REG - GCP Asset Backed Inc - Annual Report and Accounts

GCP Asset Backed Income FundAnnouncement

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RNS Number : 7231G  GCP Asset Backed Income Fund Ltd  30 April 2025

GCP Asset Backed Income Fund Limited

(the "Company" or "GCP Asset Backed")

LEI: 213800FBBZCQMP73A815

Annual Report and Accounts

30 April 2025

The Company is pleased to announce the publication of its the annual report
and financial statements for the year ended 31 December 2024 (the "Annual
Report and Accounts") which are now available on the Company's website at:
https://www.graviscapital.com/our-products/gcp-asset-backed/literature
(https://www.graviscapital.com/our-products/gcp-asset-backed/literature)  and
will be posted to those shareholders who have elected to receive hard copy
documents shortly.

Highlights for the year include:

·      Dividends totalling 6.3(1) pence per share declared and paid in
respect of the year. Aggregate dividend payments over the last twelve months
represent a 8.3% yield on the Company's closing share price at 31 December
2024;

·      All resolutions put to the AGM and EGM held in May 2024 were duly
passed, which resulted in a change in the Company's investment objective to
undertake a managed wind-down and realise all existing portfolio assets;

·      Strong progress was made on the Company's managed wind-down. A
total of 210.0 million shares redeemed in the year, returning £188.2 million
to shareholders and representing 67.4% of the market capitalisation at 31
December 2023;

·      Loss for the year of £10.3 million (31 December 2023: profit of
£18.3 million). The reduction primarily reflects net valuation losses and
write-downs on the portfolio of £25.9 million generally stemming from the
accelerated redemption strategy. Further information on financial performance
is included on page 18 of the Annual Report and Accounts;

·      NAV per ordinary share of 81.80(2) pence at 31 December 2024, a
decrease of 13.9% from the prior year due to discount rate and fair value
adjustments applied to the portfolio by the independent Valuation Agent as
part of the Orderly Realisation of the portfolio. Further information is
included in the Investment Manager's report on pages 12 to 17;

·      Exposure to a diversified, partially inflation and/or interest
rate protected portfolio of 25 asset backed loans with a third-party valuation
of £170.8 million(3) at 31 December 2024;

·      Repayments of £166.5 million received in the year, generating
repayment fees of £0.5 million and generating an average of IRR 8.1%.
Interest amounts of £4.0 million were capitalised in accordance with
contractual terms;

·      Total NAV return(4) of -3.3% (31 December 2023: 5.0%) and total
NAV return since IPO of 43.6%; and

·      Post year end, the Group received repayments totalling £9.2
million.

1.        Total dividends of 6.325 pence include a quarterly dividend
of 1.58125 pence per share for the quarter to 31 December 2024, which was
declared post year end.

2.        Does not include a provision for the dividend in respect of
the quarter to 31 December 2024, which was declared and paid post year end.
Following consideration of valuation inputs as part of the year-end reporting
process, the Board adopted a revised valuation of the Group's loans secured
against a property asset prior to the finalisation of the Annual Report and
Accounts which resulted in a decrease in the previously published NAV per
ordinary share of 85.47 pence.

3.        Valuation of the portfolio held by the Subsidiary. The
Company makes its investments through its wholly owned Subsidiary. Refer to
note 1 of the Annual Report and Accounts for further information.

4.        Alternative performance measure - refer to pages 94 to 96 of
the Annual Report and Accounts for definitions and calculation methodology.

On the release of the Annual Report and Accounts, Alex Ohlsson, Chairman of
GCP Asset Backed, commented:

"Strong progress has been made on the Company's managed wind-down. A total of
210.0 million shares were redeemed in the year, returning £188.2 million to
shareholders and representing 67.4% of the market capitalisation at 31
December 2023. This is a significant achievement and the Board remains
committed to the continued delivery of the plan to maximise shareholder value.
I would like to thank shareholders for their continued engagement and support
during the Orderly Realisation process."

For further information, please
contact:

 GCP Asset Backed Income Fund Limited    +44 (0)15 3482 2251
 Alex Ohlsson
 Gravis Capital Management Ltd           +44 (0)20 3405 8500
 Philip Kent
 Cameron Gardner
 Luther Ward-Faint
 Barclays Bank PLC                       +44 (0)20 7623 2323
 Dion Di Miceli
 Stuart Muress
 James Atkinson
 Burson Buchanan                         +44 (0)20 7466 5000
 Helen Tarbet
 Henry Wilson
 Samuel Adams

Notes to Editors

 

GCP Asset Backed Income Fund Limited is a closed ended investment company. Its
shares are traded on the Main Market of the London Stock Exchange. Its
investment objective is to undertake a managed wind-down of the Company and
realise all existing assets in the Company's portfolio in an orderly manner.

The Company's portfolio comprises a diversified portfolio of predominantly UK
based asset backed loans which are secured against contracted, predictable
medium to long term cash flows and/or physical assets.

 

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