20th Jun 2024 12:08
(Alliance News) - GCP Infrastructure Investments Ltd on Thursday acknowledged the impact of uncertainty on its performance, after reporting hits to income and profit in the first half of the year.
At March 31, the Jersey-based investment company, which is focused on infrastructure, reported a net asset value per share of 107.62 pence, down 4.1% from 112.24p a year prior.
Shares in GCP Infrastructure were trading 0.1% higher at 77.31 pence each in London on Thursday morning.
NAV total return was positive 1.2% for the six months to March 31, versus positive 2.7% the previous year.
Total income was GBP19.9 million, down 44% from GBP35.6 million, while total profit and comprehensive income came to GBP9.9 million, down 62% from GBP25.8 million.
According to GCP Infrastructure, this drop in profit was driven by the impact of lower electricity prices and increases to discount rates applied by its independent valuation agent.
Total operating profit before finance costs was GBP14.3 million, down 52% from GBP29.9 million the year before.
At March 31, GCP Infrastructure's net assets amounted to GBP933.9 million, down 5.8% from GBP991.9 million.
Looking ahead, GCP Infrastructure said that it was focused on its capital allocation policy in the short term. It explained that while the aim of the policy "is to reduce leverage and return capital to shareholders, the company is confident that, once it recommences actively investing, there are significant opportunities to rebalance the portfolio".
"The positive outlook for inflation has increased in the period, with interest rates expected to start decreasing this calendar year. However, uncertainty remains as to when exactly this will occur," added Chair Andrew Didham.
GCP Infrastructure also declared a dividend of 3.5p, unchanged from a year prior.
By Holly Beveridge, Alliance News senior reporter
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