermore in the current financial climate where voluntary termination leads to a requirement to pay compensation such compensation is likely in many cases to represent an unattractive immediate call on the public finances for the public sector.
	Change in Law/Regulation Changes in law or regulation may increase costs of operating and maintaining facilities or impose other costs or obligations that indirectly adversely affect the Company's cash flow from its investments and/or valuation of them.	Some investments maintain a reserve or contingency designed to meet change in law costs and/or have a mechanism to allow some change in law costs (typically building maintenance related) to be passed back to the public sector.
	Change in Political Policy Political policy and financing decisions may also impact on relationships on existing investments and on the Company's ability to source new investments at attractive prices or at all.	Current policy trends in the UK and elsewhere continue to support the use of private sector capital to finance public infrastructure.
	UK European Union ('EU') Membership Impact resulting from 'in-out' referendum in respect of UK EU Membership on 23 June 2016.	Possible period of volatility in the months preceding the referendum due to uncertainty with respect to the outcome. If the UK were to exit the EU there is the potential for this to impact UK gilt rates and the credit rating of the UK Government and continuing market volatility, including stock markets. This could include a negative impact on Sterling however this could be partially mitigated by the Company's non-Sterling denominated projects.
	Change in Regulations The Company is subject to changes in regulatory policy that relate to its business and that of its Investment Adviser both in terms of its investments and in terms of itself. The Company is supervised by the Guernsey Financial Services Commission and is required to comply with the UK Listing Rules applicable to 'Premium' listings. The Investment Adviser is regulated by the Financial Conduct Authority in the UK in accordance with the Financial Services and Markets Act 2000.	The Company and its Investment Adviser monitor regulatory developments and seek independent professional advice in order to manage compliance with changing regulatory requirements.
	Recent Regulatory Changes Recent regulatory changes have included the transposition of the European Union's Alternative Investment Fund Managers Directive ('AIFMD') into UK and other EU countries national laws which will impact the Company by increasing its regulatory burden.	The Board considers the Company is self-managed (i.e. it is its own Alternative Investment Fund Manager ('AIFM')). It is therefore subject to a lighter regulatory regime than if it were to appoint an AIFM from within the EU. However it is not possible to entirely mitigate the risk the Company may be deemed or choose to be managed by an EU AIFM in the future.
Operational and Valuation Risk
Asset Performance	Asset Availability The Company's investments' entitlement to receive income is generally dependent on the underlying physical assets remaining available for use and continuing to meet certain performance standards. Failure to maintain assets available for use or operating in accordance with pre-determined performance standards may dis-entitle (wholly or partially) the continued receipt of income that the Company has projected to receive.	The Board reviews underlying investment performance of each investment quarterly allowing asset performance to be monitored in close to real time. Historically the Company has seen very high levels of asset performance which suggests a positive trend for the future. Contractual mechanisms also allow for significant pass-down of unavailability and performance risk to sub-contractors in many cases.
	Termination In serious cases where the terms of the underlying contract with the public sector are breached due to default or force majeure then that contract can usually be terminated without compensation. Failure to receive the amount of revenue projected or termination of a contract will have a consequential impact on the Company's cash flow and value.	In the event of significant and continuing unavailability across the Company's portfolio the Company is able to terminate the Investment Advisory Agreement. This serves to reinforce alignment of interest between the Company and the Investment Adviser.
