Net Asset Value(s)

25 January 2022  

Secured Income Fund plc

Monthly Net Asset Value

Secured Income Fund plc (LSE: SSIF) (the "Company"), a specialist secured lending income investment trust, listed in the UK, is pleased to provide its monthly net asset value ("NAV").

Net Asset Value

The Company announces that, as at 31 December 2021, the unaudited estimated NAV per ordinary share (cum-income) was 25.10 pence.

The estimated NAV per ordinary share includes the deduction of dividends distributed since the commencement of the wind down on 17 September 2020 of 8.50 pence per ordinary share and B Share buy backs equivalent to 28.00 pence per ordinary share.

Ongoing monitoring of the Film Production Financing portfolio has highlighted further deterioration of the expected cash flow. The portfolio, comprising of six film financings, has been heavily impacted by the changes in operating practises resulting from the COVID pandemic. This has resulted in significant delays in recouping the outstanding balances within the "contracted cash flow" element (comprising Tax Credit, Receipts and Presold Income), hampered further by the political uncertainty across some of the remaining territories. Moreover, the level of uncertainty across the "non-contractual Future Sales" element, which is considered mezzanine in nature and carries a higher risk profile, has continued to increase.

Taking into consideration the increased uncertainty of the expected cash flow, the Company has increased the provision by a further £788,138 for the combined portfolio. The combined carrying value of the film financings inclusive of transaction costs as of December 31, 2021 is £1,334,136.

An external specialist has been engaged by the Company to independently value these positions and provide assistance in identifying the best approach in realising maximum value for Shareholders given the specialist nature of the sector.

Following the RNS dated 5 October 2021 and subsequent NAV revision announced on 28 October 2021, the Company has increased the provision against its largest individual loan by £563,256. The Borrower was due to repay at the end of September but was unable to refinance the facility. An extension was granted until 31 December, which has not been met. The Company is working with the Borrower to protect the remaining value as the facility runs down. The book value as of December 31, 2021 is £3,942,792.

(http://www.securedincomefundplc.co.uk/)

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