17th Dec 2019 18:25
(Alliance News) - Hadrian's Wall Secured Investments Ltd said Tuesday it is continuing its strategic review but has made an additional provision of GBP2.9 million to cover its general loss reserves.
As at October 31, the investment firm said its NAV per share is 81.54 pence. At September 30, Hadrian's Wall's NAV per share stood at 95.50p.
Back in November, Hadrian's Wall had expected to make a "material" loss on its investment in Biomass Premium, as the company was unable to secure a joint venture partnership with an unnamed UK company.
On Tuesday, the firm said: "The board has asked the investment adviser, Hadrian's Wall Capital Ltd, to evaluate the possible recovery outcomes for BOFL and BPFL. Whilst the investment adviser believes there will be some recovery from the assets, including the wood pellet heating systems which have potentially attractive government renewable heat initiative income streams attaching to them, and is now working to achieve this, there are likely to be additional costs as part of this process."
Despite this, Hadrian's Wall is maintaining its provision for BOFL and BPFL at GBP18.1 million. The company also noted the remaining loans in its portfolio are performing as expected, but, reflecting a "more prudent" approach to provisioning, has set aside an additional GBP2.9 million - equivalent to 2.02p per share.
As part of its review, Hadrian's Wall said the options include sales of individual investment assets, mainly structured as loans and leases, or running off the portfolio in accordance with the existing terms of the investments, or a combination of both.
On Monday, Hadrian's Wall said it has instructed its adviser not to make any further investments, but instead use the cash from ongoing loan repayments to repay amounts outstanding under its revolving credit facility. Thereafter, the company said it intends to use cash to make returns for shareholders.
"The board is continuing its strategic review of the options available to it, and anticipates being in a position to provide a further update in the New Year. This exercise will include a review of the ongoing role of Hadrian's Wall Capital Ltd, with the overall objective of maximising shareholder value," the company added on Tuesday.
Shares in Hadrian's Wall Secured Investments closed down 2.4% in London on Tuesday at 60.50 pence each.
By Paul McGowan; [email protected]
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