GCP Infrastructure Investments PLC (LSE:GCP)sales director Ollie Matthews spoke at the One2One Investor Forum about the company’s approach to generating reliable, long-term income through UK infrastructure investments.
Matthews explained that GCP Infrastructure has been operating since its IPO in July 2010, focusing on lending against public sector-backed cash flows. The company has a market capitalisation of £631 million and a net asset value of £872 million, presenting what Matthews described as a significant discount for investors.
The portfolio is diversified across 17 sectors and 48 investments, with 60% exposure to renewables and 27% in public-private partnerships. Matthews said the business prefers debt exposure over equity to secure predictable cash flows and reduce risk.
The company is also implementing a capital allocation programme aimed at reducing volatility and rebalancing the portfolio. This includes selling £150 million worth of assets, reducing leverage, and returning £50 million to shareholders through buybacks.
Looking ahead, Matthews noted that declining interest rates and the UK government’s new £725 billion infrastructure plan could provide further tailwinds for the sector. He added that the assets are primarily inflation-protected and have low GDP sensitivity, positioning GCP Infrastructure as a potential safe harbour during periods of uncertainty.
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