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VPC Specialty Lending Investments PLC on Friday said it expects macroeconomic conditions to improve as it announced a fall in net asset value. The investor in asset-backed loans to businesses originated by non-bank lenders said net asset value per share declined 15% to 68.79 pence per share as at June 30 from 80.91p at December 31. NAV cum income return was negative 4.8% for the first half of 2024, worsened from negative 2.0% a year prior. Dividends paid for the first half of 2024 amounted to 4.26p per share, up 6.5% from 4.00p a year prior. ‘We are disappointed by the performance of the company’s unrealised equity portfolio. The core investments in asset-backed securities, the investment manager’s credit expertise and the implementation of judicious risk-management measures have meanwhile all helped the company to continue to generate income in a further challenging period,’ said Chair Graeme Proudfood. Looking ahead, he said: ‘Despite the difficult period that the company has had to weather, the Board is hopeful that the investment environment will improve as markets tend to be cyclical. Macroeconomic conditions are still uncertain but are becoming more benign as inflation gradually abates. Meanwhile, corporate earnings have been reasonably robust.’ VPC Specialty shares were up 0.1% at 40.50p each on Friday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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