Counterparty Risk New investment activity by the Company in the year has decreased the level of risk within the portfolio through diversification of counterparties.	The Company's investments are dependent on the performance of a series of counterparties to contracts including public sector bodies, construction contractors, facilities management and maintenance contractors, asset and investment managers (including the Investment Adviser), banks and lending institutions and others. Failure by one or more of these counterparties to perform their obligations fully or as anticipated could adversely affect the performance of affected investments. Replacement counterparties where they can be obtained may only be obtained at a greater cost. These risks would negatively impact the Company's cash flows and valuation.	The Company has a broad range of suppliers and believes that supplier counterparty risk is diversified across its investments. All contracts include the provision of a security package from counterparties to mitigate the impact of supplier failure. In addition, generally payments are made in arrears to service providers giving the Company some protection against failures in performance. The credit quality of supplier counterparties is reviewed as part of the Company's due diligence at the time of making its investments. Most of the services provided to the Company's investments are reasonably generic and therefore there can be expected to be a pool of potential replacement supplier counterparties in the event that a service counterparty fails albeit not necessarily at the same cost.
	Where borrowings exist in respect of the Company's investments, interest rates are generally fixed through the use of interest rate swaps. The Company is therefore exposed if the counterparties of these swaps were to default or the swaps otherwise become ineffective.	The credit risk of such swap counterparties is considered at the time of entering into these arrangements and are regularly reviewed. However, there is a risk of credit deterioration which could impact affected investments.
Physical Asset Risk	The Company indirectly invests in physical assets used by the public and thus is exposed to possible risks, both reputational and legal, in the event of damage or destruction to such assets and their users including loss of life, personal injury and property damage. While the assets the Company invests in benefit from insurance policies these may not be effective in all cases.	The Company's investments benefit from regular risk reviews and external insurance advice which is intended to ensure that those assets continue to benefit from insurance cover that is standard for such assets.
Contract Risk	The performance of the Company's investments is dependent on the complex set of contractual arrangements specific to each investment continuing to operate as intended. The Company is exposed to the risk that such contracts do not operate as intended, are incomplete, contain unanticipated liabilities, are subject to interpretation contrary to the Company's expectation or otherwise fail to provide the protection or recourse anticipated by the Company.	Such contracts have been entered into usually only after lengthy negotiations and with the benefit of external legal advice. A legal review of contract documentation is undertaken as part of the Company's due diligence at the time of making new investments.
Financial Forecasts	The Company's projections depend on the use of financial models to calculate future projected investment returns for the Company. These are in turn dependent on the outputs from other financial model forecasts at the underlying investment entity level. There may be errors in any of these financial models including calculation errors, incorrect assumptions, programming, logic or formulaic errors and output errors. Once corrected such errors may lead to a revision in the Company's projections for its cash flows and thus impact on its valuation.	Financial forecasts are generally subject to model audit by external accountancy firms which is a process designed to identify errors. The comparison of past actual performance of investments against past projected performance also gives confidence in financial models where actual performance has closely matched projected performance. However there can be no assurance that forecast results will be realised.
	Sensitivities The Company publishes information relating to its portfolio including projections of how portfolio performance and valuation might be impacted by changes in various factors e.g. interest rates, inflation, deposit rates etc. The sensitivity analysis and projections are not forecasts and actual performance is likely to differ (possibly significantly) from that projection as in practice the impact of changes to such factors will be unlikely to apply evenly across the portfolio or in isolation from other factors.	Sensitivities are produced for the information of investors and are accompanied by disclaimers and guidance explaining that limited reliance can be placed upon them.
Cyber-security Increasing levels of sophistication are being used in cyber-attacks targeting businesses.	Cyber-security is an issue of increasing relevance across all businesses as a response to the growing levels of sophistication being used in carrying out cyber-attacks targeting businesses. Cybercrime could impact the Company in a number of ways including financially, operationally or through reputational impact.	A number of control layers are in place across the Company structure to mitigate as far as possible against the risk of a cyber-security issue occurring in the Company's operational or investment activities.

