GCP Infrastructure Investments Portfolio Performs Well In First Half

LONDON (Alliance News) - GCP Infrastructure Investments Ltd said Thursday its net asset value was ...

Alliance News 23 May, 2019 | 9:26AM
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LONDON (Alliance News) - GCP Infrastructure Investments Ltd said Thursday its net asset value was stable in the first half of its financial year, on a portfolio that performed "well".

At March 31, the infrastructure debt investor's NAV per share stood at 112.54 pence, marginally higher than the 112.49p seen at September 30.

The company's net assets ended the first half at GBP987.1 million, slightly higher than the GBP985.5 million reported at the open of the half.

"Reduced public sector support and regulatory challenges for existing investment sectors is limiting the pool of primary investment opportunities available to the company. However, the secondary investment markets in existing asset classes remain active. By explicitly targeting a diversified portfolio of underlying assets, the company remains well positioned to benefit from any new public sector infrastructure support," said Chair Ian Reeves.

In the six months to March 31, GCP Infrastructure declared dividends of 3.80p, flat on the company's dividends paid last year.

The closed-ended investment firm advanced loans totalling GBP39.1 million in the first half, secured against UK renewable energy, social housing and private finance initiative projects. In total, GCP Infrastructure now has 47 investments with an annualised yield of 8.1%.

The company's portfolio - which is partially inflation protected - was valued at GBP1.1 billion at March 31, ahead of the GBP1.0 billion valuation the year prior.

Reeves added: "The investment portfolio has performed well, with no additional material operational or performance issues in the period. The company continues to work with a certain number of investee companies to resolve historic contractual and performance issues; as well as working more widely across the portfolio to seek ways to improve the debt characteristics of senior and subordinated positions and the return on shareholder interests."

About half of the company's portfolio is made up of Solar and private finance initiative projects.

GCP Infrastructure reported a profit of GBP33.6 million in the first half, down 15% year on year, on a total income of GBP41.2 million, which was 10% lower year on year.

Looking forward, GCP Infrastructure said government and regulatory involvement "continue to be a strong theme in the infrastructure sector".

Commenting on the risks posed by Brexit, the company said the "impact is expected to be greatest in the event of a hard, no-deal scenario which may affect the cost and-or availability of European supply chains for infrastructure projects that rely on their ongoing operations and maintenance; and the operations of the single electricity market in Northern Ireland and the Republic of Ireland."

GCP Infrastructure said any negotiated Brexit "is likely to have a limited impact".

Shares in GCP Infrastructure Investments were trading flat Thursday morning at 126.60 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
GCP Infrastructure Investment Ord 126.80 GBX -0.16 -
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