17th Dec 2020 11:49
(Alliance News) - GCP Infrastructure Investments Ltd on Thursday reported a drop in net assets at the end of its financial year, blaming decreases in electricity prices.
GCP Infrastructure Investments focuses primarily on investments in UK infrastructure debt.
At September 30, GCP Infrastructure's net asset value per share stood at 103.99 pence each, down 6.9% from 111.66p the year before.
The trust's pretax profit for the year ended September 30 swung to a GBP726,000 loss from a GBP59.1 million profit the year prior, primarily due to downward revaluations in respect of lower long-term electricity price forecasts, it said.
GCP Infrastructure's net assets at September 30 were GBP914.8 million, down 6.7% from GBP980.1 million a year prior.
GCP Infrastructure declared a final dividend of 7.6p per share, unchanged for the past two years.
Chair Ian Reeves said: "The period has seen significant falls in central bank interest rates, leading to sustained low interest rates in the market, the rapid development of infrastructure as an alternative asset class, and the maturing of certain renewables technologies, all of which has contributed to yield compression.
"Having provided shareholders with regular and stable income notwithstanding these changes, and more recently the Covid-19 pandemic, is a significant achievement."
Additionally, GCP Infrastructure said David Pirouet will step down as director after the conclusion of its annual general meeting in February 2021.
Steven Wilderspin, current chair of HarbourVest Global Private Equity Ltd's audit and risk committee, will be his replacement instead of GCP non-executive director Dawn Crichard, who the trust originally reported would succeed Pirouet in its 2019 annual report.
Shares in GCP Infrastructure were down 0.1% at 109.05 pence in London on Thursday.
By Zoe Wickens; [email protected]
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