REG - Secured Income Fd - Net Asset Value(s)

Secured Income FundAnnouncement

25/01/2022 07:05

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RNS Number : 4242Z  Secured Income Fund PLC  25 January 2022

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

 

 

For further information please contact:

 

 Directors

 David Stevenson (Chair)            tel: +44 7973 873785

 Susan Gaynor Coley                 tel: +44 7977 130673

 Brett Miller                       tel: +44 7770 447338

 finnCap Ltd.                       tel: +44 20 7220 0500

 Corporate Finance: William Marle

 Sales: Mark Whitfeld

 

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