GCP Infrastructure Investments (GCP) H2 2024 earnings summary

Executive summary

• Delivered a 7.0p dividend per share for the 14th consecutive year, reaffirming the same target for the next year.

• Portfolio valued at £960.0m, with net assets of £913.1m and NAV per share of 105.22p at year end.

• Total shareholder return was 28.4% for the year, with a NAV total return of -2.2% year-over-year.

• Focused on executing a capital allocation policy: reducing leverage, returning capital to shareholders, and rebalancing the portfolio.

Financial highlights

• Total income: £38.3m (down from £51.7m prior year), with loan interest of £87.3m and net unrealised valuation losses of £51.8m.

• Net profit and comprehensive income: £19.5m, down from £30.9m year-over-year.

• Dividend yield: 8.9% (share price at 78.60p), with adjusted earnings cover at 1.01x and cash earnings cover at 0.94x.

• Weighted average annualised yield on portfolio: 7.8%.

• Leverage reduced to £57.0m (LTV 6.2%), down from £104.0m last year.

Outlook and guidance

• Dividend target of 7.0p per share maintained for the next financial year.

• Board remains committed to capital allocation policy: further disposals, continued share buybacks, and reduction of leverage.

• Positive policy environment for UK infrastructure and renewables, with new government support and ambitious decarbonisation targets.