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Energy transmission	29%
Education	23%
Transport	20%
Health	7%
Courts	6%
Waste Water	5%
Police	4%
Military Housing	3%
Other	3%

UK	71%
Belgium	11%
Australia	7%
Germany	4%
Canada	3%
US	3%
Ireland	1%
Italy	<1%

Construction	8%
Operational	92%
Primary Investor²	87%
Later Stage Investor³	13%

Risk capital only	84%
Company owns Risk Capital and Senior Debt	16%

100%	68%
50%-100%	4%
<50%	28%

Name of Project	Location	Sector	Status at 31 December 2015	% Holding at 31 December 2015	% Investment Fair Value 31 December 2015	% Investment Fair Value 31 December 2014
Lincs Offshore Transmission	Lincolnshire, England	Energy Transmission	Operational	100% Risk Capital¹	14.1%	16.3%
Diabolo Rail Link²	Brussels, Belgium	Transport	Operational	100% Risk Capital¹	11.4%	13.8%
Ormonde Offshore Transmission	Cumbria, England	Energy Transmission	Operational	100% Risk Capital¹and 100% senior debt	11.0%	12.5%
Angel Trains²	Various, United Kingdom	Transport	Operational	5% Risk Capital¹	4.9%	1.9%
Thames Tideway Tunnel²	London, United Kingdom	Waste Water	Under Construction	16% Risk Capital¹	4.9%	N/A
Royal Children's Hospital	Victoria, Australia	Health	Operational	100% Risk Capital¹	3.4%	4.5%
BeNEX Rail	Various, Germany	Transport	Operational	49% Risk Capital¹	2.9%	3.5%
Hereford & Worcester Courts	Worcestershire, England	Courts	Operational	100% Risk Capital¹and 100% senior debt	2.7%	3.2%
Northampton Schools	Northamptonshire England	Education	Operational	100% Risk Capital¹	2.7%	3.2%
US Military Housing²	Various, United States	Military Housing	Operational	100% Risk Capital¹	2.7%	N/A

	Strategic Priorities	Key Performance Indicator	2015 Performance
1	Focus on delivery of anticipated returns from existing investments - Actively manage investments to ensure that they meet financial and other targets	- Availability for all controlled investments at 98% or above - Returns from investments in line with expectations	- Achieved - Met 2015 net revenue generation and dividend goals
2	Maintain high levels of public sector satisfaction and asset performance	- Performance deductions below 3% for all projects	- Achieved
3	Deliver additional value from existing assets through management of construction risk and delivery of operational improvements to meet client requirements	- Number of change requests from existing contracts - Management of investments in the course of construction projects in line with overall delivery timetable	- Around 950 variation requests processed representing c. £10 million of the additional works at the project level - Works commenced on new construction projects in line with project timetables

Metric	31 December 2015	30 June 2015	31 December 2014	Movement 31 December 2014 - 31 December 2015
Weighted Average Government Bond Rate (Nominal) - portfolio basis - Risk Capital and senior debt	2.31%	2.12%	2.79%	(0.48%)
Weighted Average Project Premium over Government Bond Rate - Risk Capital and senior debt (Nominal)	5.22%	5.17%	4.69%	0.53%
Weighted Average Discount rate - Portfolio basis - Risk Capital and senior debt	7.53%	7.29%	7.48%	0.05%
Weighted Average Discount rate - Risk Capital only¹	8.09%	7.83%	7.90%	0.19%
NAV per share	130.2p	128.6p	127.0p	3.2p

	31 December 2015		31 December 2014		Movement (2014 -2015)
Country	Nominal	Real	Nominal	Real	Nominal	Real
UK	2.33%	(0.76)%	2.85%	(0.36%)	(0.52)%	(0.40)%
Australia	3.29%	1.00%	3.80%	1.41%	(0.51)%	(0.41)%
Europe¹	1.73%	(0.14)%	2.17%	0.25%	(0.44)%	(0.39)%
Canada	2.20%	0.55%	2.56%	0.57%	(0.36)%	(0.02)%
US	2.99%	1.18%	N/A	N/A	N/A	N/A
Portfolio weighted average	2.31%	(0.44)%	2.79%	(0.05%)	(0.48)%	(0.39)%

Summary of consolidated cash flow	Year to 31 December 2015 £ million	Year to 31 December 2014 £ million
Opening cash balance	29.4	80.6
Cash from investments	76.0	64.0
Operating costs (recurring)	(13.7)	(12.2)
Net financing costs	(3.5)	(1.9)
Net cash before non-recurring operating costs	58.8	49.9
Non-recurring operating costs	(2.8)	(5.0)
Net cash flow from operations	56.0	44.9
Cost of new investments	(143.1)	(188.2)
Net (repayment)/drawdown of corporate debt facility	(16.3)	16.3
Proceeds of capital raisings (net of costs)	195.0	94.2
Disposal proceeds	-	22.3
Distributions paid	(48.6)	(40.7)
Net cash at period end	72.4	29.4

