Half-year report and financial statements 2025

GCP Infrastructure Investments Limited

("GCP Infra" or the "Company")

12 June 2025

LEI 213800W64MNATSIV5Z47 

Half-yearly report and financial statements for the period ended 31 March 2025

The Directors of the Company are pleased to announce the Company's half-yearly results for the period ended 31 March 2025. The half-yearly report and financial statements can be accessed via the Company's website at www.gcpinfra.co.uk

About the Company

The Company seeks to provide shareholders with regular, sustained, long-term dividend income whilst preserving the capital value of its investments by generating exposure to infrastructure debt and/or similar assets. It is currently invested in a diversified, partially inflation protected portfolio of investments, primarily in the renewable energy, social housing and PPP/PFI sectors.

The Company is a FTSE 250, closed-ended investment company incorporated in Jersey. It was admitted to the Official List and to trading on the London Stock Exchange's Main Market in July 2010. It had a market capitalisation of £607.7 million at 31 March 2025.

At a glance

Highlights for the period

· Dividends of 3.5 pence per share for the six month period to 31 March 2025 (31 March 2024: 3.5 pence per share), paid in line with the target2 of 7.0 pence set for the financial year.

· Total shareholder return1 for the period of -5.3% (31 March 2024: 12.5%) and total shareholder return since IPO1 of 91.1%. Total NAV return1 for the period of 0.5% (31 March 2024: 1.2%) and total NAV return since IPO1 of 178.0%.

· Profit for the period of £0.4 million (31 March 2024: £9.9 million). The decrease primarily reflects a reduction in loan interest received from solar assets with equity-like exposure. For further information refer to the financial review below.

· No new loans advanced during the period, with advances to existing borrowers totalling £13.1 million in accordance with existing contractual obligations. For further information refer below.

· Loan repayments of £44.4 million from renewables, PPP/PFI and supported living projects as part of the capital allocation policy. These included two disposal processes relating to underlying renewable energy assets. Further information is given below.

· Company NAV per ordinary share at 31 March 2025 of 102.28 pence (31 March 2024: 107.62 pence).

· Third party independent valuation of the Company's partially inflation‑protected investment portfolio at 31 March 2025 of £902.9 million (31 March 2024: £1.0 billion). The principal value at 31 March 2025 was £932.7 billion.

· Post period end, the Company made further advances, pursuant to existing contractual obligations, of £1.8 million and received repayments of £3.2 million.

1. APM - for definition and calculation methodology, refer to the APMs section below.

2. The dividend target is a target only and not a profit forecast or estimate and there can be no assurance that it will be met.

Andrew Didham, Chairman of GCP Infra, commented:

The Company's shares continued to trade at a discount to NAV in the period. This issue is not individual to the Company, with other companies in the listed alternatives sector facing similar share price pressure. This remains a function of an elevated interest rate environment, a challenging macroeconomic backdrop, and continued outflows from UK-focused equity funds. Although, as a result, the dividend yield on share price at 31 March 2025 was 9.8%, which the Board believes represents an attractive entry point for investors.

The Board and the Investment Adviser remain committed to reducing the discount1 at which the Company's shares trade. The Company has proactively explored consolidation opportunities, raised capital through disposals of assets, and applied this capital to reducing fund level leverage and returning capital to shareholders through buybacks. These have been proactive measures to address the discount, with a net repayment of leverage of £63.0 million and £13.7 million returned to shareholders. Disposals of £57.1 million have been completed so far, and the Company is focused on delivering its commitment to realise £150 million, facilitating the return of £50 million to shareholders, and repayment of drawn balances under the revolving credit facility.

The Board and the Investment Adviser remain focused on the Company's capital allocation policy as a route to reducing the share price discount to NAV. Further realisations at NAV demonstrate it is the most appropriate valuation for shares. The NAV at 31 March 2025 was 102.28 pence per share. The Company has generated a NAV total return1 for the period of 0.5% and total NAV return since IPO1 of 178.0%.

During the period, two disposal processes relating to underlying renewable energy assets were completed, facilitating the repayment of £23.0 million across three of the Company's loan positions. 

Despite market challenges, the Company generated total income of £8.5 million (31 March 2024: £19.9 million) and profit for the period of £0.4 million (31 March 2024: £9.9 million). The Company declared and paid dividends of £30.3 million (31 March 2024: £30.4 million) in line with the dividend target2 of 7.0 pence per share set out for the year ending 30 September 2025.

The Board and Investment Adviser would like to thank shareholders for their ongoing support of the Company.

1. APM - for definition and calculation methodology, refer to the APMs section below.

2. The dividend target is a target only and not a profit forecast or estimate and there can be no assurance that it will be met.

Investment objectives and KPIs

The Company primarily invests in UK infrastructure debt and/or similar assets to meet the following key objectives:

Further information on Company performance can be found in the financial review below.

1. The dividend target is a target only and not a profit forecast or estimate and there can be no assurance that it will be met.

2. The Company has been awarded the LSE Green Economy Mark which recognises London-listed companies generating more than half their revenues from green environmental products and services.

3. The Cardale PFI loan is secured on a cross-collateralised basis against 18 separate operational PFI projects, with no exposure to any individual project being in excess of 10% of the total portfolio (calculated by reference to the percentage of total assets).

4. The Company's portfolio is 24% invested in PPP/PFI projects in the healthcare, education, waste, housing, energy efficiency and justice sectors and 14% in the supported living sectors which are measured in alignment with the UN SDGs, and 3% of the portfolio is invested in PPP/PFI leisure projects.

5. APM - for definition and calculation methodology, refer to the APMs section below.

6. The Board is composed of six Directors, including one Director from a minority ethnic group and two female Directors.

Portfolio at a glance

The Company's portfolio comprises underlying assets located across the UK which fall under the following classifications:

Senior ranking security

54%

Weighted average annualised yield1

8.0%

Average life

11 years

Partially inflation protected

49%

Principal value of portfolio

£932.7bn

1. APM - for definition and calculation methodology, refer to the APMs section below.

Chairman's interim statement

I am pleased to present the half-yearly report for the Company for the period ended 31 March 2025.

Andrew Didham

Chairman

Introduction

The Company's shares, alongside the wider alternative income listed sector, continued to trade at a discount1 to the Company's NAV per share during the period. This continues to be a function of an elevated interest rate environment, the macro-economic backdrop and continued outflows from UK-focused equity funds. As a result, the Company's annual dividend target of 7.0 pence per ordinary share represents a yield of 9.8% on the share price at 31 March 2025. This is an attractive entry point for investors seeking a stable and secure income underpinned by a mature, diverse and operational portfolio of UK‑based infrastructure projects.

The Board and Investment Adviser remain committed to reducing the discount1 at which the shares trade. Over the last 18 months, the Company has proactively explored consolidation opportunities, raised capital through disposals of assets and applied this capital to reducing fund-level leverage and returning capital to shareholders through buybacks. The current focus remains on delivering the commitment to realise £150 million of disposals for these purposes.

It is also important to recognise that the current period represents a time of heightened uncertainty with tariffs threatening the established global trade system, a reduction in the UK's growth expectations and several listed peers seeking to execute on disposal programmes. These circumstances have contributed to a delay in asset realisations.

Share price performance

The Board continues to closely monitor the Company's share price and NAV, and actively engages with shareholders and potential investors to encourage demand for the Company's shares. At 31 March 2025, the share price was 71.30 pence, representing a 9.6% decrease in share price from the financial year end. Total shareholder return1 for the period was -5.3% and total shareholder return since IPO1 in 2010 was 91.1%.

The Company's shares have traded at an average discount1 to NAV of 30.4% during the period and an average premium¹ of 2.6% since IPO. At 31 March 2025, the share price was 71.30 pence, representing a discount¹ to NAV of 30.3%. On 10 June 2025, this had tightened to 28.1%.

