NAV as at 31 May 2023 was £1.490 per share, representing an increase of 1.0p per share from the 30 April 2023 NAV of £1.480 per share. The change in NAV per share was primarily due to receipt of net interest income.

The Company intends to continue the rotation of the market bond portfolio into the funding of existing strong senior loans with attractive returns. As at 31 May the gross value of the bond portfolio was £33.4 million (30 April: £33.8 million). The Company expects to have closed out its bond position by the calendar year end.

At 31 May 2023, the Company's balance sheet leverage net of cash was 9.0% (30 April: 9.7%) and net effective leverage, including contingent liabilities being the partial recourse guarantees provided to certain asset level structured finance counterparties, was 10.0% (30 April: 10.8%).  Contingent liabilities represent 25% of asset level borrowings subject to partial recourse. At 31 May contingent liabilities were £3.6m (30 April: £3.6m).

The Company expects to deploy its currently available cash resources in near term commitments and continues to see a growing pipeline of senior loans at attractive floating rates.