Hadrian's Wall Swings To Interim Profit On Strong Income Growth

23rd Mar 2018 15:13

LONDON (Alliance News) - Hadrian's Wall Secured Investments Ltd on Friday swung to profit in the first half of its financial year, as its loan portfolio income rose dramatically and its net asset value per ordinary share also improved.

The company - which invests primarily in UK commercial loans secured by assets such as equipment, plant and machinery, real estate and trade receivables - started trading on London's Main Market in June 2016.

Hadrian's Wall posted a pretax profit of GBP2.9 million for the six months to the end of December, compared with GBP197,000 loss for the eight months period to the end of December 2016, as loan portfolio income rose significantly to GBP3.9 million from GBP378,000.

At the end of the period, the company closed or committed to transactions with an aggregate value of GBP108.0 million.

Net asset value per share grew over the first half to 98.64 pence per share from 97.69p on June 30. However, NAV per C share fell to 97.43p from 97.97p.

Hadrian's Wall shares were trading down 1.5% at 96.09p per share on Friday.

The group's share price at the end of the period was 102.5p, with its C share price stood at 97.5p.

The total return for shareholders was negative 1.9%, as the premium of the share price to net asset value dropped sharply over the period to 3.9% compared with a 10% premium on June 30.

The total return to C shareholders was negative 4.9%, as the premium of the share price to net asset value also dropped over the period to none compared with the 4.6% premium on June 30.

The company declared interim dividend of 3.0 pence per share, up from 1.2p paid the year earlier and said it will not pay dividend for C share holders.

Hadrian's Wall Chairman David Warr said: "The board believes that the company’s loan portfolio is well structured and secured and that the company is well positioned to continue to identify additional investment opportunities that meet its investment objectives."