8th Jun 2021 17:30
Secured Income Fund PLC - specialist secured lending income investment trust - Announces result of the review of its film production financing portfolio, which had a book value for all six loans of GBP9.6 million as of April 30. Manager took April 30 net asset value and applied May cash receipts, but did not accrue interest for the month, to establish a pro-forma May 31 NAV for the six loans of GBP9.0 million. Says this was then compared with contracted cash flows, and expected future sales, adjusted for the current uncertainty of likely future sale amounts, timing of the payment and foreign exchange, to come to a combined provision for all six financings of GBP5.9 million. This is equivalent to an impairment of 11.16 pence per share.
Company says: "To ensure maximum returns to shareholders and to reflect the specialist nature of the sector, the board has instructed the manager to seek the assistance of an external specialist to assist in identifying the potential range of outcomes by way of income. In addition, it is intended that these loans will be independently valued in support of the audit for the financial year ending June 30, 2021.
"Using the methodology above, the position value for May 31, 2021 will be [GBP3.1 million]. All the loans have been moved to stage 3 categorisation."
Current stock price: 45.00p
Year-to-date change: 22% lower
By Arvind Bhunjun; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
SSIF.L