REG - GCP Asset Backed Inc - Realisation Plan Update, NAV and Dividend

GCP Asset Backed Income FundAnnouncement

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RNS Number : 2036R  GCP Asset Backed Income Fund Ltd  02 February 2026

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

2 February 2026

GCP Asset Backed Income Fund Limited

("GABI" or the "Company")

LEI: 213800FBBZCQMP73A815

Realisation Plan Update and Net Asset Value ("NAV")

The Company announces that as of 31 December 2025, the unaudited net asset
value ("NAV") per ordinary share (including current period revenue) was 74.69
pence per share.

NAV Movement

The NAV per ordinary share decreased by 5.10 pence (6.39%) from 30 June 2025.
This movement predominantly reflects revised estimates of future recoverable
amounts based on updated valuation assumptions and progress in realisation
discussions or agreements, and the impact of the third compulsory redemption.
Further detail on the NAV movement is shown below:

 Pence per ordinary share    Old shares  New shares
 NAV at 30 June 2025         79.79
 Interest income             2.42
 Other income                0.29
 Portfolio revaluations      (3.60)
 Operating costs             (0.62)
 Dividends paid              (3.16)
 Compulsory redemption       (15.53)
 Other movements             (0.03)
 NAV at 31 December 2025     59.55
 Reduction of share capital              15.14
 NAV at 31 December 2025                 74.69

Given the commercial sensitivity of ongoing realisation discussions and the
increasingly concentrated nature of the portfolio, the Company does not intend
to provide further asset-level detail on NAV movements. Further information
will be included in the audited annual accounts for the financial year ending
31 December 2025, and future disclosures will only be made where such detail
would not prejudice the Company's objective of maximising shareholder returns
through the orderly realisation of its assets.

Exchange of Contracts on Supported Social Housing Disposals

The Company is pleased to announce that certain borrowers to whom loans have
been extended by the Company's lending subsidiary - including one intra-group
borrower - have exchanged contracts for the disposal of properties leased to
registered providers for the provision of supported social housing (the
"Transaction"). The proceeds of these disposals, if completed, will result in
the repayment of £19.2m of loans. When considered alongside the current
valuations of the residual exposures (post completion of the Transaction) to
the Company's supported living assets, the disposals are materially in line
with the realisation plan targets set out by the Investment Manager.
Completion remains subject to the finalisation of the purchaser's lending
arrangements, which is expected prior to 31 March 2026.

Realisations & Capital Allocation

The Company has continued to execute its capital return strategy following the
Discontinuation Vote in May 2024. This has included three compulsory share
redemptions, the third of which occurred in December 2025, and the
cancellation of treasury shares. In total, these actions have resulted in a
61.11% reduction in share capital to date. Approximately £221.6 million has
been returned to shareholders, with 171,903,104 shares remaining in issue as
at 31 December 2025.

As at 31 December 2025, the Company and its subsidiaries held a cash balance
of approximately £12.6 million (30 June 2025: £18.4 million). During the
six-month period to 31 December 2025, the Company received approximately
£42.2 million in loan repayments and other cash realisations, with four loans
repaying in full. Following the period end, one additional facility was also
repaid in full. As at the date of this announcement, the Company had 19
outstanding loans.

The Company's Board of Directors (the "Board") and Gravis Capital Management
Ltd, the Investment Manager, continue to progress a pipeline of disposals and
remain committed to the orderly realisation of the Company's assets in line
with the Realisation Plan published in July 2024 and as updated in the
Company's annual and interim reports.

The Company's revised objective remains the orderly realisation of its assets
to maximise shareholder returns. Accordingly, the Company will only make new
investments where the Board believes doing so will protect, enhance, or
accelerate the recovery of an existing investment. During the period three
further investments were made of £0.2 million to support an existing borrower
realise a portfolio of short-term loans. A further investment of £11.4
million was made to purchase a senior loan secured against a part-built
residential development that ranks ahead of the Fund's investment secured
against the same asset, and to finance development costs relating to such
development. The Board and Investment Manager do not expect to make any
further investments in relation to this project.

Dividends

The Board is pleased to announce a quarterly dividend in respect of the period
from 1 October 2025 to 31 December 2025 of 1.58125 pence per ordinary share
(the "Q4 Dividend").

The Company's ordinary shares will go ex-dividend on 12 February 2026 and the
Q4 Dividend will be paid on 13 March 2026 to holders of ordinary shares
recorded on the register as at close of business on 13 February 2026.

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,
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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