UKML.L Regulatory News (UKML)

UK Mortgages Ltd - Investor Update

PR Newswire

London, September 30

THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN.

30 September 2019

UK MORTGAGES LIMITED(a closed-ended investment company incorporated in Guernsey with registration number 60440)LEI 549300388LT7VTHCIT59(the “Company”)

Investor Update

At the recent EGM the Company’s investors voted overwhelmingly to support the suggested amendments to the Company’s Articles.

Since the EGM, as a result of investor feedback, the Company would like to offer further insight into the Buyback Policy, and the expected implementation.

As set out in the Circular[1] if a discount of greater than 5% persists the Board will not allow reinvestment of further capital, and instead will use surplus cash resources to buy back Ordinary Shares. Furthermore, TwentyFour Asset Management LLP (the “Manager”) believes that while the Company is trading at a discount, repurchasing shares is a good way of offering value to investors and is instantly accretive, and the Manager would be entirely supportive of such a policy.

Current expectations are that the Company will first be able to release excess cash in May 2020, as part of the refinancing of the Oat Hill 1 Portfolio, and that the amount released and available for buybacks will be between £30-50m. The range of cash released is dependent on certain factors including likely structure of the refinancing, cost of the debt issued at refinancing and prepayments, amongst others.

The Board notes that this would be a material cash release relative to the current market capital of the Company. To the extent that the Buyback Policy does not narrow the discount the Board will continue to consult with shareholders.

An update on the TwentyFour Closed-Ended Funds will take place on Wednesday 9 October 2019. The update will be held at South Place Hotel at 12pm. The update will give investors the opportunity to hear from the portfolio managers on the three closed-ended funds; TwentyFour Select Monthly Income Fund, TwentyFour Income Fund and UK Mortgages Ltd. Each portfolio manager will discuss the outlook and opportunities for their fund and highlight how their views feed into positioning.

Please contact TwentyFour on the below email address if you would like to attend.

Events@twentyfouram.comFurther information: TwentyFour Asset Management LLP Rob Ford 020 7015 8900 Numis Securities Limited, Corporate Broker Hugh Jonathan Nathan Brown 020 7260 1000

Important notice: 

This announcement (the “Announcement”) has been prepared for information purposes only, it is not a prospectus. It is issued by and is the sole responsibility of the Company. No representation, warranty, express or implied, is or will be made to, or in relation to, and no responsibility or liability is or will be accepted by Numis Securities Limited (“Numis”) or by any of its affiliates or agents as to or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Numis is authorised and regulated by the Financial Conduct Authority. Numis is acting for the Company as its sponsor, broker and financial adviser and is not acting for anyone else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for providing the protections afforded to customers of Numis. To the fullest extent permitted by law, recipients agree that Numis shall not have any liability (direct or indirect) for or in connection with this Announcement or any matters arising out of or in connection herewith. Numis has not authorised the contents of, or any part of, this document.

The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required by the Company, the Manager and Numis to inform themselves about, and to observe, such restrictions.

Certain statements in this announcement are forward-looking statements which are based on the Company’s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. References herein to potential future returns or distributions are targets and not forecasts and there can be no guarantee or assurance that they will be achieved. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this announcement is subject to change without notice and neither the Company, the Manager nor Numis assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

This announcement does not constitute or form part of and may not be construed as an offer to sell, or an invitation to purchase, investments of any description, nor as a recommendation regarding the possible offering or the provision of investment advice by any party. No information in this announcement should be construed as providing financial, investment or other professional advice and each prospective investor should consult its own legal, business, tax and other advisers in evaluating any investment opportunity. In particular, an investment in the Company involves a high degree of risk.

[1] Sent to shareholders dated 26 July 2019, where it was stated that the Board does not intend to reinvest further capital other than in the re-financing of the existing portfolio, whilst the Company is trading at a discount in excess of 5 per cent. to Net Asset Value per Ordinary Share. Subject always to the Board determining that the Company has sufficient surplus cash resources available for the ongoing funding of the existing TML and Keystone investments, repayment of any existing credit facilities and any other foreseeable commitments, the Company intends to buy back Ordinary Shares at this level of discount.