GCP Infrastructure Investments see half year profits rise 17%

GCP Infrastructure Investments has announced its results for the six months ended 31 March 2015. Profit for the period was £22.1m, which is a 16.9% increase year-on-year and the company was trading at an 11% premium to its NAV as at 31 March 2015. An additional £70m of equity was raised during the period, through a placing ,whilst a £50m revolving credit facility was agreed with the Bank of Scotland. The capital raised and the credit facility have enabled the Company to make nine investments (seven new loans and two advances under existing facilities which totalled £135.6m secured against UK renewable energy projects and social housing projects). Net assets increased from £470.8 million at year end to £543.7 million at 31 March 2015. The company reports that the infrastructure projects that support the Company’s investments have experienced no operational or construction issues, which would materially impact those investments during the period and that they have a pipeline of attractive investment opportunities in a variety of renewable energy transactions. The company declared a dividend of 3.8p per share for the period.

The company says that the infrastructure debt market has become more competitive over the last two years and considerably so in the last six months and that the weight of capital chasing a relatively limited pool of assets has driven up prices right across the sector. However, the Company believes that it retains certain key advantages that means it will still able to find attractive lending opportunities for example the ability to lend against smaller transactions, make decisions and transact quickly and to take subordinated as well as senior debt positions. The Company announced a new Placing Programme in March 2015 for the potential issue of up to 150m new ordinary shares which they say will give them the capacity to take advantage of current and future investment opportunities.

GCP : GCP Infrastructure Investments see Half year profits rise 17%