Corporate Expenses	Year to 31 December 2015 £ million	Year to 31 December 2014 £ million
Management fees	(12.5)	(11.1)
Audit fees	(0.2)	(0.1)
Directors' fees	(0.2)	(0.2)
Other running costs	(0.8)	(0.8)
Operating costs (ongoing)	(13.7)	(12.2)

Ongoing Charges	Year to 31 December 2015 £ million	Year to 31 December 2014 £ million
Annualised Ongoing Charges¹	(13.7)	(12.2)
Average NAV²	1,143.3	983.5
Ongoing Charges	(1.20%)	(1.24%)

Asset	Location	Construction Completion Date	Defects Completion Year	Status	% of Fair Value of Investment
Priority School Building Aggregator Programme - 4 batches	UK	2018	2019	On Schedule	3.1%
Thames Tideway Tunnel	UK	2024	2027	On Schedule	4.9%
Victoria Schools PPP Project	Australia	2018	2019	On Schedule	N/A¹

Asset	Location	Acquisition/ Divestment	Operational Status	Investment/ Commitment	Acquisition date
Priority School Building Aggregator Programme - Batch 1	North East, UK	Acquisition	Under construction	£7.9 million	10 March 2015
Priority School Building Aggregator Programme - Batch 2	Hertfordshire, Luton and Reading, UK	Acquisition	Under construction	£10.2 million	19 March 2015
Priority School Building Aggregator Programme - Batch 3	North West, UK	Acquisition	Under construction	£8.4 million	25 March 2015
Building Schools for the Future	Lewisham, UK	Acquisition	Operational	£14.3 million	17 April 2015
Liverpool Central Library	Liverpool, UK	Acquisition	Operational	£1.9 million	30 June 2015
Priority School Building Aggregator Programme - Batch 4	Midlands, UK	Acquisition	Under construction	£9.8 million	13 August 2015
Thames Tideway Tunnel	London, UK	Acquisition	Under construction	Up to £210 million¹	24 August 2015
US Military Housing P3	Various, US	Acquisition	Operational	£31.7 million	4 October 2015
Victoria Schools PPP Project	Victoria, Australia	Acquisition	Under construction	£17.5 million¹	28 October 2015
Post 31 December 2015
Westermost Rough OFTO	Yorkshire, UK	Acquisition	Operational	£26.8 million	3 February 2016

Current Projects	Location	Estimated Investment Opportunity/Project Capital Value	Expected Concession Length	Project Status
Priority Schools Building Aggregator Programme	UK	Up to £7 million¹	25 years	Remaining investment expected to be made in early 2016
Thames Tideway Tunnel	UK	Up to £151 million investment commitment remaining¹	120 years	The Company is part of the Bazalgette consortium awarded licence to own and finance project. Investment in phases until early 2018
Education projects	UK	£8 million¹	c.25 years	Investment in existing projects, some pre-emptive
HUB framework projects	UK	£132 million²	c. 25 years	Hub framework for various Scottish social community
Transportation project	Australia	£133 million²	c. 15 years	Follow-on investment in existing project
Police Centre	Germany	c.£6 million¹	c.32.5 years	Named as preferred bidder

<20 years	52%
20 - 30 years	24%
>30 years	24%

Director	2015 Fees paid/accrued¹ £	2014 Fees paid £
Rupert Dorey²	70,000	60,000
Giles Frost³	42,000	32,000
John Whittle⁴	60,000	50,000
Claire Whittet	47,500	37,500
John Stares	47,500	37,500
John Le Poidevin⁵	-	-

Director	31 December 2015 Number of Ordinary Shares¹	31 December 2014 Number of Ordinary Shares¹
Rupert Dorey²	793,687	643,687
Giles Frost	448,745	298,745
John Whittle³	52,198	40,256
Claire Whittet³	50,000	-
John Stares	75,000	-
John Le Poidevin4	N/A	N/A

