Hounslow Highways Investment Limited

The results are for the year to 31 December 2024 On 30 August 2012 the Group entered into a contract (“the Contract”) with the Mayor and Burgesses of the London Borough of Hounslow (LBH) for the design, installation, operation and maintenance of highway infrastructure and facilities within the borough. The Contract is for a period of twenty five years from the commencement date (1 January 2013). Under the Contract the Group is obliged to design and build the highway infrastructure over a period of five years while also operating and maintaining it over the duration of the agreement. In return the Company is entitled to receive payments from LBH in the form of a unitary charge which is calculated by reference to the achievement of targets and the performance of duties. Funding has been provided through a secured loan from a banking syndicate which was drawn monthly, as required, through the construction part of the contract (the first five years). During 2016, the Group successfully completed an amendment and restatement of its credit agreement to take advantage of lower interest rate margins. During 2017, the Company successfully completed the fifth year of maintenance and operation, achieving the completion of the Core Investment Programme in line with the Contract. Following the completion of the Core Investment Programme, the Company has been operating in accordance with the Contract. The board of directors is satisfied with the overall performance for the period and the progress made to date. The Group is a special purpose vehicle formed to manage the Contract. Its non-financial objectives are, therefore, consistent with the objectives of the Contract. The Group will achieve these objectives by ensuring its compliance with the Contract, industry practice and legislation and by adhering to good industry practice in a manner consistent with safe operation at all times. The Group’s financial objective is to ensure compliance with the terms of its credit agreement, the most significant of which is debt service cover ratios.