12th Dec 2024 10:12
(Alliance News) - GCP Infrastructure Investments Ltd on Thursday said its net asset value total return and profit were down on the previous year but said it was encouraged by the UK government's infrastructure plans.
The Jersey-based investment fund, which specialises in UK infrastructure, said its NAV per share at September 30 was 105.22 pence, down from 109.79 pence at the same time in 2023.
GCP Infrastructure said its NAV total return for the 12 months that ended September 30 was 2.2%, down from 3.7% the previous year. The company said a higher rate environment and reduced demand from wealth and retail investors continued to weigh on the company's share price.
It paid a 7.0 pence dividend for the year, matching last year's dividend and meeting the board's target. The board set the same target for the forthcoming financial year.
The company also said it plans to resume its share buyback programme imminently and remains committed to returning at least GBP50 million to shareholders "in the near term".
The overall portfolio valuation at the end of the financial year was down 4.0% to GBP960.0 million from GBP1.0 billion last year.
GCP Infrastructure's total profit and comprehensive income for the year was down 37% to GBP19.5 million from GBP30.9 million in the previous year.
Despite the decline in returns, it said the new UK government's "ambitious infrastructure targets" offer opportunities for the future, with the focus on planning and the national wealth fund "particularly encouraging".
Chair Andrew Didham said: "The company has maintained its 14-year track record of delivering on its objectives of income generation, capital preservation and diversification for its shareholders...The board and the investment adviser are working closely to address the discount at which the shares trade through the execution of the company's capital allocation policy."
Shares in GCP Infrastructure were down 2.1% to 69.70 pence in London on Thursday morning.
By Michael Hennessey, Alliance News reporter
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