1. APM - for definition and calculation methodology, refer to the APMs section below.

The Board and the Investment Adviser are focused on the Company's capital allocation policy in order to demonstrate that NAV is the most appropriate valuation for shares. The NAV at 31 March 2025 was 102.28 pence per share. The Company has generated a NAV total return1 for the period of 0.5% and total NAV return since IPO1 of 178.0%.

Capital allocation

The Board adopted a disciplined capital allocation policy in the Company's 2023 annual report. The policy confirmed its intentions to prioritise a material reduction in leverage and facilitate the return of at least £50 million of capital, whilst maintaining the dividend target.

In order to facilitate this capital allocation policy, the Investment Adviser's focus has been on refinancing loans and disposing of investments where appropriate to deliver the following outcomes:

· exit certain sectors, including materially exiting the supported living sector;

· reduce exposure to merchant electricity prices; and

· re-focus the portfolio on debt.

During the period, in support of the capital allocation policy, two disposal processes relating to underlying renewable energy assets were completed. These facilitated the repayment of £23.0 million across three of the Company's loan positions, two of which were realised as a result. The Investment Adviser is actively working on a pipeline of disposals in sectors that meet the criteria highlighted above.

Financing

The Company has a £150.0 million RCF with AIB (UK) Plc, Lloyds Bank Plc, Clydesdale Bank Plc (trading as Virgin Money) and Mizuho Bank Limited. The facility has a three year term expiring in March 2027.

During the period, £24.0 million of the RCF was repaid in line with the Directors' stated aim of reducing leverage under the capital allocation policy. At 31 March 2025, the Company had £41.0 million drawn under the RCF (30 September 2024: £57.0 million).

The facility gives the Company access to flexible debt finance, which allows it to take advantage of investment opportunities as they arise, and may also be used to manage the Company's working capital requirements.

Financial update

The Company generated total income of £8.5 million (31 March 2024: £19.9 million) and profit for the period of £0.4 million (31 March 2024: £9.9 million). The Company declared and paid dividends of £30.3 million (31 March 2024: £30.4 million) in line with the dividend target2 of 7.0 pence per share set out for the year ending 30 September 2025.

The net assets of the Company decreased from £913.1 million (105.22 pence per share) at 30 September 2024 to £871.7 million (102.28 pence per share) at 31 March 2025, reflecting repayments received and changes in the valuation of the portfolio during the period. Further information on valuation movements is given below.

Cash and cash equivalents marginally increased from £11.76 million at 30 September 2024 to £11.78 million at 31 March 2025.

1. APM - for definition and calculation methodology, refer to the APMs section below.

2. The dividend target is a target only and not a profit forecast or estimate and there can be no assurance that it will be met.

Dividends

The Company aims to provide shareholders with regular, sustained, long-term dividends. For the period to 31 March 2025, the Company paid dividends of 3.5 pence per share.

The Board and Investment Adviser do not believe there have been any material changes in the Company's ability to service sustained, long‑term dividends since the assessment was carried out in 2021 which established a dividend target1 of 7.0 pence per share per annum.

The Company continues to assess dividend coverage by using several metrics, most notably, loan interest accrued2, which considers interest accruing to the benefit of the Company during the relevant period. In the period to 31 March 2025, dividend cover using this metric, i.e. adjusted earnings cover2, was 0.9 times. Earnings cover under IFRS was 0.01 times.

Whilst the Company's primary focus is on the reallocation of capital, the Board believes that reducing leverage and rebalancing the portfolio will further support the Company's dividend target.

Investment and disposals

Consistent with the capital allocation policy, the Company made no new investments during the period to 31 March 2025. The Company advanced £13.1 million to existing borrowers in line with existing contractual agreements.

In November 2024, the Company completed the disposal of a portfolio of rooftop solar assets installed on domestic properties in the UK at the prevailing valuation, generating proceeds of £6.8 million.

In January 2025, the Company completed the sale of its interests in two operational onshore wind farms, with a combined generating capacity of 28MW. The total consideration, including contingent amounts, represented approximately 88% of the assets' valuations as reflected in the net asset value at 30 September 2024.

The transaction generated initial cash proceeds of approximately £16.5 million, with an additional £1.3 million contingent consideration and £1.0 million in realised tax benefits. The assets were originally acquired in 2017 from funds managed by Platina Partners. The current realised IRR on the investments is 9.7% excluding contingent amounts. Proceeds from the disposal were deployed in line with the Company's capital allocation policy and contributed towards its stated objective of returning at least £50 million to shareholders through share buybacks.

At 10 June 2025, the Company's net debt position was £43.2 million. Furthermore, the disposals have reduced the Company's exposure to equity-like interests in the onshore wind sector, demonstrating progress against the key objectives of the capital allocation policy.

The Investment Adviser is in discussions for the disposal of up to £200 million of investments in line with the capital allocation policy.

Operational overview

The Company's investment portfolio performed well during the period. The Company's focus on availability-based projects has meant the portfolio has continued to generate predictable revenues despite the volatile economic backdrop.

Power price volatility in the near-term forward curve remains a driver of volatility in the Company's net asset value, mitigated by the Company's and borrowers' hedging activity at a Company and asset level respectively. Since 2023, electricity prices have traded within a narrower range compared to the extreme volatility observed in 2022. However, material differences remain among long-term electricity price forecast providers. The Company's valuation methodology continues to apply the average of the last four quarterly AFRY curves, which remains at a level materially below those used by alternative providers. Further details are provided below.

During the period, the Company revised the long-term availability assumptions of a portfolio of biomethane to grid anaerobic digestion projects and a waste wood power station. These projects are owned by the Company following enforcement activity.

ESG

The Company's investments deliver products or services that have inherent environmental and social benefits. For the year ended 30 September 20243, the Company's renewables portfolio exported 1,320 GWh of green energy, which is the equivalent power for 488,842 homes. The remainder of the portfolio provided 1,649 hospital beds, 26,196 school places and 911 supported living units for people with learning, physical or mental disabilities. Further information can be found on page 31 of the Company's 2024 annual report.

1. The dividend target is a target only and not a profit forecast or estimate and there can be no assurance that it will be met.

2. APM - for definition and calculation methodology, refer to the APMs section below.

3. Data at 30 June 2024 to facilitate inclusion in the 2024 annual report.

The Investment Adviser seeks to measure, engage with and encourage improvements in the governance of portfolio assets. Its focus on ESG aims to reduce the risks of investment whilst supporting, and even increasing, the returns available for shareholders.

The Board is committed to upholding best reporting practices on ESG matters, including promoting transparency on the Company's ESG performance, and will continue to publish further information in the Company's annual report for the financial year ending 30 September 2025.

Risks

As part of the Company's semi-annual risk assessment, the Board reviewed the principal risks and uncertainties detailed on pages 89 to 96 of the Company's 2024 annual report. The existing principal risks and uncertainties are expected to remain relevant to the Company for the next six months of the financial year.

The Board also concluded that, although the existing principal risks are unchanged, the probability and impact of some have changed. Refer below for further information.

Future market outlook

The Company remains committed to completing £150 million of disposals and applying the proceeds in accordance with the published capital allocation policy.

The evolution of the Company's activities beyond this point will depend on the evolution of the share price discount1 to NAV. The Company expects that, when completed, the disposal and capital allocation programme may provide a catalyst for a re-rating of the Company's shares. This should be supported by the UK central bank further cutting interest rates over the remainder of 2025.

The Board remains committed to monitoring and responding to the Company's rating, and taking such activities as it considers appropriate to reduce any material share price discount1 to net asset value. The Board and Investment Adviser will continue to engage with the Company's shareholders through these considerations, recognising that there is likely to be a divergence of opinion amongst the Company's shareholder base.