Directors	Quarterly Board	Ad-hoc Board	Audit and Risk Committee	Management Engagement Committee	Investment Committee	Remuneration and Nomination Committee
Maximum number.	4	6	5	1	10	2
Rupert Dorey	4	6	5	1	10	2
Giles Frost1	4	1	N/A	N/A	N/A	N/A
John Whittle	4	5	5	1	10	2
Claire Whittet	4	4	5	1	9	2
John Stares	4	5	5	1	9	2
John Le Poidevin²	N/A	N/A	N/A	N/A	N/A	N/A

Other/medium-term opportunities
Judicial	Netherlands	c.£66 million²	c. 25 years	The Company is involved in a number of ongoing bids for projects
Healthcare	Austria	£57 million²	c. 25 years
Transportation	Australia	£56 million¹	c. 20 years
Accommodation	Australia, Germany	£233 million²	c. 20 years
OFTOs	UK	£250 million²	20 years

Name of holder	% Issued Capital	No. of Ordinary Shares	Date notified
Schroder plc	13.97%	116,774,275	4 Dec 2014
Investec Wealth & Investment Limited	9.85%	97,616,757	19 Nov 2015

Risk	Misstatement or manipulation of investment fair value Investments comprise a portfolio of assets measured at fair value through profit or loss. The fair values of these investments are determined using the income approach which discounts the expected cash flows at a rate appropriate to the risk profile of each investment. In determining the discount rate, the relevant long-term government bond yields, specific investment risks and the evidence of recent transactions are considered. Details of the valuation process and key sensitivities are provided in note 12 of the financial statements and are discussed in the report of the Audit Committee on page 53 - 55. The valuation risk includes the risk of an inappropriate valuation model being applied including the risk of manipulation or error in both the assumptions applied and the amount and timing of expected cash flows.
Our response to the risk	We have tested the effectiveness of controls in operation over the investment acquisitions, forecasting cash flows, distributions and model integrity and we have placed reliance on control over these processes. We selected a sample of investments to provide coverage over the key geographies the Group operates in and to address significant demand risk and performed the following procedures : Valuation assumption: We engaged our EY valuation specialists to assess the discount rates (sub-debt and equity and senior debt), inflation rates and deposit rate assumptions used in the models by comparing these to market data. Model integrity: We engaged our EY financial modelling specialists to sample test the logical operation of the financial models. Model inputs: We agreed a sample of contractual cash flows to contractual terms and actual cash flows. We engaged EY valuation specialists to assess demand based cash flows which require significant judgement. For all other investments we performed the following procedures: - We tested historical accuracy of forecasting by comparing the historical forecast distributions from the projects to the actual distributions. - We developed our own expectations for changes in investment values. For each investment outside our expected range we obtained and corroborated reasons for the difference. - Consistency of assumptions: We tested that material macro-economic assumptions (discount rates, inflation rates, foreign exchange rates, deposit rates and tax rates) were applied consistently to each investment.
What we concluded to the Audit Committee	We confirmed that there were no matters arising from our work that we wanted to bring to the audit committees attention.
Risk	Revenue Recognition For the purposes of our risk assessment, dividend and interest income is treated as 'revenue' and as it is material we have treated 'revenue recognition' as a significant risk. Given the nature of the work we previously performed and the sources of revenue the impact of increasing our risk assessment on our audit strategy was limited. Management may seek to inflate revenue in order to improve the Group's reported performance.
Our response to the risk	We updated our understanding of the Group's processes and policies for revenue recognition including our understanding of the systems and controls implemented; and We agreed a sample of dividend and interest receipts to documentation from investees and we checked the calculation of interest amounts and the allocation thereof to the appropriate period.
What we concluded to the Audit Committee	We confirmed that there were no matters identified during our audit work on revenue recognition that we wanted to bring to the attention of the audit committee.

