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ICG-Longbow Senior Secured UK Property Debt Investments maintained its dividend follownig a rise in first-half profit.
For the six months ended 31 July 2020, pre-tax profit rose to 3.7 million from £2.7 million year-on-year, while income rose to £4.9 million from £3.8 million.
Net asset valueincreased to £119.21 million from £119.12 million as the company pursued a cautious approach to new investment during the peak of the Covid-19 uncertainty.
'Despite the overall resilience of the loan portfolio, the company's share price has fallen to a material discount to NAV as a result of the wider market re-rating following the onset of Covid-19,' the company said.
The company maintianed its dividend at 1.5p per quarter and said it currently expected to maintain its target dividend of 6.0 pence per share per annum.
'Looking forward, the key strategic challenge the company faces is to find a path to growth, which will provide greater diversification in its investment portfolio, a reduced expense ratio and improved liquidity in the company's shares,' the company said. 'Unfortunately, neither market conditions nor the share price have supported new share issuance in recent periods.