The UK has set itself ambitious targets for new infrastructure development to address the challenges of a growing and ageing population, decarbonisation, energy security and digitalisation. Established support mechanisms such as the contract‑for‑difference, alongside new mechanisms such as the hydrogen and carbon removals business models are likely to generate investment opportunities that will be relevant for the Company. The recent Planning and Infrastructure Bill, the ongoing review of electricity market arrangements ("REMA"), Clean Power 2030 Action Plan and TM04+ grid connection reforms propose various structural changes that seek to unlock projects and promote investment. Refer below for further information. There is a need to take such proposals and rapidly develop and implement the reforms, policies and detailed guidance needed to give developers and funders alike the confidence to invest.

The Board

Ian Brown joined the Board on 13 February 2025 following regulatory and shareholder approval. At the same time, Michael Gray, who served as the Investment committee chair, retired from the Board following nine years of service. The Board extends its gratitude for his significant contribution to the Company. Alex Yew took over as chair of the Investment committee, with effect from 13 February 2025. I would also like to extend a warm welcome to Heather Bestwick who joined the Board as a non-executive Director, on 29 April 2025, bringing over 30 years of experience in the financial services sector. She is an English solicitor and a qualified Cayman Islands attorney and notary public. She has acted as an independent non-executive director of a number of investment funds and corporate services providers since 2014.

Final thoughts

The persistent material share price discount to the Company's NAV per share continues to represent an attractive proposition for incoming investors. For existing investors, the Company and Investment Adviser remain committed to taking actions needed to improve the Company's share price rating.

The Company is advised by an experienced team with a proven track record of long‑term value creation for shareholders. It has a well-diversified portfolio of assets that deliver products or services that are required for the effective operation of the modern economy whilst generating positive environmental and social impacts.

The Board and Investment Adviser are grateful to shareholders for their ongoing support of the Company.

Andrew Didham

Chairman

11 June 2025

1. APM - for definition and calculation methodology, refer to the APMs below.

For more information, please refer to the Investment Adviser's report below.

Investment Adviser's report

The Company seeks to provide shareholders with long-term dividends and preserve the capital value of its investments through exposure to a diversified portfolio of UK infrastructure projects.

Investment objective and policy

Investment strategy

The Company's investment strategy is set out in its investment objective, policy and strategy below. It should be considered in conjunction with the Chairman's statement and the Investment Adviser's report, which provide an in-depth review of the Company's performance and future strategy. Further information on the business model and purpose is set out on pages 28 and 29 of the Company's annual report and financial statements for the year ended 30 September 2024.

Investment objective

The Company's investment objective is to provide shareholders with regular, sustained, long-term dividends and to preserve the capital value of its investment assets over the long term.

Investment policy and strategy

The Company seeks to generate exposure to the debt of UK infrastructure Project Companies, their owners or their lenders, and related and/or similar assets which provide regular and predictable long-term cash flows.

Core projects

The Company will invest at least 75% of its total assets, directly or indirectly, in investments with exposure to infrastructure projects with the following characteristics (core projects):

· pre-determined, long-term, public sector backed revenues;

· no construction or property risks; and

· benefit from contracts where revenues are availability based.

In respect of such core projects, the Company focuses predominantly on taking debt exposure (on a senior or subordinated basis) and may also obtain limited exposure to shareholder interests.

Non-core projects

The Company may also invest up to an absolute maximum of 25% of its total assets (at the time the relevant investment is made) in non-core projects, taking exposure to projects that have not yet completed construction, projects in the regulated utilities sector and projects with revenues that are entirely demand based or private sector backed (to the extent that the Investment Adviser considers that there is a reasonable level of certainty in relation to the likely level of demand and/or the stability of the resulting revenue). At 31 March 2025, the Company's exposure to non-core projects was c.3% of the portfolio by value.

There is no, and it is not anticipated that there will be any, outright property exposure of the Company (except potentially as additional security).

Diversification

The Company will seek to maintain a diversified portfolio of investments and manage its assets in a manner which is consistent with the objective of spreading risk. No more than 10% in value of its total assets (at the time the relevant investment is made) will consist of securities or loans relating to any one individual infrastructure asset (having regard to risks relating to any cross‑default or cross-collateralisation provisions). This objective is subject to the Company having a sufficient level of investment capital from time to time, the ability of the Company to invest its cash in suitable investments and the investment restrictions in respect of 'outside scope' projects described above.

It is the intention of the Directors that the assets of the Company are (as far as is reasonable in the context of a UK infrastructure portfolio) appropriately diversified by asset type (e.g. PFI healthcare, PFI education, solar power, social housing, biomass etc.) and by revenue source (e.g. NHS Trusts, local authorities, FiT, ROCs etc.).

Non-financial objectives of the Company

The key non-financial objectives of the Company are:

· to build and maintain strong relationships with all key stakeholders of the Company, including (but not limited to) shareholders and borrowers;

· to continue to focus on creating a long‑term, sustainable business relevant to all stakeholders;

· to develop and increase the understanding of the investment strategy of the Company and infrastructure as an investment class; and

· to focus on the long-term sustainability of the portfolio and make a positive impact through contributing towards the generation of renewable energy and financing infrastructure that is integral to society.

Key policies

Distribution

The Company seeks to provide its shareholders with regular, sustained, long‑term dividend income.

The Company has authority to offer a scrip dividend alternative to shareholders. The offer of a scrip dividend alternative was suspended at the Board's discretion, for all dividends during the period, as a result of the discount1 between the likely scrip dividend reference price and the relevant quarterly NAV per share of the Company. The Board intends to keep the payment of future scrip dividends under review.

Leverage and gearing

The Company intends to make prudent use of leverage to finance the acquisition of investments and enhance returns for shareholders. Structural gearing of investments is permitted up to a maximum of 20% of the Company's NAV immediately following drawdown of the relevant debt.

1. APM - for definition and calculation methodology, refer to the APMs section below.

The Investment Adviser

Gravis Capital Management Limited is the appointed Investment Adviser and AIFM to the Company.

The Investment Adviser has a long track record of working in the UK infrastructure market, particularly with regard to debt advisory work, and has established close relationships with key participants in the UK infrastructure market, including equity investors and lenders. The senior management team at Gravis has extensive specialist expertise and a demonstrable track record of originating, structuring and managing infrastructure debt investments. Further information can be found on pages 106 to 109 of the 2024 annual report.

The Investment Adviser is an independently managed business with ORIX Corporation as its majority shareholder. ORIX Corporation is a global financial services company based in Japan with assets under management of ¥74 trillion1 globally.

UK infrastructure sector overview

Infrastructure plays a key role in supporting how the UK addresses society's current challenges. The UK Government is seeking to support economic growth through infrastructure investment across housing, transport, energy and the digital economy. This supports the UK's industrial strategy, promoting the onshoring of supply chains associated with designing, building, owning and operating infrastructure.

The UK Infrastructure Bank has become the National Wealth Fund with an expanded remit, and has made several investments across ports, energy, raw materials and providing investment to local authority initiatives. GB Energy has been established and will be headquartered in Aberdeen, with its future role still to be confirmed in detail.

The recently published Planning and Infrastructure Bill 2025 seeks to reform planning in England and Wales to 'get Britain building again', including supporting the Government's target to build 1.5 million new homes and fast-track planning decisions on 150 major infrastructure projects. The Clean Power 2030 Action Plan, prepared by 'Mission Control' for the Government's 2030 low carbon electricity target, was also published in the period. This sets out an ambitious plan that requires investment of £40 billion per annum for the next six years, with the objective of reducing the emissions intensity of the electricity grid to less than 50 gCO2/kWh as part of a plan that would see up to 50 GW of offshore wind, 29 GW of solar energy and 27 GW of battery energy storage capacity.