	Notes	Year ended 31 December 2015 £'000s		Year ended 31 December 2014 £'000s
Interest income	4	44,026		32,200
Dividend income	4	16,397		23,605
Net change in fair value of investments at fair value through profit or loss	4	39,784		32,187
Realised gain on disposal of investments	4,5	-		2,104
Total investment income		100,207		90,096
Other operating income/(expense)	6	1,276		(599)
Total income		101,483		89,497

Management costs	18	(13,470)		(11,608)
Administrative expenses		(1,181)		(930)
Transaction costs	7	(2,145)		(2,874)
Directors' fees		(231)		(248)
Total expenses		(17,027)		(15,660)
Profit before finance costs and tax		84,456		73,837

Finance costs	9	(4,523)		(2,668)
Profit before tax		79,933		71,169

Tax credit	10	1,926		2,042
Profit for the year		81,859		73,211

Earnings per share
From continuing operations
Basic and diluted (pence)	11	9.54	9.49

	Notes	Share capital	Other distributable reserve	Retained earnings	Total
		£'000s	£'000s	£'000s	£'000s
Balance at 31 December 2014		625,289	182,481	254,298	1,062,068

Total comprehensive income		-	-	81,859	81,859

Issue of Ordinary Shares	16	203,207	-	-	203,207
Issue costs applied to new shares	16	(3,134)	-	-	(3,134)
Distributions in the year	16	-	-	(53,798)	(53,798)
Balance at 31 December 2015		825,362	182,481	282,359	1,290,202

	Notes	31 December 2015 £'000s	31 December 2014 £'000s
Non-current assets
Investments at fair value through profit or loss	12	1,201,107	1,032,941
Total non-current assets		1,201,107	1,032,941
Current assets
Trade and other receivables	12,14	23,099	19,529
Cash and cash equivalents	12	72,391	29,391
Derivative financial instruments	12	1,719	2,948
Total current assets		97,209	51,868
Total assets		1,298,316	1,084,809

Current liabilities
Trade and other payables	12,15	8,114	6,414
Total current liabilities		8,114	6,414


Non-current liabilities
Bank loans	9,12	-	16,327
Total non-current liabilities		-	16,327
Total liabilities		8,114	22,741
Net assets		1,290,202	1,062,068

Equity
Share capital	16	825,362	625,289
Other distributable reserve	16	182,481	182,481
Retained earnings	16	282,359	254,298
Equity attributable to equity holders of the parent		1,290,202	1,062,068
Net assets per share (pence per share)	17	130.2	127.0

	Notes	Year ended 31 December 2015 £'000s	Year ended 31 December 2014 £'000s
Profit from operations		81,859	73,211
Adjusted for:
Gain on investments at fair value through profit or loss	4	(39,784)	(32,187)
Unrealised exchange loss/(gain)		665	(528)
Finance costs	9	4,523	2,668
Net income tax credit	10	(1,926)	(2,042)
Fair value movement on derivative financial instruments	6,12	1,229	716
Realised gain on disposal of investments	5	-	(2,104)
Working capital adjustments
Increase in receivables		(6,146)	(5,830)
Increase in payables		1,700	80
		42,120	33,984
Income tax received¹		2,662	1,033
Net cash inflow from operations		44,782	35,017

Investing Activities
Acquisition of investments at fair value through profit or loss	13	(143,077)	(188,228)
Net repayments from investments at fair value through profit or loss		14,695	11,628
Cash received from disposal of investments	5	-	22,332
Net cash outflow from investing activities		(128,382)	(154,268)

Financing Activities
Proceeds from issue of shares net of issue costs	16	195,002	94,208
Dividends paid	16	(48,587)	(40,742)
Finance costs paid		(3,482)	(1,879)
Net loan (repayments)/drawdowns	9,12	(16,327)	16,327
Net cash provided by financing activities		126,606	67,914


Net increase/(decrease) in cash and cash equivalents		43,006	(51,337)
Cash and cash equivalents at beginning of year		29,391	80,609
Exchange (loss)/gain on cash and cash equivalents		(6)	119

