GCP Infrastructure Investments Ltd on Wednesday said net asset value and profit decreased in its latest financial year, as economic and political volatility continued to hurt UK markets.
The Jersey-based investment fund, which specialises in UK infrastructure, said its NAV per share at September 30 was 109.79 pence, down from 112.80p at the same time in 2022.
Shares in GCP Infrastructure were trading 1.1% higher at 67.15p on Wednesday morning in London.
GCP Infrastructure said its NAV total return for the year that ended on September 30 was positive 3.7%, down from positive 15.8% the previous year and amid ‘a challenging macroeconomic backdrop’ and its stock price coming ‘under pressure’.
‘The wider financial market in which the company operates has continued to face significant challenges,’ explained Chair Andrew Didham. ‘Against a backdrop of increased inflation, higher interest rates and high energy prices, the company has continued to deliver stable and predictable income for shareholders through its focus on debt investments in infrastructure assets vital to the efficient operation of modern society.’
GCP Infrastructure said it has paid a 7.0p dividend in respect of financial 2023, unchanged from the prior year. It intends to redistribute the same amount for the 12 months ending on September 30, 2024.
The company’s total profit and comprehensive income for the year was £30.9 million, down from £140.3 million. GCP Infrastructure said this was mainly due to investment revaluations during the period, although there was a combination of factors including lower electricity generation and prices.
One of the year’s highlights, GCP Infrastructure added, was adopting a capital allocation policy realising around 15% or £150 million of its portfolio to rebalance sectors and reduce equity exposures. It intends to apply these funds towards a material reduction in its revolving credit facility, and to returning at least £50 million to shareholders before the end of calendar 2024.
‘The board and the investment adviser are committed to the company’s intentions to re-allocate capital towards reducing gearing, buying back shares while they remain an attractive investment opportunity and disposing of assets to rebalance the portfolio and generate funds,’ Didham commented.
He added: ‘The board believes that this capital allocation policy will underline the company’s position as a leading investor in infrastructure debt, with a strong focus on sustainable investments.’
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