The TM04+ grid connection reforms were approved by Ofgem in April 2025, updating the grid connection process from a first‑come, first-served model to a 'ready and needed' model in which projects that are close to being ready to build and are geographically favourable are provided with firm grid connection arrangements. The UK Government has committed to updating the market on its long-running review of electricity market arrangements, in which locational pricing has been proposed, later this summer.

Overall, these reforms are needed, and subject to final decisions and successful implementation, have the potential to support infrastructure investment. However, uncertainty around market arrangements and legislative processes and frameworks make investment more difficult, which in turn makes ambitious targets unlikely to be achieved.

It has been positive to see that the first phase of projects in the UK's carbon and hydrogen business model clusters have been announced at Teesside and HyNet (Merseyside): a combination of the regulated asset base and contract‑for‑difference models that have supported CO2 transport and storage infrastructure and the decarbonisation of large emitters respectively. Similarly, the Silvertown Tunnel, the first new crossing of the River Thames east of Tower Bridge since 1991, opened in April 2025.

Sector update:

Renewable energy

The Company's portfolio is 59% invested in the renewables sector, with a valuation at the period end of £539.2 million.

The Company's largest exposure continues to be a diversified portfolio of renewable energy projects. This includes several equity-like exposures resulting from past enforcements. The Company's diversification across intermittent and baseload technologies, as well as exposure to renewable electricity and heat projects, mitigates technology-specific risks such as price cannibalisation and weather conditions.

Overall, the period was disappointing from a wind and solar resource availability perspective. Across the UK, wind resource was 2% lower than the five year average, and solar irradiation was reduced by 5% compared to the previous year. The Company's projects located in Northern Ireland also suffered from grid constraint and curtailment, limiting the ability of such projects to export electricity to the grid. Electricity prices remain structurally higher than at the time of investment, positively supporting cash generation in the underlying projects.

1. Data as at 31 March 2025.

The contract-for-difference continues to be the primary support mechanism for UK renewables. In recent auction rounds, budgets have been made available for onshore renewables including solar PV and onshore wind, and emerging technologies such as floating offshore wind also receiving support. Offshore wind continues to be the primary beneficiary of this regime.

It has been pleasing to see the development of the carbon removal and hydrogen business models, in which the UK Government is supporting investment in transport and storage infrastructure for hydrogen and CO2 through regulated asset base models and abatement (such as carbon capture) in emitters through new contracts-for-difference linked to natural gas or voluntary carbon markets. These mechanisms, if successful, have the potential to create attractive investment opportunities for the Company's existing, and potential new, projects in the future.

Sector update:

Supported living

The Company's portfolio is 14% invested in the supported living sector, with a valuation at the period end of £123.2 million.

The Company was one of the first listed investment companies to invest in the supported living sector. However, the Company stopped making new investments in the sector in 2018 and has been actively reducing its exposure to the sector since then. The Board's capital allocation policy adopted in the 2023 annual report and financial statements reconfirmed the Company's intention to prioritise a material reduction in its exposure to the supported living sector and the Company is actively working on a programme of disposals.

The Company has provided debt finance to entities that own and develop properties which are leased under a long-term fully repairing and insuring lease to Registered Providers ("RPs") who operate and manage the properties. The RPs that have leased properties from the Company's borrowers have faced continued challenges in respect of governance and financial viability by the Regulator of Social Housing.

During the period, there have been positive developments with several registered providers to which the Company's borrowers have leased properties. My Space completed a CVA and rental payments have re-commenced on a pass-through basis. Bespoke Supported Tenancies have completed a restructuring of leases to align with income receipts and updated maintenance budgets, the impact of which has been factored into the Company's valuation. The Company expects further progress in the short term on initiatives to consolidate registered providers, supporting the overall long-term viability of the sector.

Sector update:

PPP/PFI

The Company's portfolio is 27% invested in the PPP/PFI sector, with a valuation at the period end of £240.5 million.

There are very few primary investment opportunities remaining in the PPP/PFI sector, as the UK Government has moved away from supporting investments that use these models. At the time of the Company's IPO in 2010, the portfolio comprised subordinated debt investments in projects procured under PPP models. These projects remain a core part of the portfolio. While the Investment Adviser continues to review secondary opportunities when presented, they are typically small in scale and subject to competitive bidding processes. There is the potential that a PPP/PFI type model is re-introduced by the UK Government to support the procurement of private sector finance for social infrastructure and the Company will closely monitor any developments on this front.

The Investment Adviser continues to actively review alternative funding models, including the mutual investment model, licence‑based models such as the regulated asset base approach and direct procurement for customers in the water sector, or offshore or onshore transmission licensing frameworks.

Macro-economic update

Market update

The period has been dominated by uncertainty generated by the newly appointed US Administration, particularly through the proposed introduction of material tariffs on trade and risks of a resulting trade war between the world's largest economies. Whilst the Company's portfolio remains defensive in the context of such risks, the proposals have the potential to be sufficiently far-reaching that no investor or asset class is unaffected. The Company and Investment Adviser continue to closely monitor the evolution of such policies to assess potential impacts on the Company's investment portfolio and shareholders.

UK inflation has fallen since its peak and has stabilised, albeit still at a level above the Bank of England's targets. Further interest rate cuts are expected in 2025 that will make the Company's investments and dividend yield1 look more attractive on a relative basis.

The UK's economic growth prospects continue to look weak, with the Autumn Budget raising taxes on labour and relying on growth creation through investment to sustain a level of fiscal headroom that looks increasingly slim.

UK-focused funds have experienced more outflows than any other investment sector since 2021, with Calastone estimating that £10 billion was withdrawn from UK equity funds during 20242. Similarly, funds with a responsible investment objective saw outflows of £7 billion over 2023 and 2024. A general shift from actively managed strategies to index-tracker/ETF structures has also been a powerful theme. All of these dynamics are relevant for certain shareholders and have contributed to the reduction in demand for the Company's shares.

1. APM - for definition and calculation methodology, refer to the APMs section below.

2. Source: Calastone Fund Flows data; https://www.calastone.com/insights/equity-funds-enjoyed-record-inflows-of-27bn-in-2024-shrugging-off-warning-signals-from-the-bond-markets/.

Key valuation assumptions

The table below summarises the key assumptions used to forecast cash flows from renewable assets the Company has invested in, and the range of assumptions the Investment Adviser observes in the market.

The Investment Adviser does not consider that such differences in assumptions are compensated for in the market by applying a higher or lower discount rate to recognise the increased or decreased risks respectively of a valuation, resulting in potential material valuation differences. This is shown in the sensitivity of the Company's NAV to a variation of such assumptions in the table, on a pence per share basis.

Investment and portfolio review

Portfolio summary

At the period end, the Company held exposure to 48 investments with a total valuation of £902.9 million. Approximately 1% of the portfolio was exposed to assets in their construction phase.

1. APM - for definition and calculation methodology, refer to the APMs section below.

Top ten investments

Key

1. Project type

2. % of total portfolio

3. Cash flow type

1 Cardale PFI Investments1

1. PPP/PFI

2. 13.6%

3. Unitary charge

2 Gravis Solar 1

1. Commercial solar

2. 9.5%

3. ROC/PPA/FiT

3 GCP Programme Funding S14

1. Biomass

2. 5.8%

3. ROC/RHI/Merchant

4 GCP Bridge Holdings2

1. Various

2. 5.1%

3. ROC/Lease/PPA

5 GCP Biomass 2

1. Biomass

2. 5.0%

3. ROC/PPA

6 GCP Programme Funding S10

1. Anaerobic digestion

2. 5.0%

3. ROC/RHI

7 GCP Social Housing 1 Ltd B Notes

1. Supported living

2. 4.1%

3. Lease

8 Gravis Asset Holdings H

1. Onshore wind

2. 4.1%

3. ROC/PPA

9 GCP Green Energy 1

1. Commercial solar/Onshore wind

2. 3.8%

3. ROC/PPA

10 GCP Rooftop Solar Finance Plc

1. Onshore wind

2. 3.8%

3. ROC/PPA

1. Cardale PFI Investments is secured on a cross-collateralised basis against 18 separate operational PFI projects.

2. GCP Bridge Holdings is secured against a portfolio of six infrastructure investments in the renewable energy and PPP sectors.