Cash and cash equivalents at end of year²		72,391	29,391

				Year ended 31 December 2015
	UK £'000s				Europe Non UK £'000s		North America £'000s		Australia £'000s		Total £'000s
Segmental results
Dividend and interest income	46,088				6,983		2,717		4,635		60,423
Fair value gain/(loss) on investments¹	55,429				(7,045)		(3,495)		(5,105)		39,784
Total investment income/(loss)	101,517				(62)		(778)		(470)		100,207
Reporting segment profit/(loss)²	81,893				(111)		53		24		81,859
Segmental financial position
Investments at fair value	845,746				202,968		67,023		85,370		1,201,107
Current assets	97,209				-		-		-		97,209
Total assets	942,955				202,968		67,023		85,370		1,298,316
Total liabilities	(8,114)				-		-		-		(8,114)
Net assets	934,841				202,968		67,023		85,370		1,290,202

			Year ended 31 December 2014
		UK £'000s	Europe Non UK £'000s			North America £'000s		Australia £'000s		Total £'000s
Segmental results
Dividend and interest income		47,798	1,178			1,906		4,923		55,805
Fair value gain/(loss) on investments		8,272	16,994			(1,787)		8,708		32,187
Realised gain on disposal of investments		2,103	1			-		-		2,104
Total investment income		58,173	18,173			119		13,631		90,096
Reporting segment profit²		41,336	17,792			184		13,899		73,211
Segmental financial position
Investments at fair value		690,071	210,962			38,858		93,050		1,032,941
Current assets		51,868	-			-		-		51,868
Total assets		741,939	210,962			38,858		93,050		1,084,809
Total liabilities		(22,741)	-			-		-		(22,741)
Net assets		719,198	210,962			38,858		93,050		1,062,068

	Year ended 31 December 2015 £'000s	Year ended 31 December 2014 £'000s
Interest income
Interest on investments	43,984	31,862
Interest on bank deposits	42	338
Total interest income	44,026	32,200

Dividend income	16,397	23,605
Net change in fair value of financial assets at fair value through profit or loss	39,784	32,187
Realised gain on disposal of investments (see note 5)	-	2,104
Total investment income	100,207	90,096

	Year ended 31 December 2015 £'000s	Year ended 31 December 2014 £'000s
Fair value loss on foreign exchange contracts	(1,229)	(716)
Other gains on foreign exchange movements	2,505	117
Total operating income/(expense)	1,276	(599)

Full Year Results for the 12 Months to 31 Dec 15

Portfolio

Shareholder Returns

Governance

Market Information

Investment Adviser Fees

Dear Shareholders,

Dividend Growth

Investment Activity and Capital Raising

Operational Highlights and Portfolio Performance

Corporate Governance and Regulation

Outlook

Rupert Dorey

23 March 2016

Chairman

Investment Objectives

Investment Policy

Portfolio composition

Investment restrictions

Managing conflicts of interest

Financial management

Changes to investment policy

Key Aspects of the Operating Model

Relationship with the Investment Adviser and its group

Board and Committees

Investment Adviser

Contractual arrangements and fees

Group Structure

Investment entity asset management

Investment origination

Differentiation of Operating Model

Key Performance Indicators

Profits and Distributions

Total Shareholder Return

Net Asset Valuation

Investment Valuation

Forecast future cash flows

Portfolio Performance and Return

Macroeconomic assumptions

Discount rates

Portfolio level assumptions underlying NAV calculation

Sensitivities for key macroeconomic assumptions and discount rates

Discount rates

Inflation

Foreign exchange

Deposit rates

Tax rates

Project Lifecycle Spend

Future group tax relief

Cash flow movements in the period

Corporate expenses and ongoing charges

Priority Schools Building Programme 'Aggregator'

Additional investment in Lewisham Building Schools for the Future ('BSF') project

Additional investment in Liverpool Central Library project

Thames Tideway Tunnel project

US Military Housing P3

Victoria Schools PPP Project

Westermost Rough offshore transmission project ('OFTO')

