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LONDON (Alliance News) - GCP Infrastructure Investments Ltd on Friday said its net asset value grew in the first half of its financial year, though its pretax profit dipped slightly, in what was a "challenging investment environment".
The infrastructure investment vehicle posted GBP21.9 million in profit for the six months ended March 31, down slightly from the GBP22.1 million it reported a year earlier, despite income rising to GBP25.5 million from GBP23.7 million.
The lower profit came from higher finance expenses, soaring to GBP813,000 from GBP30,000 a year earlier.
The company's net asset value per share was 107.68 pence at March 31, an increase from the 107.47p it posted at the end of September and the 105.69p on March 31, 2015.
Total net assets grew to GBP640.2 million at March 31 from GBP619.5 million at September 30.
GCP Infrastructure said it will pay an interim dividend of 3.80 pence per share, in line with a year earlier.
"Despite the growing attractiveness of the sector in general, institutional investors in particular tend to be restricted to opportunities larger in size and profile, with additional parameters limiting investments to specific types of project technology, security and with overall limits to construction exposure. In response to these challenging market conditions, the company has focused on working with existing borrowers where strong relationships have enabled the company to lend at attractive rates against well-performing operational assets supported by legacy subsidy regimes," said Chairman Ian Reeves.
"Primarily through the strength of its relationships with existing borrowers, the company advanced GBP46.4 million of loans secured against a variety of UK renewable energy, social housing and private finance initiatives projects. In addition, post period end the company advanced a further GBP11.5 million under existing facilities," Reeves added.
Shares in GCP Infrastructure were down 0.4% at 120.54p on Friday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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