Investments and repayments

During the period, the Company made 17 advances totalling £13.1 million under existing contractual obligations, £10 million of which was in relation to capitalised interest. No new investments were made during the period, in line with the Board's stated capital allocation policy. The Company received 32 repayments totalling £44.4 million, 29 of which were scheduled repayments and two were disposal processes relating to underlying renewable energy assets.

Post period end, the Company made further advances, pursuant to existing contractual obligations, of £1.8 million and received scheduled repayments of £1.9 million and unscheduled repayments of £1.3 million, giving a net repayment position of £1.4 million. A detailed breakdown of the movements in the valuation of the investment portfolio is provided below.

Investment analysis for the period

Pipeline of investment opportunities

The Company's focus this period has been on executing its capital allocation policy; however, it continues to engage with market participants to stay informed of transaction activity and potential investment opportunities across existing sectors and emerging technologies. With the current elevated Bank of England base rate, the cost of debt from banks, offered at a margin over SONIA, is higher than it has been historically, which means the Company is more competitive than it would be in a low‑rate environment.

Current market opportunities offer the potential to reinvest at a lower risk‑adjusted return, or to seek out significantly higher returns. The Company also has potential follow‑on investment opportunities in the existing portfolio, benefiting from the known credit of existing counterparties.

Portfolio sensitivities

This section details the sensitivity of the value of the investment portfolio to a number of risk factors to which it is exposed. A summary of the overall investment portfolio risks, and the Investment Adviser's approach to risk, can be found on pages 34 to 36 of the Company's annual report and financial statements for the year ended 30 September 2024.

Electricity prices

A number of the Company's investments rely on market electricity prices for a component of their revenues. Changes in electricity prices impact a borrower's ability to service debt or, in cases where the Company has stepped into projects and/or has direct exposure through its investment structure, impact overall returns.

The Company seeks to mitigate this exposure to market electricity prices in the short to medium term by selling power to users under power price agreements that do not vary with market prices. The Investment Adviser continues to review opportunities to hedge electricity market prices to lock in attractive price levels relative to the original investment projection and to mitigate volatility in NAV.

The table below shows the forecast impact on the portfolio of a given percentage change in electricity prices over the full life of the forecast period to the maturity of the hedge, the impact on hedging arrangements and the subsequent net impact on a pence per share basis. Further information on the Company's hedging arrangements is detailed in note 10 to the financial statements.

Inflation

Just under half (49%) of the Company's investments by portfolio value have some form of inflation protection. This is structured as a direct link between the return and realised inflation (relevant to the supported living assets and certain renewables) and/or a principal indexation mechanism which increases the principal value of the Company's loans outstanding by a share of realised inflation over a pre‑determined strike level (typically 2.75% to 3.00%).

The table below summarises the change in interest accruals and potential NAV impact associated with a movement in inflation.

Portfolio performance update

The weighted average discount rate used across the Company's portfolio at 31 March 2025 was 8.36% (30 September 2024: 7.95%). At the period end, c.1% (30 September 2024: c.1%) of the Company's portfolio was exposed to assets at the construction stage of development.

Electricity prices, while still above pre-2022 levels, continued to stabilise in 2025 following the sharp volatility seen during the energy crisis.

This has supported solid cash generation across the Company's portfolio, particularly when compared to assumptions in the original investment case. However, both short-term and long-term prices have declined further in recent periods. The Company continues to manage this proactively by securing fixed prices through power purchase agreements and maintaining a disciplined hedging strategy where appropriate.

The performance of the assets and the valuation metrics adopted by the Company and validated by the independent Valuation Agent support the Company's NAV. This is demonstrated by the Company's disposals completed to date, which on a weighted average basis have been completed in line with the prevailing NAV.

ROCs have been revoked by Ofgem on three projects in the portfolio. The Company has made a claim in connection with its rights under the original investment documentation in respect of the losses incurred because of the revocations. The Investment Adviser remains confident that it will be able to either solely or cumulatively: (i) address Ofgem's queries to prevent or mitigate negative impacts on a further four assets under audit; (ii) successfully challenge any adverse decisions by Ofgem on other assets under audit; or (iii) recover losses it incurs from third parties in relation to a breach of investment documentation across all affected assets.

Inflation, which remained elevated throughout much of last year, continued to fall in 2025 and is now closer to the Bank of England's target rate. While this has not impacted operational performance, the sustained decline in inflation has led to lower forecast cash flows from the Company's loans, resulting in a corresponding reduction in their valuation.

Valuation impact attribution

The specific factors that have impacted the valuation in the reporting period are summarised in the table below.

1. The derivative financial instrument was utilised to mitigate volatility in electricity price movements; refer to notes 10 and 13 for further details.

Interest capitalised

During the period, £36.5 million (31 March 2024: £41.3 million) of loan interest accrued1 was generated on the underlying investment portfolio for the benefit of the Company. During the period, £34.4 million (31 March 2024: £45.0 million) was received in cash or capitalised interest. The capitalisation of interest occurs for three reasons:

1. Where interest has been paid to the Company late (often as a result of moving cash through the Company and borrower corporate structures), a capitalisation automatically occurs from an accounting point of view.

2. On a scheduled basis, where a loan has been designed to contain an element of capitalisation of interest due to the nature of the underlying cash flows. Examples include projects in construction that are not generating operational cash flows, or subordinated loans where the bulk of subordinated cash flows are towards the end of the assumed life of a project, after the repayment of senior loans. Planning future capital investment commitments in this way is an effective way of reinvesting repayments received from the portfolio back into other portfolio projects.

3. Loans are not performing in line with the financial model, resulting in:

(i) lock-up of cash flows to investors who are junior to senior lenders; and

(ii) cash generation is not sufficient to service debt.

The table below shows a breakdown of interest capitalised during the period and amounts paid as part of final repayment or disposal proceeds:

The table below illustrates the forecast component of interest capitalised that is planned and unscheduled.

The Investment Adviser and the independent Valuation Agent review any capitalisation of interest and associated increase to borrowings to confirm that such an increase in debt, and the associated cost of interest, can ultimately be serviced over the life of the asset. To the extent an increase in loan balance is not serviceable, a downward revaluation is recognised, notwithstanding that such amount remains due and payable by the underlying borrower and where capitalisation has not been scheduled, it will attract default interest payable.

1. APM - for definition and calculation methodology, refer to the APMs section below.

Risks and viability

In the period, two of the principal risks included in the Company's 2024 annual report and financial statements have seen their residual risk increase, and three have seen their residual risk decrease, with all other principal risks remaining stable.

Key to strategy references

1 - Dividend income

2 - Diversification

3 - Capital preservation

1. APM - for definition and calculation methodology, refer to the APMs section below.

Financial review

During the period, the Company generated income of £8.5 million and a profit of £0.4 million. The Company's total shareholder return1 was -5.3% and total NAV return1 was 0.5%.

Financial performance

During the period, the Company generated operating income of £8.5 million (31 March 2024: £19.9 million), including loan interest income of £34.4 million and net valuation losses on investments of £25.8 million (31 March 2024: loan interest income of £45.0 million and net valuation losses on investments of £26.0 million).

Net losses on derivative financial instruments at period end were £0.2 million (31 March 2024: profit of £0.7 million).

