ICG Longbow results for the year ended 31 January 2015 show that the net asset value rose from 98.79p to 99.99p and the company declared dividends totalling 6p per share. The shares were trading at 105p at the year end.
As at 31 January 2015 the Group’s loan portfolio had a weighted average unexpired term of 3.8 years and was protected by a weighted average of 2.6 years’ interest income protection. The statement suggests that they think it is possible that some of the loans they have made will be paid back early during the year and this will boost income for shareholders as the borrowers pay the company early repayment penalties. They are targeting a dividend of at least 6p for the current year.
The portfolio comprises 11 loans with a weighted average coupon of 7.4%, a weighted average projected total return of 8.5%, a weighted average loan to value of 60.1% and a weighted average interest cover ratio of 1.6x. The largest loans are to Mansion Student fund where, as the student accommodation was operating with near 100% occupancy, the interest cover ratio improved and Meadows, a retail warehouse park, where the loan is being serviced from a funded interest reserve account while the owner reconfigures the park and units are therefore empty.
ICG Longbow may get boost from early repayments