26th Sep 2019 12:16
(Alliance News) - Asset-backed lender VPC Specialty Lending Investments PLC said Thursday its performance in the first half continued on from its record 2018.
At June 30, VPC's NAV per share stood at 92.23 pence compared to 91.01p at the end of 2018, representing a 1.3% rise. Compared to the same point a year ago, VPC's NAV per share is 1.6% higher.
The investment company's total net assets attributable to equity shareholders ended the half at GBP300.0 million, 8.5% lower than the GBP327.7 million seen at December 31. VPC bought back 34.9 million shares in the period.
VPC declared 4.0p in dividends during the first half, unchanged from the year before.
In the six months to June 30, VPC delivered an income return of 4.46% and a capital return of 1.27%, giving a total return of 5.73%.
"The total return for the first half of the year continues the strong and consistent performance of the company's investments following a record total return of 8.96% for 2018," said Chair Kevin Ingram.
VPC's investment portfolio consists of 24 balance sheet investments, 29 equity investments, with the marketplace loans and residual securitisation investments making up the remaining component. The balance sheet investments and equity investments make up 86% and 10% of the company's NAV, respectively.
The trust's investment manager, Victory Park Capital Advisors, said: "The company experienced a strong total return during the first half of the year, primarily driven by credit performance across our portfolio of balance sheet investments combined with increases in the values of our equity investments.
"The income generated by the balance sheet investments averaged 1.16% per month during the period. Notably, we have generated a gross revenue return from the balance sheet investments of greater than 1.00% in 11 of the past 12 months."
In the first half, VPC generated net revenue returns of GBP11.3 million, down 18% on the GBP13.7 million generated the year before. The investment firm's total return increased 7.8% year on year to GBP22.0 million.
Ingram added: "We are focused on continuing the positive momentum from the first half of the year through to the year end and the continuation vote in 2020.
"We believe shareholders are starting to appreciate the strength and consistency of our investment performance as well as the efforts we have made to attract new shareholders. We continue to monitor the company's foreign currency exposure closely and the company's US dollar investment exposure remains fully hedged. The addition of the gearing facility allows us to reduce the cash drag within the company while also providing us with a reserve to deal with currency volatility that might accompany Brexit."
Shares in VPC Specialty were 0.2% lower in London on Thursday at 79.85p each.
By Paul McGowan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Vpc Specialty