Administration costs of £5.7 million (31 March 2024: £5.6 million) were incurred during the period; these include the Investment Adviser's fee, the Directors' fees and other third party service provider fees. These, and other operating costs, have remained broadly in line with the previous period.

Finance costs have reduced to £2.4 million from £4.4 million, reflecting lower amounts drawn compared to the prior period.

Total profit generated for the period was £0.4 million (31 March 2024: £9.9 million). The decrease from the prior period primarily reflects a reduction in loan interest received from solar assets that experienced lower generation due to irradiance levels, lower prevailing power prices, and increased capital and other expenditure.

Cash generation

The Company received loan principal repayments of £44.4 million and made cash advances totalling £3.1 million in the period (31 March 2024: £19.5 million in principal repayments and cash advances totalling £nil million). Furthermore, the Company made net repayments of £16.0 million on its RCF.

Loan interest receipts of £24.4 million were used to pay cash dividends of £30.3 million (31 March 2024: £32.6 million and £30.4 million respectively). The Company aims to manage its cash position effectively by minimising cash balances while maintaining financial flexibility.

The Directors have assessed the Company's cash resources and availability of funding as part of the going concern assessment. The Company held cash balances of £11.8 million at the period end and does not expect the level of annual expense to increase materially. The Directors and the Investment Adviser believe that scheduled loan interest receipts, repayments and the Company's RCF will provide sufficient liquidity for the Company.

Dividends

The Company paid dividends of 3.5 pence per share in respect of the six months to 31 March 2025. This is in line with the dividend target1 set out for the year ending 30 September 2025 of 7.0 pence per share. On an annualised basis, this represents a yield of 9.8% against the share price at 31 March 2025.

Share price performance

The Company's total shareholder return2 was -5.3% for the period and 91.1% since the Company's IPO in 2010. The Company has continued to experience weakness in its share price in line with similar investment companies. The shares have traded at an average discount2 to NAV of 30.4% over the period and an average premium2 of 2.6% since IPO. The share price at the period end was 71.30 pence per share, which represents a discount2 to NAV of 30.3%.

Revolving credit facility

At 31 March 2025, £41.0 million of the £150.0 million RCF was drawn. During the period, net amounts of £16.0 million were repaid in line with the Directors stated aim of reducing leverage under the capital allocation policy. Further details on the Company's RCF can be found in notes 8 and 13.

1. The dividend target is a target only and not a profit forecast or estimate and there can be no assurance that it will be met.

2. APM - for definition and calculation methodology, refer to the APMs section below.

Statement of Directors' responsibilities

Under the terms of the DTRs of the FCA, the Directors are responsible for preparing the half-yearly report and unaudited interim condensed financial statements in accordance with applicable regulations.

The Directors confirm to the best of their knowledge that:

· the unaudited interim condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

· the Chairman's interim statement and the Investment Adviser's report constitute the Company's interim management report, which include a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

· the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

On behalf of the Board

Andrew Didham

Chairman

11 June 2025

Independent review report

To GCP Infrastructure Investments Limited

Conclusion

We have been engaged by GCP Infrastructure Investments Limited (the "Company") to review the unaudited interim condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2025 of the Company, which comprises the statement of financial position, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the unaudited interim condensed set of financial statements in the half‑yearly financial report for the six months ended 31 March 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ("ISRE (UK) 2410") issued by the Financial Reporting Council for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the unaudited interim condensed set of financial statements.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Scope of review section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the the Company to cease to continue as a going concern, and the above conclusions are not a guarantee that the the Company will continue in operation.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the DTR of the UK FCA.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The directors are responsible for preparing the unaudited interim condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

In preparing the half-yearly financial report, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Our responsibility

Our responsibility is to express to the Company a conclusion on the unaudited interim condensed set of financial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the scope of review paragraph of this report.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement letter to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Andrew Quinn

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants and Recognised Auditors

Jersey

11 June 2025

Unaudited interim condensed statement of comprehensive income

For the period 1 October 2024 to 31 March 2025

All of the Company's results are derived from continuing operations.

The accompanying notes below form an integral part of the financial statements.

Unaudited interim condensed statement of financial position

As at 31 March 2025

Signed and authorised for issue on behalf of the Board of Directors.

Andrew Didham

Chairman

11 June 2025

Steven Wilderspin

Director

11 June 2025

The accompanying notes below form an integral part of the financial statements.

Unaudited interim condensed statement of changes in equity

For the period 1 October 2024 to 31 March 2025

1. The share premium is a distributable reserve in accordance with Jersey Company Law. Refer to note 9 for further information.

The accompanying notes below form an integral part of the financial statements.

Unaudited interim condensed statement of cash flows

For the period 1 October 2024 to 31 March 2025

The accompanying notes below form an integral part of the financial statements.

Notes to the unaudited interim condensed financial statements

For the period 1 October 2024 to 31 March 2025

1. General information

GCP Infrastructure Investments Limited is a public company incorporated and domiciled in Jersey on 21 May 2010 with registration number 105775. The Company is governed by the provisions of the Jersey Company Law and the CIF Law.

The Company is a closed-ended investment company and its ordinary shares are traded on the Main Market of the LSE.

The Company makes infrastructure investments, typically by acquiring interests in debt instruments issued by infrastructure Project Companies, their owners or their lenders and related and/or similar assets which provide regular and predictable long‑term cash flows.

2. Material accounting policies

2.1 Basis of preparation

The unaudited interim condensed financial statements for the six month period 1 October 2024 to 31 March 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU.

The unaudited interim condensed financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the Company's annual report and financial statements for the year ended 30 September 2024. The financial statements for the year ended 30 September 2024 were prepared in accordance with IFRS as adopted by the EU and audited by KPMG Channel Islands Limited, who issued an unqualified audit opinion.

The financial information contained in the unaudited interim condensed financial statements for the period 1 October 2024 to 31 March 2025 has not been audited, but has undergone a review by the Company's auditor in accordance with International Standards on Review Engagements (UK) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Financial Reporting Council for use in the UK.

The unaudited interim condensed financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets held at fair value through profit or loss.

The accounting policies adopted in the preparation of the unaudited interim condensed financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 30 September 2024, except for the new standards and amendments to standards, which are disclosed below.

New standards, amendments and interpretations

In the reporting period under review, the Company has applied amendments to IFRS, issued by the IASB. These include annual improvements to IFRS, changes in standards, legislative and regulatory amendments, changes in disclosures and presentation requirements.

This incorporated lack of exchangeability (amendments to IAS 21).

The adoption of the changes to accounting standards has had no material impact on these or prior periods' financial statements.

The amendments to IFRS that will apply for reporting periods beginning 1 January 2026 are the classification and measurement of financial instruments (IFRS 7 and IFRS 9).

The new IFRS that will apply for reporting periods beginning 1 January 2027 is the presentation and disclosure in financial statements (introduction of IFRS 18).

Classification and measurement of financial instruments (IFRS 7 and IFRS 9)

The amendments to IFRS 7 and 9 will be effective on or before 1 January 2026. Over the following twelve months, an assessment will be conducted on the impact of IFRS 7 and 9 which relate to settlement of liabilities through electronic payment systems and the classification of financial assets with ESG and similar features. The Company has elected not to early adopt the amendments to IFRS 7 and 9.

Presentation and disclosure in financial statements (IFRS 18)

Under current IFRS accounting standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. IFRS 18 promotes a more structured income statement. In particular, it introduces a newly defined 'operating profit' subtotal and a requirement for all income and expense to be allocated between three new distinct categories based on a company's main business activities.

The Directors are still assessing the impact of IFRS 18, but do not anticipate that its adoption will have a material impact on the financial statements.

Other than those detailed above, there are no new IFRS or IFRIC interpretations that are issued but not effective that are expected to have a material impact on the Company's financial statements.

