GCP Infrastructure says that at close of business on 30 September 2024, its NAV was 105.22p, down 2.36p from the figure at end June 2024, which is disappointing. However, GCP says it won’t tell us what drove this move as “The company is in active due diligence and negotiations on disposals of material components of its investment portfolio and does not wish to risk such processes through publication of further detail on the constituent movements in the NAV since 30 June 2024. Further attribution of the NAV movements will be published as part of the company’s forthcoming annual report and accounts, due to be published in December.”

In December 2023, GCP said it intended to recycle £150m of assets as part of a capital allocation programme.  The proceeds will be used to: (i) repay borrowings; and (ii) return a minimum of £50m to shareholders (presumably via buy backs, so as to help narrow its discount). To date, it has announced about £31m of realisations.

At 30 September 2024, GCP had £57m left outstanding under its revolving credit arrangements, representing a net debt position of about £45m, which compares to the NAV of £913m. [It may be that this disposal is enough to wipe out that debt balance and get shareholder returns going in earnest.]

GCP : GCP Infrastructure hints at big disposal in the works