Please see the full release here in the Investor News area.
You may also read our interactive Annual Report for the Period to 31 December 2018 here.
We are pleased to announce our audited Group financial results for the period from 10 April 2018 (the date of incorporation) to 31 December 2018 (“the Period”), following its admission to AIM on 9 May 2018 (“IPO” or “Admission”).
The Group’s financial year ends on 31 December each year. These results are being published in accordance with AIM Rule 19.
- Funding of £525 million was committed across 16 loans during the Period.
- The Group closed its first managed account, a partnership agreement with Kohlberg Kravis Roberts (“KKR”) with exclusivity, and with a value of £165 million (of which the Group has committed to invest up to £15 million).
- The Group closed its first discretionary senior secure debt facility with UBS into the KKR partnership with a value of up to £165 million, increasing the lending capacity of the partnership to £330 million.
- Overall third-party Assets Under Management (“AUM”) raised for the first eight months of operation totalled £371 million (excluding IPO proceeds).
- Income for the Period was £3.9 million
- Operating loss for the Period before exceptional items was £1.1 million and the total loss for the Period was £1.7 million, including exceptional costs of £0.9 million and share-based expenses of £0.5 million
- Operating costs before exceptional items were £5.0 million, representing 0.81% of total committed loans
- Dividend per share: 2.5p
- proposed final dividend of 1.67 pence per share (interim dividend of 0.83 pence per share)
- Basic loss per share: (1.18)p
- Adjusted loss per share*: (0.58)p
- Net asset value: £151m
- Net asset value per share: 95p
- New committed loans:£525m
- Deployed by the Group:£93m
- Projected aggregate income (on loan book over life of loans):£69m
- Projected aggregate income (the Group’s share, on loan book over life of loans):£27m
- Guaranteed minimum income (on loan book over life of loans):£43m
- Guaranteed minimum income (the Group’s share, on loan book over life of loans):£15m
- Weighted average LTGDV:67%
Weighted average IRR (unlevered):10%*: Adjusted loss per share is the basic loss per share adjusted to exclude exceptional items of £0.9m (being £0.6m costs related to the IPO and £0.3m exceptional professional costs)
Randeesh Sandhu, Chief Executive Officer, commented:
“In what has been a transformational year for the Group, we have made good progress towards achieving the long-term business plan set out at IPO. We have successfully provided facilities totalling £525m in less than eight months on competitive, flexible finance terms to some of the most highly regarded SME developers operating in the UK today. We have generated higher than expected projected aggregate income despite being uncompromising in maintaining the high level of credit quality on our loan book.
“We have expanded and developed our asset management activities to increase the funds available for deployment, raising £371m of new capital in the Period, making great strides in building on our existing relationships. We also have a substantial live pipeline of £670m potential new loan transactions.
“If ambitious government targets to build 300k new homes every year are to be realised, we estimate there is a lending opportunity of £394 billion over the next decade across the UK. Of this, the ‘funding gap’ equates to £237 billion of development finance opportunities. The very significant scale of this shortfall gives us confidence that, using our unique set of resources and expertise, we will be able to build our market share achieving revenue growth, profitability and long-term shareholder value.”
A copy of the full Annual Report and accompanying presentation are available to view and download here.