Functional and presentation currency

Items included in the unaudited interim condensed financial statements of the Company are measured in the currency of the primary economic environment in which the Company operates. The financial statements are presented in Pound Sterling and all values have been rounded to the nearest thousand pounds (£'000), except where otherwise indicated.

Going concern

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has the resources to continue in business for the foreseeable future and for a period of at least twelve months from the date of the authorisation of these unaudited interim condensed financial statements.

The Investment Adviser has prepared cash flow forecasts which were challenged and approved by the Directors and included consideration of cash flow forecasts and stress scenarios.

The Directors are not aware of any material uncertainties that cast doubt upon the Company's ability to continue as a going concern. Therefore, the unaudited interim condensed financial statements have been prepared on a going concern basis.

2.2 Significant accounting judgements and estimates

The preparation of unaudited interim condensed financial statements in accordance with IFRS requires the Directors of the Company to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts recognised in the unaudited interim condensed financial statements. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability in the future.

(a) Critical accounting estimates and assumptions

Fair value of instruments not quoted in an active market

The valuation process is dependent on assumptions and estimates which are significant to the reported amounts recognised in the unaudited interim condensed financial statements, taking into account the structure of the Company and the extent of its investment activities (refer to note 11 for further information).

(b) Critical judgements

Assessment of non-current assets held for sale

The Directors have determined that at the date of the report, none of the Company's assets fulfil the classification criteria prescribed by IFRS 5 for non-current assets held for sale.

This determination has been made with consideration to the Company's capital allocation policy and the relative progress of various sales processes.

This process requires judgement in assessing a complex range of commercial factors in the context of the purpose, objectives and operational norms of the Company and its sector, and the application of the objective and scope of the standard. Factors considered include the probability of completing a sale within a specified timeframe, the status of commercial negotiations and related agreements, the relative strength of obligations or disincentives for non‑performance, and the possibility of impediments to completion or a change in terms.

Assessment as an investment entity

The Directors have determined that the SPVs through which the Company invests fall under the control of the Company in accordance with the control criteria prescribed by IFRS 10 and therefore meet the definition of subsidiaries. In addition, the Directors continue to hold the view that the Company meets the definition of an investment entity and therefore can measure and present the SPVs at fair value through profit or loss. This process requires a significant degree of judgement, taking into account the complexity of the structure of the Company and extent of investment activities (refer to note 11 of the annual report and financial statements for the year ended 30 September 2024).

Segmental information

For management purposes, the Company is organised into one main operating segment. All of the Company's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions by the Board (as the chief operating decision maker) are based upon the analysis of the Company as one segment. The financial results from this segment are equivalent to the unaudited interim condensed financial statements of the Company as a whole. The following table analyses the Company's underlying operating income per geographical location. The basis for attributing the operating income is the place of incorporation of the underlying counterparty.

3. Operating income

The table below analyses the Company's operating income for the period per investment type:

The table below analyses the net changes in fair value of the Company's financial assets and derivative financial instruments at fair value through profit or loss:

1. Does not include any contingent consideration.

4. Taxation

Profits arising in the Company for the period 1 October 2024 to 31 March 2025 are subject to tax at the standard rate of 0% (31 March 2024: 0%) in accordance with the Income Tax (Jersey) Law 1961, as amended.

5. Dividends

Dividends paid for the six month period to 31 March 2025 were 3.50 pence per share (31 March 2024: 3.50 pence per share) as follows:

1. On 30 April 2025, the Company announced a second interim dividend of 1.75 pence per ordinary share, amounting to £14.9 million paid on 4 June 2025 to ordinary shareholders on the register at 8 May 2025.

In accordance with the Company's constitution, in respect of the ordinary shares, the Company will distribute the income it receives to the fullest extent that is deemed appropriate by the Directors.

In declaring a dividend, the Directors consider the payment based on a number of factors, including accounting profit, fair value treatment of investments held, future investments, reserves, cash balances and liquidity. The payment of a dividend is considered by the Board and is declared on a quarterly basis. Dividends are a form of distribution and, under Jersey Company Law, a distribution may be paid out of capital. Therefore, the Directors consider the share premium reserve to be a distributable reserve. Dividends due to the Company's shareholders are recognised when they become payable.

6. Earnings per share

Basic and diluted earnings per share are calculated by dividing total profit and comprehensive income for the period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

7. Other payables and accrued expenses

8. Interest bearing loans and borrowings

The table below analyses movements over the period:

On 16 February 2024, the Company entered into a new secured RCF of £150.0 million with AIB (UK) Plc, Lloyds Bank Plc, Clydesdale Bank Plc (trading as Virgin Money) and Mizuho Bank Limited. The RCF is secured against the portfolio of underlying assets held by the Company. The facility is repayable in March 2027. Interest on amounts drawn under the facility is charged at SONIA plus 2.0% per annum. A commitment fee of 0.7% per annum is payable on undrawn amounts. At 31 March 2025, the total amount drawn on the RCF was £41.0 million.

All amounts drawn under the RCF may be used in or towards the making of investments in accordance with the Company's investment policy, with additional flexibility to allow the Company to enhance its working capital management. The facility provides the Company with continued access to flexible debt finance, allowing it to take advantage of investment opportunities as they arise, and may also be used to manage the Company's working capital requirements from time to time.

The RCF includes loan to value1 and interest cover1 covenants that are measured at the Company level. The Company has maintained sufficient headroom against all measures throughout the financial period and is in full compliance with all loan covenants at 31 March 2025.

9. Authorised and issued share capital

Share capital is representative of the nominal amount of the Company's ordinary shares in issue.

1. APM - for definition and calculation methodology, refer to the APMs section below.

The Company is authorised in accordance with its Memorandum of Association to issue up to 1.5 billion ordinary shares, 300 million C shares and 300 million deferred shares, each having a par value of 1.00 pence per share.

Share premium represents amounts subscribed for share capital in excess of nominal value less associated costs of the issue, less dividend payments charged to premium as and when appropriate. Share premium is a distributable reserve in accordance with Jersey Company Law.

The Company's issued share capital is represented by one class of ordinary shares. Quantitative information about the Company's share capital is provided in the statement of changes in equity.

At 31 March 2025, the Company's issued share capital comprised 884,797,669 ordinary shares (30 September 2024: 884,797,669), of which 32,525,112 (30 September 2024: 16,985,019) were held in treasury, and there were no C shares or deferred shares in issue.

The ordinary shares carry the right to dividends out of the profits available for distribution attributable to each share class, if any, as determined by the Directors. Each holder of an ordinary share is entitled to attend meetings of shareholders and, on a poll, to one vote for each share held.

10. Derivative financial instruments at fair value through profit or loss

On 27 March 2024, the Company entered into a new commodity swap agreement with Axpo Solutions AG under the same standard terms, which expired on 30 September 2024 and was settled in October 2024 in line with the contractual terms. The Company was granted a credit line of £50.0 million by Axpo Solutions AG in order to mitigate the need for regular cash flows associated with the hedge.

On 27 September 2024, the Company entered into a new commodity swap agreement with LBCM under the ISDA Master Agreement framework for risk management purposes, which includes full right of set off. The derivative financial instrument comprises a commodity swap on baseload electricity for the purpose of hedging market movements in electricity prices, in cases where the Company has stepped into projects and/or has direct exposure through its investment structure. The commodity swap agreement expired on 31 March 2025.

On 31 March 2025, the Company entered into a new commodity swap agreement with LBCM under the same standard terms.

The table below sets out the valuation of the swap held by the Company at the period end, as provided by Axpo Solutions AG:

11. Financial instruments

11.1 Capital management

The Company is funded from equity balances, comprising issued ordinary share capital, as detailed in note 9, and retained earnings, in addition to a RCF, as detailed in note 8.

