REG - GCP Asset Backed Inc - Net Asset Value and Dividend Declaration

GCP Asset Backed Income FundAnnouncement

12/02/2025 07:00

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RNS Number : 7466W  GCP Asset Backed Income Fund Ltd  12 February 2025

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE
OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

FOR IMMEDIATE RELEASE

12 February 2025

GCP Asset Backed Income Fund Limited

("GABI" or the "Company")

LEI: 213800FBBZCQMP73A815

Net Asset Value and Dividend Declaration

The Company announces that as of 31 December 2024, the unaudited net asset
value ("NAV") per ordinary share (including current period revenue) was 85.47
pence per share.

Realisations

Since the Company's shareholders voted for the discontinuation of the Company
in May 2024 (the "Discontinuation Vote"), the Company has made significant
progress with the realisation of the Company's assets and the return of
capital to the Company's shareholders.

To date, the Company has compulsorily redeemed 210,019,646 shares at a
weighted average price of 89.58954 pence per share, returning c. £188.2
million to shareholders, and has cancelled 16,407,459 treasury shares,
reducing the total share capital by 51.22% since the Discontinuation Vote.

The second capital distribution, declared on 18 October 2024, was executed on
15 November 2024. A total of 50,409,977 ordinary shares were redeemed at a
price of 89.33875 pence per share, representing approximately 18.95% of the
Company's issued ordinary shares. Following this, the Company had 215,606,413
ordinary shares in issue.

As at 7 February 2025 the Company and its subsidiaries had a cash balance of
c. £15 million (31 December 2024: £4.1 million), partially funded by
scheduled repayments and further realisations achieved by the Company. The
Company's Board of Directors (the "Board") and Gravis Capital Management Ltd,
the Company's Investment Manager, continue to progress a pipeline of
realisations and disposals and remain committed to the orderly realisation of
the Company's assets materially in line with the realisation plan published in
July 2024.

The Company's revised objective is achieving the orderly realisation of the
Company's assets to maximise shareholder returns.  Accordingly, the Company
will only make new investments where the Board believes doing so maximises
and/or accelerates the potential future recovery of an existing investment. No
new investments were made in the semi-annual period, however post period-end
the Company made a small investment of £0.06 million to support an existing
development project.

NAV Movement

The net asset value per ordinary share decreased by 5.45 pence per ordinary
share (6.00%) from 30 June 2024. This decline in net assets reflects: (i) a
reduction in value where investments have been realised at a cash value lower
than that included in the 30 June 2024 valuation for such investments; (ii)
estimates of the future recoverable amounts based on updated asset valuation
assumptions and agreements or discussions to realise investments; (iii) where
investments are impacted by asset specific performance; in each case as
recommended by the Company's independent valuation agent; and (iv) the reduced
number of shares in issuance further to the compulsory redemptions.

Given the commercial sensitivity of ongoing realisation discussions, and the
Company's increasingly concentrated portfolio, the Company is no longer
intending to provide further detail on the asset specific circumstances that
have contributed to the movement in net asset value and will only do so in
future where such disclosure will not prejudice ongoing work to achieve the
Company's orderly realisation objectives, with the intention of maximising the
potential return for shareholders.

Revolving credit facility

The revolving credit facility matured in August 2024 and was not renewed.

Dividends

The Board is pleased to announce a quarterly dividend in respect of the period
from 1 October 2024 to 31 December 2024 of 1.58125 pence per ordinary share
(the "Q4 Dividend").

The Company's ordinary shares will go ex-dividend on 20 February 2025 and the
Q4 Dividend will be paid on 21 March 2025 to holders of ordinary shares
recorded on the register as at close of business on 21 February 2025.

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018 (as amended) ("MAR"). Upon publication of
this announcement, the inside information is now considered to be in the
public domain for the purposes of MAR. The person responsible for arranging
the release of this announcement on behalf of the Company is Sophie Botterill,
Associate Director at Apex Financial Services (Alternative Funds) Limited.

For further information:

 GCP Asset Backed Income Fund Limited                                      +44 (0)15 3482 2251

 Alex Ohlsson, Chairman
 Gravis Capital Management Limited - Investment Manager                    +44 (0)20 3405 8500

 Philip Kent

 Luther Ward-Faint

 Cameron Gardner

 Barclays Bank PLC, acting through its Investment Bank - Corporate Broker  +44 (0) 20 7623 2323

 Dion Di Miceli                                                            BarclaysInvestmentCompanies@barclays.com

 Stuart Muress

 James Atkinson

 Buchanan/Quill - Media Enquiries                                          +44 (0)20 7466 5000

 Helen Tarbet

 Henry Wilson

 George Beale

Notes to the Editor

About GABI

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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