GCP Infrastructure NAV down on lower electricity prices in first half

(Alliance News) - GCP Infrastructure Investments Ltd on Thursday reported a drop in net asset ...

Alliance News 10 June, 2021 | 9:49AM
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(Alliance News) - GCP Infrastructure Investments Ltd on Thursday reported a drop in net asset value for the first half of its financial year, driven by lower electricity prices.

FTSE 250-listed GCP focuses mainly on investments in UK infrastructure debt.

As at March 31, the trust's net asset value per share stood at 100.78 pence, down 8.2% from 109.83p on the same date a year before. For the six month-period, operating profit fell 71% year-on-year to GBP5.7 million from GBP19.7 million.

The weaker performance was due to downward revaluations of long-term electricity price forecasts, lower inflation forecasts from the Office for Budget Responsibility and an increase on the corporation tax rate from 2023.

Net assets at the end of March dropped 10% year-on-year to GBP887.6 million from GBP987.1 million.

GCP Infrastructure declared a 3.5 pence per share dividend for the interim, down 7.9% from 3.8p the prior year.

"It has been a challenging six months for the company, principally driven by revisions to long-term valuation assumptions largely driven by increase in the corporation tax rate, reduced long term electricity price forecasts and lower Office for Budget Responsibility inflation forecasts, over which we have no control. Overall, the company's portfolio has performed well during the period with limited disruption from the impacts of responses to the pandemic," said Chair Ian Reeves.

Shares in GCP Infrastructure Investments were up 0.2% at 97.80 pence on Thursday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
GCP Infrastructure Investment Ord 106.60 GBX -0.74 -

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