The Company may seek to raise additional capital from time to time, to the extent the Directors and the Investment Adviser believe the Company will be able to make suitable investments, with consideration given to the alternatives of share buybacks and a reduction in leverage. The Company may borrow up to 20% of its NAV at any such time borrowings are drawn down. At the period end, the Company remains modestly geared with loan to value1 of 5% (30 September 2024: 6%).

11.2 Financial risk management objectives

The Company has an investment policy and strategy, as summarised above, that sets out its overall investment strategy and its general risk management philosophy. It also has established processes to monitor and control these in a timely and accurate manner. These guidelines are subject to regular operational reviews undertaken by the Investment Adviser to ensure the Company's policies are adhered to as it is the Investment Adviser's duty to identify and assist with the control of risk. The Investment Adviser reports regularly to the Directors, who have the ultimate responsibility for the overall risk management approach.

The Investment Adviser and the Directors ensure that all investment activity is performed in accordance with investment guidelines. The Company's investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. Risk is inherent to the Company's activities and is managed through a process of ongoing identification, measurement and monitoring. The financial risks to which the Company is exposed include market risk (which includes other price risk), interest rate risk, credit risk and liquidity risk. Furthermore, the Company is exposed to a number of equity-like interests, 5% of the portfolio by value, either as a result of the specific targeting of these positions or through enforcing its security as a result of the occurrence of defaults. Such exposure is sensitive to changes in market factors, such as electricity prices, and the operational performance of projects, and is therefore likely to result in increased volatility in the valuation of the portfolio.

Geopolitical and market uncertainties

The Company's infrastructure investments remain largely insulated from short-term market fluctuations, given their low-volatility nature and stable, long-term, public sector backed revenue streams.

Market conditions have improved in the period. Falling inflation has prompted further interest rate cuts by the Bank of England, including a 25 basis points reduction in March 2025. Earlier concerns that the Government's October 2024 Budget might reignite inflation have not materialised to a significant extent, though the situation remains under review.

The ongoing war in Ukraine and the Israel-Hamas conflict remain geopolitical concerns. However, the Board and the Investment Adviser believe their direct impact on energy prices and market volatility has continued to subside. While the Israel-Hamas conflict carries ongoing risks, particularly around potential regional escalation and sanctions, these have not resulted in tangible disruptions for the Company.

Uncertainty has also risen over international trade following the implementation of new US tariffs. As part of President Trump's renewed protectionist policies, these actions have strained relations with key trading partners and caused global stock markets to decline in early 2025, increasing volatility and investor caution.

There also continues to be uncertainty regarding potential future Government intervention in the energy market, which may lead to forecast power prices not being realisable in reality. The implementation of the Electricity Generator Levy in January 2023 impacted the short-term profitability of certain assets in the portfolio in the 2024 financial year; however, there has been no impact in the current financial year. The levy will be in place until 31 March 2028.

Climate risk

For the third consecutive year, the Investment Adviser carried out a climate risk assessment for each underlying portfolio asset to assess the actual and potential impacts of climate-related risks and opportunities across the portfolio. The analysis considered both physical and transition risks for each asset. The data collated was based upon publicly available data on flood risk and EPC ratings, supplemented by inputs from the Investment Adviser's portfolio management team and its investment management team. Further information can be found in the Company's 2024 annual report, which is available on the Company's website. Based on the climate risk analysis undertaken, the Investment Adviser does not currently propose to make any material changes to financial forecasts due to climate risk.

11.3 Market risk

There is a risk that market movements in interest rates, credit markets and observable yields may decrease or increase the fair value of the Company's financial assets without regard to the assets' underlying performance. The fair value of the Company's financial assets is measured and monitored on a quarterly basis by the Investment Adviser with the assistance of the independent Valuation Agent.

The valuation principles used are based on a discounted cash flow methodology, where applicable. A fair value for each asset acquired by the Company is calculated by applying a relevant market discount rate to the contractual cash flows expected to arise from each asset. At period end, all investments were classified as Level 3; refer to note 11.7 for additional information.

The independent Valuation Agent determines the discount rate that it believes the market would reasonably apply to each investment taking into account, inter alia, the following significant inputs:

· Pound Sterling interest rates;

· movements of comparable credit markets; and

· observable yields on other comparable instruments.

In addition, the following are also considered as part of the overall valuation process:

· general infrastructure market activity and investor sentiment; and

· changes to the economic, legal, taxation or regulatory environment.

The independent Valuation Agent exercises its judgement in assessing the expected future cash flows from each investment. Given that the investments of the Company are generally fixed-income debt instruments (in some cases with elements of inflation protection) or other investments with a similar economic effect, the focus of the independent Valuation Agent is assessing the likelihood of any interruptions to the debt service payments, in light of the operational performance of the underlying asset. Where appropriate, the independent Valuation Agent will also consider long‑term assumptions that have a direct impact on valuation, such as electricity prices, inflation and availability. Given fluctuating electricity prices, the Investment Adviser has continued the Company's hedging programme to reduce volatility in the portfolio. Further information can be found in notes 10 and 13.

The table below shows how changes in discount rates affect the changes in the valuation of financial assets at fair value. The range of discount rates used reflects the Investment Adviser's view of a reasonable expectation of valuation movements across the portfolio over a period of six months.

At 31 March 2025, the discount rates used in the valuation of financial assets ranged from 6.58% to 13.00%, with a rate of 25.00% being applied to one financial asset due to changes in the perceived risk associated, with this project representing 0.56% of the portfolio, and a rate of 20.00% being applied to another financial asset due to changes in the perceived risk associated, with the project representing 2.64% of the portfolio. The weighted average discount rate used across the Company's portfolio at 31 March 2025 was 8.36%.

At 30 September 2024, the discount rates used in the valuation of financial assets ranged from 6.58% to 13.00%, with a rate of 20.00% applied to one financial asset due to changes in the perceived risk associated with the project, representing 0.63% of the portfolio. The weighted average discount rate used across the Company's portfolio at 30 September 2024 was 7.95%.

11.4 Interest rate risk

Interest rate risk has the following effects:

Fair value of financial assets

Interest rates are one of the factors which the independent Valuation Agent takes into account when valuing financial assets. Interest rate risk is incorporated by the independent Valuation Agent into the discount rate applied to financial assets at fair value through profit or loss. Discount rate sensitivity analysis is disclosed in note 11.3.

Future cash flows

The Company primarily invests in senior and subordinated debt instruments of infrastructure Project Companies. The financial assets have fixed interest rate coupons, albeit with inflation protection, and, as such, movements in interest rates will not directly affect the future cash flows payable to the Company.

Interest rate hedging may be carried out to seek protection against falling interest rates in relation to assets that do not have a minimum fixed rate of return acceptable to the Company in line with its investment policy and strategy. No interest rate hedging was undertaken at period end.

Where the debt instrument is subordinated, the Company is indirectly exposed to the gearing of the infrastructure Project Companies. The Investment Adviser ensures as part of its due diligence that the Project Company debt, ranking senior to the Company's investment, has been, where appropriate, hedged against movements in interest rates through the use of interest rate swaps. At 31 March 2025, the Company had not entered into any interest rate swap contracts (30 September 2024: none).

Borrowings

During the period, the Company made use of its RCF, which is used to finance investments and manage its working capital requirements. Details of the RCF are given in note 8.

The new facility has a three year term and was refinanced on similar terms to the previous RCF, with the most notable amendment being the introduction of additional flexibility in utilisations and repayments to allow the Company to enhance its working capital management.

The amounts drawn under the RCF were £41.0 million (31 March 2024: £96.0 million).

The following table shows an estimate of the sensitivity of the drawn amounts under the RCF to interest rate changes of 100, 200 and 300 basis points in a six month period, with all other variables held constant.