RM Infrastructure Income PLC on Monday said it increased its cash position over the first half of the year, in order to facilitate planned tender offers for its shares beginning later this year.

The Edinburgh-based investor in secured debt instruments of UK small and medium sized enterprises has been working towards a managed wind-down of the company following shareholder approval in December.

Net asset value per share stood at 87.84 pence on June 30, down 1.2% from 88.88p at December 31.

NAV total return for the six month period was 2.5% compared with 2.7% the previous year.

RM Infrastructure announced a dividend of 1.625p for the second quarter thus maintaining its first-half dividend unchanged at 3.25p per share.

Chair Norman Crighton said: ‘Our intention is to undertake a series of tender offers for shares when there are sufficient cash balances to make these tender offers cost effective. As this process is relatively costly, the board has decided to plan to undertake one tender offer later in 2024 and likely two tender offers during 2025; however this is contingent on loan repayments which are expected by the investment manager and could be subject to change if such loans do not repay as expected or if recoveries take longer than envisaged.’

RM Infrastructure increased its balance of cash and cash equivalents to £15.9 million from £880,000. This largely reflects five loan repayments totalling £14 million from the portfolio over the period.

‘The macro outlook appears to be more constructive for those borrowers seeking refinance as 3 and 5 year yields have fallen due to market expectations on the likely timings and trajectory of interest rates. This is helpful although set against this we expect credit spreads to widen so all in funding costs could remain neutral,’ RM Infrastructure said.

Shares were down 1.9% to 73.00 pence each in London on Monday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.