VPC Specialty Lending Investments (VSL) H2 2025 earnings summary

Executive summary

• The year was marked by continued wind-down of the portfolio, with significant capital returned to shareholders, including a £43 million B-Share distribution, representing 32.8% of NAV at March 2025.

• Net returns were negative, with unrealised capital losses, especially in eCommerce holdings, offsetting positive revenue returns.

• The company fully repaid its gearing facility and completed the sale or redemption of several investments, generating £75.8 million in proceeds.

• Dividends became less frequent and smaller as income-generating assets declined.

Financial highlights

• NAV (Cum Income) return for 2025 was -22.53% (2024: -20.78%), with inception-to-date NAV return at 18.17%.

• Net Asset Value per share fell to 22.34p (2024: 52.71p); share price at year-end was 15.50p (2024: 27.95p).

• Total shareholder return for 2025 was 21.65% (2024: -40.59%), reflecting capital distributions.

• Revenue return was £4.63 million (2024: £14.27 million); total net return was -£33.04 million (2024: -£46.78 million).

• Trailing twelve-month dividend was 3.05p (2024: 7.12p).

Outlook and guidance

• The Board remains focused on an orderly wind-down and return of capital, with timing and outcome of potential acceleration uncertain.

• Appointment of PMB Capital to explore options for accelerating realisation; material uncertainty remains regarding timing and outcome.

• Market conditions remain challenging, with high interest rates, geopolitical tensions, and private credit market stress.