United Kingdom

Australia

Europe - excluding UK

United States

Other Countries

Current Pipeline

Rupert Dorey John Whittle

Risk Management and Internal Controls

Risk framework and systems of internal control

Risk identification

Risk assessment

Action plans to mitigate risk

Re-assessment and reporting of risk

Viability Statement

Introduction

Compliance with Corporate Governance Codes

1. The role of the Chief Executive and Executive Directors' remuneration

2. Re-election of all Directors

The Board of Directors

Board Tenure and Re-election

Directors' Duties and Responsibilities

Board Diversity

	Year ended 31 December 2015 £'000s	Year ended 31 December 2014 £'000s
Investment advisory costs	2,145	2,818
Legal and professional costs	-	56
Total transaction costs	2,145	2,874

	Year ended 31 December 2015 £'000s	Year ended 31 December 2014 £'000s
Fees payable to the Group's auditor for the audit of the Group's financial statements	250	93

Fees payable to the Group's auditor and their associates for other services to the Group
- The audit of the Group's consolidated subsidiaries	42	9
- The audit of the Group's unconsolidated subsidiaries	320	339
- Audit related assurance services	35	20
Total audit fees	647	461
Other fees
- Regulatory reporting	-	49
- Other services	80	9
Total non-audit fees	80	58

	Year ended 31 December 2015 £'000s	Year ended 31 December 2014 £'000s
Current tax:
UK corporation tax credit - current year	(2,030)	(2,189)
UK corporation tax - prior year	4	(63)
Overseas tax - current year	100	210
Tax credit for the year	(1,926)	(2,042)

	Year ended 31 December 2015 £'000s		Year ended 31 December 2014 £'000s
Earnings for the purposes of basic and diluted earnings per share being net profit attributable to equity holders of the parent	81,859		73,211
	Number		Number
Number of shares
Weighted average number of Ordinary Shares for the purposes of basic and diluted earnings per share	857,859,876		771,578,934
Basic and diluted (pence)	9.54	9.49

	31 December 2015 £'000s	31 December 2014 £'000s
Investments at fair value through profit and loss¹	1,201,107	1,032,941
Financial asset loans and receivables
Trade and other receivables	23,099	19,529
Cash and cash equivalents	72,391	29,391
Derivative financial instruments
Currency swaps	1,719	2,948
Total financial assets	1,298,316	1,084,809

	31 December 2015 £'000s	31 December 2014 £'000s
Financial liabilities at amortised cost
Trade and other payables	8,114	6,414
Bank loans	-	16,327
Total financial liabilities	8,114	22,741

	31 December 2015 £'000s	31 December 2014 £'000s
Cash
Euro	871	2,263
Canadian Dollar	1,107	824
Australian Dollar	11	1
US Dollar	3	-
	1,992	3,088
Current receivables
Euro receivables	393	407
	393	407
Investments at fair value through profit or loss
Euro	202,968	210,962
Canadian Dollar	34,819	38,858
Australian Dollar	85,370	93,050
US Dollar	32,204	-
	355,361	342,870
Total	357,746	346,365

	UK	Europe Non UK	North America	Australia
Inflation	2.75%	1% in 2016; 2% thereafter	2.00%	2.50%
Long-term tax	20% - 18%	12.50% - 33.99%	26.00% - 27.00%	30%
Foreign exchange rates	N/A	1.28	1.49-2.02	2.13
Long-term deposit rates	3.00%	3.00%	3.00%	4.50%

Valuation Methodology	31 December 2015	31 December 2014	Movement
Weighted Average Government Bond Rate	2.31%	2.79%	(0.48%)
Weighted Average Project Premium	5.22%	4.69%	0.53%
Weighted Average Discount Rate	7.53%	7.48%	0.05%

Weighted Average Discount Rate¹	8.09%	7.90%	0.19%

Reconciliation of Level 3 fair value measurements of financial assets:	£'000s
Balance at 1 January 2015	1,032,941
Additional investments during the year	143,077
Net repayments during the year	(14,695)
Net change in fair value of investments at fair value through profit or loss	39,784
Balance at 31 December 2015	1,201,107